DGAP-News: E.ON SE: Results in line with expectations

DGAP-News: E.ON SE: Results in line with expectations

DGAP-News: E.ON SE / Key word(s): Half Year Results
E.ON SE: Results in line with expectations

13.08.2013 / 07:30


E.ON's results in line with expectations

  - As anticipated, EBITDA  (*1 and underlying net income below the
    prior-year figures.

  - Low capacity utilization in traditional generation business

  - Further expansion of renewables business

  - Forecast confirmed: full-year 2013 EBITDA still expected to be between
    EUR9.2 and EUR9.8 billion, underlying net income between EUR2.2 and
    EUR2.6 billion

Midway through 2013 E.ON's business performance continues to be in line
with its expectations. Its first-half sales of EUR64.6 billion were
slightly below the prior-year level. E.ON's first-half EBITDA declined by
15 percent to EUR5.7 billion. Cost savings delivered by the company's E.ON
2.0 program and higher earnings at its Renewables and Exploration &
Production segments had a positive impact on earnings but were more than
offset by the absence of earnings from divested companies and the effect of
the current market situation in fossil-fueled power generation. In
particular, E.ON's power generation business in Europe is suffering from
low capacity utilization and low wholesale prices as a result of Europe's
economic crisis and interventionist energy policies and regulations.

E.ON's underlying net income declined by EUR1.4 billion, or 42 percent, to
EUR1.9 billion, primarily because its EBITDA was lower and its tax rate was

E.ON is making good progress transforming itself into an international
provider of energy solutions. In July it officially inaugurated London
Array, the world's largest offshore wind farm, and has begun building
Amrumbank West wind farm in the German North Sea. E.ON now has more than 5
gigawatts of wind and solar capacity; including its hydro assets, the
company has nearly 11 gigawatts of renewables capacity in operation. In
E.ON's distributed-generation business, in Germany the first small-scale
CHP units of its partnership with Metro entered service. In addition,
Evonik hired E.ON to install a state-of-the-art combined-cycle gas turbine
(CCGT) to supply energy to Marl Chemicals Park.

As part of the restructuring of its regional business in Germany, E.ON has,
as planned, sold E.ON Thüringer Energie and E.ON Westfalen Weser and
expects to complete the sale of E.ON Mitte around New Year. Going forward,
E.ON will focus on four regional utilities in Germany. It is also
restructuring its network and sales businesses in Germany with the aim of
enhancing customer orientation.

E.ON's business outside Europe is developing well. After achieving success
with its power generation business in Russia, the company is moving forward
with its entry into the Turkish market. Enerjisa, E.ON's German-Turkish
joint venture with Sabancı, entered the winning bid for the power
distributors for the Toroslar and Ayedas regions in a government-run
auction to privatize Turkey's power networks. The acquisition process for
Ayedas was completed at the end of July 2013; that for Toroslar should be
completed by the end of September. In its three distribution territories -
Baskent, Ayedas, and Toroslar - Enerjisa will supply energy to 20 million
people, nearly one quarter the country's population, making Turkey the E.ON
market with the most customers. In May, Enerjisa commissioned Turkey's
largest wind farm and recently made the decision to build a 600 megawatt
CCGT in Bandirma in northwest Turkey. With a fuel efficiency of more than
60 percent, it will be the country's most efficient fossil-fueled power

The E.ON Group's first-half investments totaled roughly EUR4.5 billion. Its
operating cash flow of EUR4.1 billion was considerably higher than the
prior-year figure of EUR2.5 billion. The main positive factor was that in
the first quarter of 2012 E.ON paid a withholding tax on an intragroup
dividend distribution. The tax was refunded in full in the third quarter of
2012. Compared with the figure recorded at December 31, 2012 (-EUR35.9
billion), E.ON's economic net debt declined by EUR2.6 billion to -EUR33.3
billion. The main reason for the improvement was that significant proceeds
from divestments and positive operating cash flow were fully sufficient to
cover our investment expenditures and E.ON SE's dividend payout. A
reduction in provisions for pensions also helped reduce E.ON's economic net

E.ON continues to expect its full-year 2013 EBITDA to be between EUR9.2 and
EUR9.8 billion. This forecast factors in the loss of earnings streams
through asset sales under the company's ongoing divestment program. E.ON
continues to expect its 2013 underlying net income to be between EUR2.2 and
EUR2.6 billion.

(*1  Adjusted for extraordinary effects.


This press release may contain forward-looking statements based on current
assumptions and forecasts made by E.ON Group management and other
information currently available to E.ON. Various known and unknown risks,
uncertainties and other factors could lead to material differences between
the actual future results, financial situation, development or performance
of the company and the estimates given here. E.ON SE does not intend, and
does not assume any liability whatsoever, to update these forward-looking
statements or to conform them to future events or developments.

End of Corporate News


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Language:    English                                                    
Company:     E.ON SE                                                    
             E.ON-Platz 1                                               
             40479 Düsseldorf                                           
Phone:       +49 (0)211 4579-0                                          
Fax:         +49 (0)211 45 79-5 01                                      
E-mail:      investorrelations@eon.com                                  
Internet:    www.eon.com                                                
ISIN:        DE000ENAG999                                               
WKN:         ENAG99                                                     
Indices:     DAX, EURO STOXX 50                                         
Listed:      Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime  
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             Terminbörse EUREX; Mailand                                 
End of News    DGAP News-Service  
225418 13.08.2013                                                      
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