E.ON’s nine-month interim report shows core business delivered solid performance
- Adjusted net income more than 50 percent above prior-year figure
- Third-quarter earnings higher, nine-month adjusted EBIT markedly recovered
- Debt reduced further, balance sheet strengthened
- Earnings forecast for full-year 2017 reaffirmed
E.ON’s ongoing transformation once again made good progress in the third quarter. In the first nine months of the current financial year, E.ON’s adjusted net income rose to about €965 million, more than 50 percent above the prior-year level. Nine-month adjusted EBIT of roughly €2.1 billion was slightly below the prior-year figure, but in line with expectations.
Forecast for full-year 2017 reaffirmed
At the presentation of E.ON’s nine-month interim report, CFO Marc Spieker reaffirmed the company’s forecast for full-year 2017. “All key figures and developments are in line with our planning. We therefore reaffirm our forecast for full-year 2017. We’re well on our way toward achieving new flexibility for future investments and higher dividends.”
The company continues to expect the E.ON Group’s full-year 2017 adjusted EBIT to be between €2.8 and €3.1 billion and its adjusted net income to be between €1.20 and €1.45 billion.
Earnings growth in the third quarter
E.ON’s core business nine-month adjusted EBIT was slightly below the prior-year level, by €194 million, but in line with expectations. However, as in the second quarter, E.ON’s third-quarter adjusted EBIT again surpassed the previous year’s quarter. The increase in the third quarter was €40 million, or 13 percent.
Adjusted net income up by more than 50 percent
E.ON’s nine-month adjusted net income was up significantly, rising by more than 50 percent year on year to €965 million.
E.ON further significantly strengthened its balance sheet. Much faster than anticipated, the company reduced its economic net debt by around €6.5 billion to €19.7 billion. At year-end 2016, its debt stood at €26.3 billion.
At the presentation of its half-year results in August, E.ON announced that it would use the flexibility afforded by its strengthened balance sheet and cash flow to raise its payout ratio from the current 50 to 60 percent to a minimum of 65 percent from the financial year 2018 on. CFO Marc Spieker said: “We’re currently hard at work designing a strategy for E.ON’s future growth. By early 2018, we’ll define detailed targets for where and how E.ON can grow in the years ahead along with our new dividend policy and present them when we present our 2017 financial results.”