EON’s Proprietary Energy-Trading Loss Narrows in First 9 Months

EON SE’s loss from buying and selling energy for itself narrowed in the first nine months as Germany’s biggest utility recovered from lower earnings in gas, oil and eastern European power markets last year.

EON’s proprietary trading unit lost 34 million euros ($46 million) before interest, tax, depreciation and amortization, according to the Dusseldorf-based company’s report for the nine-month period ending Sept. 30 published today. That compares with a 66 million-euro loss the same time last year.

EON’s profit from optimizing the value of its power plants fell 44 percent to 775 million euros, after 2012 benefited from a one-time payment from a settlement with Gazprom on gas-delivery contracts, the company said.

The utility cut staff at its global commodities unit, which comprises the proprietary trading, optimization and infrastructure businesses, by 33 percent this year to 1,468 as of Sept. 30, the company said in the report.

“The number of our traders is relatively stable,” Georg Oppermann, a company spokesman, said by phone from Dusseldorf today. “The cuts were mainly driven by the sale of our Hungarian business and the transfer of staff to other segments.”

The company employs around 150 traders at its Dusseldorf headquarters, Oppermann said.

EON buys and sells electricity, natural gas, oil, coal, carbon emissions and biomass through its global commodities unit.

To contact the reporter on this story: Julia Mengewein in Frankfurt at jmengewein@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.