E.ON profits treble in first half

13th August 2012, Comments 0 comments

E.ON, Germany's biggest power supplier, said Monday its net profit more than trebled in the first six months of the year after it struck a price deal with Russian gas giant Gazprom.

Confirming a preliminary estimate released last week, E.ON said that its underlying net income for the January-June period rose to "roughly 3.3 billion euros" ($4.1 billion) from 0.9 billion euros a year earlier.

Operating profit, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), soared 55.8 percent to 6.7 billion euros on a 23-percent rise in sales to 65.4 billion euros.

E.ON said last week that first-half net profit would treble owing to the gas price supply deal with Gazprom and the fact that year-earlier earnings had been hit by one-off effects from the German nuclear phase-out.

At the beginning of July, E.ON reached a deal on lower gas prices with Gazprom.

E.ON said it was sticking to its forecast for 2012, with EBITDA expected at 10.4-11.0 billion euros and net profit at 4.1-4.5 billion euros.

© 2012 AFP

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