Ad hoc release pursuant to Section 15, Paragraph 1 of the German Securities Trading Act (WpHG)
- E.ON Supervisory Board approves new strategy and spinoff of conventional upstream and midstream business to E.ON SE shareholders in 2016 as well as a new dividend target for the 2014 and 2015 financial years
- Impairment charges on a scale of approximately €4.5 billion anticipated
- Board of Management confirms 2014 outlook for EBITDA and underlying net income
Today the E.ON Supervisory Board approved the new strategy decided on by the Board of Management, including carving out the company’s conventional upstream and midstream business (conventional power generation, global energy trading, and exploration and production), spinning off a majority of it to E.ON SE shareholders, and listing the shares on the stock market in 2016. E.ON would then deconsolidate its remaining stake. The Supervisory Board also approved the proposal to deviate from the company’s current dividend policy by aiming to pay out a fixed dividend of €0.50 per share for the 2014 and 2015 financial years.
Beyond the impairment charges already disclosed in the first three quarters, E.ON expects to record additional impairment charges on a scale of approximately €4.5 billion in 2014, primarily on its operations in Southern Europe and on generation assets. Although not cash-effective, the impairment charges will result in E.ON reporting substantial negative net income for the 2014 financial year.
E.ON reaffirms its outlook for full-year 2014 EBITDA of between €8.0 and €8.6 billion and underlying net income of between €1.5 and €1.9 billion.
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse EUREX; Mailand
- End of ad-hoc-announcement - 30. November 2014