Ad hoc announcement §15 WpHG
Agreement reached with Gazprom on price adjustments to long-term gas supply contracts
Non-recurring effect improves E.ON’s outlook for financial year 2016
Negotiations between Uniper, the fully-owned E.ON subsidiary, and Gazprom on price adjustments to long-term gas supply contracts have led to an agreement earlier than anticipated. The agreement resolves pending arbitration proceedings between the companies.
The agreement will enable E.ON to release some of the provisions recorded in prior years, resulting in a non-recurring positive EBITDA effect of about €380 million in the first quarter of 2016. The release of the remaining provisions, made in several years, will result in cash outflow of circa € 800 million probably in the second quarter.
The non-recurring positive effect serves to increase E.ON’s forecast range for its 2016 EBITDA from between €6.0 and €6.5 billion to between €6.4 and 6.9 billion.1 Similarly, instead of underlying net income of €1.2 to €1.6 billion, E.ON now expects the range to be between €1.5 and €1.9 billion.
1As already stated on March 9, 2016, in conjunction with its outlook, considering the vote at the E.ON SE Annual Shareholders Meeting on June 8, 2016, on the spinoff of a majority stake in Uniper and assuming that the spinoff will become effective in 2016, E.ON’s outlook for 2016 will have to be adjusted due to accounting effects resulting from the spinoff. E.ON then expects its outlook to be significantly lower. Further details will be communicated along with the publication of the spinoff documents for the Annual Shareholders Meeting. Due to accounting effects, this does not allow any conclusions on the expected EBITDA and underlying net income for Uniper in 2016.
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- End of ad-hoc-announcement - 29. March 2016