E.ON (FWB: EOAN) saw first half profits more than tripled after a settlement was reached with Gazprom on gas supply contracts.
Cheaper gas supplies helped boost profit margins and represent a significant turnaround for the company who saw its earnings hugely diminish last year following the German retreat from nuclear power.
E.ON has announced first-half earnings before interest, tax, depreciation and amortisation (EBITDA) would be close to $8.3bn, up from $4.3bn a year ago.
Underlying net income rose to $4.1bn from $1.1bn a year earlier, the Dusseldorf- based company said today in a statement.
About 73 percent of the underlying net income forecast for the full year has already been achieved, according to Daniel Seidenspinner, an analyst at B. Metzler Seel Sohn & Co. KGaA, reports Bloomberg.
E.ON and Gazprom agreed to amend long-term supply deals last month after the utility lost hundreds of millions of euros on contracts linked to oil prices. The accord was backdated to the fourth quarter of 2010 and added about 1 billion euros to EON’s half-year results, the utility said in a July 3 statement.
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