German energy company E.ON has reported sales of €26bn in the first quarter of fiscal 2010, unchanged from the prior year quarter. Adjusted earnings before interests and taxes (EBIT) in the first quarter was up 20 per cent year on year to more than €3.7bn.
Net income of €2.3bn and earnings per share of €1.2 were both down by 7 per cent compared to €2.5bn and €1.29 per share in the same quarter previous year.
E.ON said that it achieved significant earnings increases in the UK, energy trading and its fairly new renewables business. The Central Europe market unit recorded adjusted EBIT of €1.638bn, €13m below the prior-year figure.
A regulation-driven increase in power and gas network charges, efficiency improvements and the commissioning of new generating units were the main positive factors, whereas the disposal of power capacity and the ultrahigh-voltage transmission system as well as narrower margins in the gas business were the main negative factors, according to the company.
Pan-European Gas's adjusted EBIT was down by €111m to €713m. E.ON said lower earnings in the transport business and the absence of earnings streams due to the disposal of Thuga were not offset by higher earnings in its gas production business.
The UK market unit's adjusted EBIT increased significantly, rising by €358m to €433m. This is primarily attributed to improvements in the retail business and to a weather-driven increase in gas sales volume.
Nordic's adjusted EBIT increased slightly to €234m. US Midwest's adjusted EBIT of €129m was €4m below the prior-year figure. Adjusted EBIT at the New Markets segment (which encompasses E.ON's operations in Russia, Italy, Spain and renewables) was up by 55 per cent to €246m.
The company expects 2010 adjusted EBIT to increase by between 0-3 per cent and adjusted net income to be at the prior-year level.
