HomeSmart Grid T&DEnergy EfficiencyGerman government refund helps positive results for E.ON

German government refund helps positive results for E.ON

E.ON chief executive Johannes Teyssen said the utility will increase its dividend next year after a government refund enabled the company to reduce its debt significantly.

The refund by the government allowed the company to reduce debt by nearly €5bn. The government came out the wrong side of a ruling, which judged the imposition of a nuclear fuel tax six years ago as unconstitutional.
Johannes Teyssen
Teyssen said, “By continuing to systematically implement our debt-reduction programme, we’ll be well on our way towards achieving the flexibility to increase our dividend. At the same time we want to invest in sustainable growth and thus to expand our leading position in the new energy world.”

The company reaffirmed its guidance for full year 2017, with adjusted earnings before interest and taxes of €2.8bn-3.1bn and adjusted net income of €1.2-1.45bn.

E.ON said that, beginning with the dividend for financial year 2018, it planned to raise its payout ratio from the current 50 to 60 per cent to a minimum of 65 per cent. Adjusted earnings before interest and taxes were €729m in the second quarter, up 70 per cent on a year ago. Revenues were at €9.1bn, up 1 per cent year-on-year. Ebit at its energy networks business rose 31 per cent ” thanks to improved margins in Sweden and the Czech Republic, along with regulatory effects in Germany.

Teyssen also stated that the company’s Turkish business is progressing well, adding the group expected power demand in the country to rise and flagging a possible listing of Enerjisa, its local joint venture with Sabanci.