The E.ON Group’s businesses performed as anticipated in the first quarter of 2014. The difficult business and regulatory environment led negative growth in EBITDA and net income.
Amidst a continued difficult business and regulatory environment, and in the wake of divestments, E.ON’s EBITDA declined by 12% year on year to €3.2 billion, its underlying net income by 13% to €1.2 billion. By contrast, operating cash flow rose by €1 billion to €2.6 billion, primarily owing to positive developments in working capital. E.ON continues to expect full-year 2014 EBITDA of €8 to €8.6 billion and underlying net income of €1.5 to €1.9 billion.
E.ON CFO Klaus Schäfer said: “E.ON is staying on course in difficult times. We’re reducing our debt and costs, without neglecting investments in our future.” In the first quarter of 2014 E.ON lowered its net debt by more than €1 billion. As planned, it is also reducing its controllable costs — this year by another €300 million. “This gives us the flexibility to make targeted investments in growth businesses like wind and solar power,” Schäfer pointed out. The Renewables segment recorded first-quarter earnings of nearly €600 million, 20% more than last year.
E.ON is further enlarging the proportion of renewables in its generation portfolio by building Amrumbank West, an offshore wind farm located north of the island of Helgoland in the North Sea. The first foundations were installed in January. When completed in 2015, Amrumbank West will have 288 MW of capacity. Earlier this year E.ON also launched Next Generation, a project to combine its renewable and conventional generation businesses into a single segment, creating a leaner organization in which all generation technologies work together efficiently. “All of E.ON is working systematically to establish a balanced generation portfolio and significantly leaner organizational setup,” Schäfer said.