E.ON’s first-quarter results in line with expectations
- As anticipated, EBITDA1 and underlying net income below prior-year figures
- Significant reduction in debt
- Forecast confirmed: EBITDA expected to be €9.2 – €9.8 billion, underlying net income €2.2 – €2.6 billion
E.ON SE recorded EBITDA of roughly €3.6 billion in the first quarter of 2013, €0.2 billion below the prior-year figure.
Divestments reduced E.ON’s earnings by €0.2 billion, lower output and narrower margins in fossil-fueled generation by €0.1 billion compared to the prior-year period. Earnings were positively affected by €0.1 billion in cost savings delivered the E.ON 2.0 efficiency-enhancement program and by higher earnings at the Renewables segment, which resulted mainly from an increase in installed generating capacity.
E.ON’s underlying net income declined from €1.7 billion in the prior-year period to €1.4 billion. Alongside the above-described EBITDA effects, this reflects a normalization of the company’s tax rate. The decline was partially counteracted by slightly lower depreciation charges and interest expenditures.
The E.ON Group’s first-quarter investments declined by 21 percent year on year to €0.9 billion. Its operating cash flow of €1.6 billion was considerably higher than the prior-year figure of €0.4 billion.
E.ON’s economic net debt stood at €31.6 billion at March, 31, 2013, a decline of €4.3 billion from the figure at year-end 2012. The main reason for the improvement was that divestment proceeds and positive operating cash flow significantly surpassed investment expenditures. Net financial debt declined to €10.4 billion as of the first-quarter balance-sheet date.
E.ON expects its full-year 2013 EBITDA to be between €9.2 and €9.8 billion. This forecast factors in the loss of earnings streams through asset sales under the company’s ongoing divestment program. E.ON expects its 2013 underlying net income to be between €2.2 and €2.6 billion.
1Adjusted for extraordinary effects.
This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.