E.ON: posts higher first-quarter profit on innogy takeover

(CercleFinance.com) - E.
ON, Germany's largest utility company, has reported a 25% rise in first-quarter core earnings on Tuesday, helped in part by the takeover of its smaller rival innogy.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were at 1.5 billion euros in the first three months of the year, higher than the 1.2 billion euros reported one year ago.

The German renewable-energy giant said net profit for the quarter ended March rose to 691 million euros, slightly above last-year's level of 650 million euros.

First-quarter sales rose from 9.1 billion euros in the prior-year period to 17.7 billion euros.

In a statement, E.ON said its business is "highly resilient" because regulated businesses generate over 80% of its earnings.

The Essen-based energy company hence maintained its forecasts, expecting 2020 adjusted EBIT of between 3.9 billion euros and 4.1 billion euros and net income of 1.7 billion euros to 1.9 billion euros.

These forecasts, however, do not include risks from the Covid-19 pandemic, it warned.

E.ON shares were up 1.2% on the Frankfurt Stock Exchange in early morning trading.

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