E.ON: expects rise in full-year profit

(CercleFinance.com) - On Wednesday E.
ON said that its acquisition of smaller rival innogy will help the German energy company post a rise in full-year earnings.

Europe's biggest operator of energy networks expects that fY 2020 - the first full year to include innogy - will see the company post another increase in earnings, although it has not yet factored in the possible implications of the corona crisis.

E.ON expects adjusted EBIT of between 3.9 billion to 4.1 billion euros this year, with adjusted net income of 1.7 billion to 1.9 billion euros.

In comparison, the Essen-based energy company posted adjusted EBIT of 3.2 billion euros with adjusted net income of 1.5 billion euros.

The energy industry shouldn't be as hard hit as other industries, its CEO Johannes Teyssen emphasized this morning.

However, industrial and commercial customers are consuming noticeably less energy, which will have a temporary impact our network and sales businesses, he said.

E.ON anticipates a temporary decline in demand at its B2B business as well.

The group, which has over 14,000 employees, said that it has adopted a dividend policy that includes an annual growth rate of up to 5% until 2022.

E.ON shares are currently up 9.7% on the Frankfurt Stock Exchange.

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