German power giant E.ON saw earnings before interest and tax grow by 8% to E7.3 billion in fiscal 2005, although its shares dropped slightly as investors were disappointed by a less forthright than anticipated view on 2006.
On the subject of its contentious bid for Spanish utility Endesa, E.ON remains confident that the deal will ultimately go through.
We’ve made an attractive offer, and not just from a financial perspective. We believe that Endesa’s business prospects as part of E.ON are extremely good. I expect that the advantages of this business deal will be convincing and that political considerations will take a back seat, which would be in the best interests of the company and its development potential. We’re determined to make this acquisition happen and to write a new chapter in the E.ON story, said chief executive Wulf Bernotat.
Mr Bernotat sought to reassure investors that the company would not raise its E29 billion offer for Endesa despite it having the liquidity to do so.
E.ON saw sales grow by 21% to E56.4 billion, while net profit came in 71% up at E7.4 billion on the back of surging wholesale power prices and a series of one-off gains.