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.