E.ON posts $10 billion core profit on grid business, buffer release By Reuters

© Reuters. A shareholder carries a bag with the logo of E.ON during the company’s annual shareholders meeting in Essen, Germany May 10, 2017. REUTERS/Thilo Schmuelgen/File Photo

FRANKFURT (Reuters) -E.ON, Europe’s biggest operator of energy networks, on Thursday posted an adjusted core profit of 9.4 billion euros ($10.2 billion) that exceeded its own outlook range, citing a better than expected performance at its grids division.

The company pointed to operating effects in its energy networks business across almost all countries, as well as positive temporary effects in Germany and one-offs in Slovakia, which boosted fourth-quarter results.

In addition, the company benefited from a 300 million euro buffer it had built to shield itself from the risk of higher commodity prices, adding “the possible deterioration of the energy market environment” did not materialise.

Frankfurt-listed shares in the company were 2.1% higher at 1752 GMT.

The group, which is scheduled to release full 2023 results on March 13, in November had flagged that it would likely come out at the upper end of its outlook range for adjusted EBITDA, which stood at 8.6 billion euros to 8.8 billion euros.

The news comes a week after E.ON Chief Executive Leonhard Birnbaum lashed out at Germany’s government, calling for an energy masterplan for Europe’s top economy that should be aimed at cutting red tape and offering a capacity market.

($1 = 0.9201 euros)

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