Energy giant E.ON: profit dip due to politics

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13 Aug, 2013 Updated Tue 13 Aug 2013 09:08 CEST
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German power giant E.ON reported on Tuesday a fall in profits of almost 25 percent in the second quarter of the year and blamed low prices on political intervention.

E.ON said that its profit fell by 22 percent to €919 million euros from April to June while sales over the same period fell by three percent to €28.7 billion.

In the first six months of the year, however, net profit at the firm climbed by six percent to just over €3 billion despite the slight decline in sales.

But underlying profits, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), were down by 15 percent at €5.695 billion in the six-month period.

"Midway through 2013, our business performance continues to be in line with expectations," E.ON said.

The firm said that cost savings brought about by a restructuring programme and higher earnings in the renewables and exploration and production divisions "had a positive impact on earnings”.

But other areas of the company have not performed as well and the company also blamed the “current market situation in fossil-fuelled power generation”.

It said that the power generation business in Europe was suffering from low energy prices due to what it called "interventionist energy policies and regulations."

AFP/tsb

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2013/08/13 09:08

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