German utility E.ON has booked net income attributable to shareholders of E4 billion for the first half of 2007, up 26% compared to E3.1 billion in the same period of 2006. According to MarketWatch, this result was despite a disappointing 18% drop in Q2 net profit.
E.ON’s adjusted net income was up 9% to E3.1 billion in H1 2007, compared to E2.8 billion in the comparable period of 2006. In addition, sales rose by 4% in H1 2007 over H1 2006, from E34.2 billion to E35.6 billion, and adjusted earnings before interest and taxes (EBIT) rose 7% to E5.4 billion, compared to E5.1 billion in the previous year.
According to E.ON, its positive results for H1 2007 were driven, in part, by its UK operations, which posted a 63% increase in adjusted EBIT, to E741 million, up from E455 million in the same period of 2006. This was mainly due to lower gas procurement costs, which had been substantially higher in the prior-year period because of a gas supply bottleneck.
The company’s Nordic operations were also strong, with adjusted EBIT up 12% to E475 million, due to higher electricity sales volumes and successful hedging for the production portfolio. However, the mild winter led to significant declines in sales volume and adjusted EBIT at its central Europe gas business.
E.ON said that, based on its continued positive operating performance in the second quarter, the company continues to expect adjusted EBIT for the whole of 2007 to surpass the high prior-year level by between 5% and 10%.
E.ON’s CEO, Wulf Bernotat, said: By rapidly implementing our ambitious package of initiatives, we’re demonstrating that we’re working hard to meet our growth targets and boost our performance. At the same time, E.ON’s positive development in the current year underscores that we have the right strategy.