E.ON Benefits from Offshore Wind Development
The German energy company, E.ON, has posted half-year EBITDA of €4.3 billion, 13 per cent lower than the same period last year, and underlying net income dropped 21 per cent year-on-year to €1.2 billion.
The reduction in EBITDA is primarily attributable to a further decline in wholesale electricity prices, lower oil prices, and a weak ruble, said the company in a statement.
EBITDA at Renewables (wind, solar, hydro) was also significantly lower (-17 percent), albeit primarily due to divestments and substantial nonrecurring income recorded in the prior-year period. By contrast, Renewables’ earnings began to benefit from the newly operational capacity at Amrumbank West and Humber Gateway offshore wind farms.
In presenting E.ON’s interim results, CEO Johannes Teyssen was joined for the first time by new CFO Michael Sen who said: “A solid balance sheet and strong cash flow are enabling us to continue to make targeted, disciplined investments in the energy businesses of tomorrow. Almost 2 gigawatts of new and efficient conventional generating capacity will enter service at E.ON power stations in the Netherlands and Russia in the second half of the year, along with more than 500 megawatts of offshore wind power in the North Sea. This will have a positive effect in the quarters ahead. In addition, we plan to build two more large offshore wind farms, one off the U.K. coast, the other in the German Baltic Sea.”
E.ON continues to expect its full-year 2015 EBITDA to be between €7 and €7.6 billion and its underlying net income to be between €1.4 and €1.8 billion.