E.ON: raises dividend, innogy deal 'on schedule'

(CercleFinance.com) - German utility giant E.
ON on Wednesday boosted its dividend for the third year in a row, having reported a slight rise in full-year net profit.

However, the market didn't react in a positive way. The company's shares were down 1.4% at 9.7 euros this morning in Frankfurt.

The group said adjusted EBIT reached 3 billion euros in 2018, down slightly from the previous year's 3.1 billion euros, although at the upper end of its forecast range.

Due to a reduction in interest expenses and taxes, E.ON's adjusted net income rose to 1.5 billion euros last year, from 1.4 billion euros in 2017, again at the upper end of the forecast range.

For 2019, E.ON expects adjusted EBIT of 2.9 billion to 3.1 billion euros and adjusted net income of 1.4 billion to 1.6 billion euros.

The company raised its dividend to reflect its "solid" business performance.

Following 30 cents per share for 2017 and 43 cents per share for 2018, the company intends to pay shareholders a fixed dividend of 46 cents per share for 2019.

E.ON also said that the planned takeover of innogy remained "on schedule."

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