Gazprom deal propped up E.ON’s profits in Q1

AFP, Frankfurt:  E.ON, Germany’s biggest power supplier, yesterday booked a rise in profits in the first three months of this year after the group secured better gas prices from Russian supplier Gazprom.
“Our first-quarter results were in line with expectations,” E.ON said in a statement.
Net profit rose by 30 per cent to 1.3 billion euros ($1.5 billion) and operating profit, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), increased by eight per cent to 3.1 billion euros.
“The earnings improvement is attributable to a non-recurring positive effect resulting from the agreement with Gazprom to adjust the terms of long-term gas supply contracts,” the statement said.
“Without this effect, E.ON’s earnings would have been slightly below the figure from the first quarter of the prior year.”
Revenues were down 12 per cent at 27.1 billion euros.
E.ON, like other power suppliers, is being hit by falling wholesale electricity prices, particularly in its conventional power generation divisions of gas, coal and nuclear.
It has shut down a number of its plants and been compelled to make heavy writedowns on its accounts as a result.

Gazprom deal propped up E.ONs profits in Q1

AFP, Frankfurt: E.ON, Germanys biggest power supplier, yesterday booked a rise in profits in the first three months of this year after the group secured better gas prices from Russian supplier Gazprom. Our first-quarter results were in line with expectations, E.ON said in a statement. Net profit rose by 30 per cent to 1.3 billion euros ($1.5 billion) and operating profit, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), increased by eight per cent to 3.1 billion euros. The earnings improvement is attributable to a non-recurring positive effect resulting from the agreement with Gazprom to adjust the terms of long-term gas supply contracts, the statement said. Without this effect, E.ONs earnings would have been slightly below the figure from the first quarter of the prior year. Revenues were down 12 per cent at 27.1 billion euros. E.ON, like other power suppliers, is being hit by falling wholesale electricity prices, particularly in its conventional power generation divisions of gas, coal and nuclear. It has shut down a number of its plants and been compelled to make heavy writedowns on its accounts as a result.