DGAP-News: E.ON SE / Key word(s): Final Results
E.ON SE: E.ON's 2014 EBITDA and underlying net income in line with
expectations
11.03.2015 / 07:30
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E.ON's 2014 EBITDA and underlying net income in line with expectations
- Cash flow stable at prior-year level
- Management proposes dividend of 50 cents per share
- E.ON 2.0 cost-cutting targets already achieved
- Strategic realignment making good progress
- 2015 EBITDA expected to be between EUR7 and EUR7.6 billion, underlying
net income between EUR1.4 and EUR1.8 billion
In 2014 E.ON recorded EBITDA of EUR8.3 billion (prior year: EUR9.2
billion), underlying net income of EUR1.6 billion (EUR2.1 billion), and
operating cash flow from continuing operations of EUR6.3 billion, which was
roughly on par with the 2013 figure. All figures are within the anticipated
range. The earnings performance reflects the persistently difficult
situation on energy markets in Germany and Europe as well as
currency-translation effects and portfolio changes. On the cost side, by
year-end 2014 the company had already achieved its target for reducing
annual controllable costs under its E.ON 2.0 program, which was launched in
2011 and continues to the end of this year. Impairment charges, most of
which had already been announced in December, led to a net loss
attributable to shareholders of EUR3.2 billion. The charges were recorded
chiefly at E.ON's generation business in the United Kingdom, Sweden, and
Italy. At the Annual Shareholders Meeting on May 7, management will propose
a dividend of 50 cents per share, which corresponds to a total dividend
payout of about EUR1 billion and a payout ratio of 60 percent of underlying
net income.
Alongside the cost savings delivered by the E.ON 2.0 program, EBITDA
benefited from improved earnings at the Generation, Renewables, and
Exploration & Production segments. The Renewables segment's wind and solar
business performed particularly well (+20 percent). The first turbines of
E.ON's two new wind farms in the North Sea, Humber Gateway and Amrumbank
West, have started to produce electricity. When fully operational, the two
farms will have an aggregate capacity of 500 megawatts. The Generation
segment benefited primarily from special effect in Germany and Italy. As
anticipated, EBITDA was lower at the Germany, Other EU Countries, and
Global Commodities segments. In Germany, Hungary, and the Czech Republic
the divestments made in 2013 took full effect in the 2014 financial year.
Currency-translation effects (primarily in Sweden and Russia) and the new
regulation period for the German electricity network business (which began
in 2014) also had an adverse impact on earnings.
CFO Klaus Schäfer said: "Considering the continued difficult market
environment in many countries, we're generally satisfied with our 2014
results, particularly since we achieved lasting cost reductions across our
business and made a number of successful disposals. Our operating cash flow
remained stable at a high level. But it's also true that extremely low oil
prices, adverse changes in currency rates, and a further decline in power
prices are having a significant effect on our business. Our forecast for
the current year is therefore cautious. In particular, we expect our power
and E&P businesses to post earnings declines. We expect E.ON's 2015 EBITDA
to be between EUR7 and EUR7.6 billion and underlying net income to be
between EUR1.4 and EUR1.8 billion. We intend to invest in profitable growth
this year as well and also to make selective investments to support our new
strategy."
Strategic renewal will be E.ON's dominant theme in 2015. Going forward,
E.ON will focus entirely on renewables, energy networks, and customer
solutions. It intends, in 2016, to combine its other
businesses-conventional power generation including hydro and its operations
in Russia, global energy trading, and oil and gas production-into a new,
independent company with a new name. The new strategic course E.ON set at
the end of 2014-"Empowering customers. Shaping markets."-is the company's
systematic response to the far-reaching changes in the energy landscape.
CEO Johannes Teyssen said: "The new energy world will be driven primarily
by customer desires, technical innovation, and digitalization. We see a lot
of opportunities here for products and services that we're developing for
and in partnership with our customers. Customers' growing trust in our
company indicates that we're on the right path. Last year we added 60,000
new customers in Germany alone." Teyssen emphasized that, alongside the new
energy world, the conventional energy world will continue to be
indispensable for decades to come. "Large-scale assets for supplying power
and gas will continue to be essential in the future if countries intend for
their industrial base to remain viable. Starting in 2016, the New Company
will play a leading role in ensuring supply security. Under our future
setup, the two companies will offer custom-tailored solutions to their
respective target groups and will be based on business models that will
appeal to different investor interests. 2015 will mark the transition to a
new chapter for E.ON. Considering the market and regulatory situation,
E.ON's performance in 2014 was pretty good overall. But we want to achieve
more. That's why we're taking a proactive approach and laying the
groundwork for E.ON to seize the many opportunities of the new energy world
and for the New Company to play a key role in the conventional energy
world. The preparations are making good progress. We intend to announce
initial details about the two companies in the second quarter."
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11.03.2015 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: E.ON SE
E.ON-Platz 1
40479 Düsseldorf
Germany
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations@eon.com
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
Standard), Hamburg, Hanover, Munich, Stuttgart;
Terminbörse EUREX; Mailand
End of News DGAP News-Service
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332047 11.03.2015
DGAP-News: E.ON SE: E.ON's 2014 EBITDA and underlying net income in line with expectations
| Source: EQS Group AG