E.ON to Infuse EUR 1.5 Billion in Renewables, EU Offshore Wind Main Target

In its 2015 financial results published today, E.ON set out a 2016 investment plan worth EUR 4.5 billion, of which EUR 1.5 billion (34%) will be dedicated to renewables, with the main focus on offshore wind in Europe and onshore wind in the US.

Offshore wind projects in Europe were also in the spotlight of last year’s investments at E.ON’s renewables business, which amounted to EUR 1.1 billion, a decline of EUR 116 million compared to EUR 1.2 billion in 2014.

In 2015, two new E.ON offshore wind farms, Amrumbank West and Humber Gateway, entered service. The company also passed a resolution to move forward with the construction of the Rampion offshore wind farm.

“We’re the world’s second-largest offshore wind company and have a well-deserved reputation for excellence in planning, building, and operating offshore assets. This makes us a sought-after partner for companies that want to invest in green energy,” said Johannes Teyssen, E.ON’s Chairman and Chief Executive Officer.

E.ON’s Renewables business recorded an EBITDA of EUR 1.3 billion in 2015, compared to EUR 1.5 billion in the previous year. The company said it expects that Renewables’ 2016 EBITDA will be slightly below the prior-year level.

Overall, the company posted an EBITDA of EUR 7.6 billion (EUR 8.4 billion in 2014), and a net loss of EUR 6.4 billion (EUR 3.1 billion in 2014). The substantial net loss is due to significant impairment charges, E.ON explained.

Last year, E.ON separated its business into two operationally independent companies, and completed all legal, organizational, HR-related, and financial aspects of the process according to plan and on schedule. This year, the company will complete the remaining steps to allow the Annual Shareholders Meeting in June to decide on the spinoff so that Uniper can be listed on the stock market.

The number of employees in the E.ON Group will decline slightly by year-end 2016, and if the Annual Shareholders Meeting approves the planned spinoff of Uniper, the number of employees will decline considerably, the company said.

Photo: Image: E.ON (Installation of the first turbine at Amrumbank West.)

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