Second Quarter E.ON Profit Increase and FY21 Eyesight Increase

(RTTNews) – German electric utility E.ON SE reported significantly higher second-quarter profit on Wednesday, with strong sales mainly due to cooler weather and the agreement on generation rights for power plants nuclear.

In addition, E.ON has raised its outlook for the 2021 financial year, with a view to reimbursing expenses relating to residual electricity production rights.

The company now expects to achieve adjusted net profit of € 2.2 billion to € 2.4 billion, higher than previous forecast of € 1.7 billion to € 1.9 billion, and up by compared to 1.6 billion euros last year.

Adjusted EBIT is now expected to reach € 4.4 billion to € 4.6 billion for fiscal 2021, compared to € 3.8 to 4.0 billion expected earlier. Last year’s adjusted EBIT was 3.8 billion euros.

The adjusted EBIT forecast has been increased by around 600 million euros for the current year due to the agreement between the German Federal Government and the nuclear power plant operators on the rights to the production of residual electricity.

Adjusted EBITDA is now expected to be between € 7.6 and 7.8 billion, compared to € 7.2 to 7.4 billion expected earlier, and against € 6.9 billion recorded l ‘last year.

The company also confirmed its medium-term objectives, in particular its profit plan until 2023, its synergies and its dividend policy.

For the second quarter, net income attributable to shareholders of E.ON was 1.75 billion euros, higher than 599 million euros last year.

In the second quarter, adjusted net income amounted to 956 million euros, compared to 272 million euros the previous year.

EBIT jumped to 2.33 billion euros from 987 million euros last year. Adjusted EBIT increased 107% to € 1.51 billion from € 729 million a year ago. Core Business Adjusted EBIT was € 896 million, up 34% from € 671 billion last year.

Customer Solutions adjusted EBIT increased 40%, and growth was 19% in Energy Networks.

Adjusted EBITDA climbed to 2.32 billion euros from 1.48 billion euros the previous year.

In the second quarter, sales increased 14% to 14.64 billion euros from 12.84 billion euros last year, with growth in all segments.

In Germany, the E.ON share traded at 10.66 euros, up 1.29%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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