Managements at E.ON and Uniper believe first quarter earnings reported on Tuesday will not stop the companies from meeting their full year earnings targets.

Energiewende, the German government-driven policy aimed at facilitating renewable power, is still having an effect on the finances of Germany’s top utilities, despite restructuring tactics aimed at overcoming difficult circumstances.

Uniper is a spin-off of E.ON, with the new entity responsible for former, conventional power assets, while the latter contains a clean energy portfolio, through renewables and networks.
E.ON recorded adjusted net income of €525m in the year to March 31, a decline of about 20 per cent compared with the same period a year ago, and lower than consensus analysts’ estimates of €547m. The company blamed the earnings decline on higher grid fees and increased procurement costs for power in Germany and the UK. One of its nuclear power stations, Brokdorf, had also been offline for longer than expected, after an overhaul.

But E.ON said these factors would be “fully offset during the course of the year”, and reaffirmed its target for adjusted earnings before interest and tax in 2017 of between €2.8bn and €3.1bn.

In March Eon reported a net loss of €16bn for last year, the largest in its history, largely reflecting impairments on Uniper as well as the payments into the new nuclear fund. The company responded by saying it planned to reduce its debt by €7bn, partly through asset sales. Eon said the 2016 loss would be the “last to reflect the burdens of the past”, and that, following the Uniper spin-off, it would be free to focus on its three core businesses of energy networks, customer solutions and renewables.