EON Says Energy Industry Downturn May Hit Future Dividends

  • CFO says utility must draw conclusions from industry downturn
  • Reiterates dividend payment of 50 euro cents for 2015
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EON SE, Germany’s largest utility, said the downturn in the energy industry is a “reality check” for the company’s investment strategy and its dividend policy in coming years.

While the Essen-based company is sticking to its plan to pay a 50 euro cents-a-share dividend for 2015, “this is a glimpse in the rear-view mirror,” Chief Financial Officer Michael Sen said in an interview on Friday. “We see a considerable economic deterioration that won’t remain without consequences. Wholesale prices are at an all-time low and oil prices have fallen significantly.”