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E.ON treble profits after Russian gas deal

E.ON, Germany's biggest power supplier, said Tuesday its net profit more than trebled in the first six months after it struck a price deal with Russian gas giant Gazprom and despite Germany phasing out nuclear power.

Published: 7 August 2012 11:31 CEST
E.ON treble profits after Russian gas deal
Photo: DPA

The company said in a statement that it expected underlying net income for the period from January to June “to be around €3.3 billion,” compared with €0.9 billion a year earlier.

The “extraordinary” rise in profits “results from the positive effect … mainly (of) the settlement with Gazprom and the discontinued negative one-off effects from the German nuclear phase-out,” it said.

“These effects will also continue to show in the quarters to come,” it added.

E.ON is scheduled to publish details of its first-half earnings next week.

Operating profit, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), is projected to have risen by 55.8 percent to 6.7 billion euros.

At the beginning of July, E.ON said it had reached a deal on lower gas prices with Gazprom and since having done so is sticking to its forecast for 2012, with EBITDA expected to reach up to €11 billion and net profit up to €4.5 billion.

AFP/The Local/jcw

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

Published: 16 February 2024 10:45 CET
France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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