E.ON AG (E.ON) has provided outlook for the year 2009 and target for the year 2010. It expects adjusted EBIT at prior-year level, adjusted net income to decline by around 10% for the year 2009. It also expects to increase adjusted EBIT by around 10% to about EUR11 billion for the year 2010.
Dividend: management to propose EUR1.50 dividend per registered share for 2008, payout ratio remains between 50 to 60% of adjusted net income.
The main adverse factors are anticipated lower electricity and gas sales volume due to the economic crisis, a price-driven narrowing of upstream gas margins, effects from the regulation of electricity and gas networks in Germany, and currency-translation effects. The positive factors include improved margins in electricity generation. E.ON expects adjusted net income to decline by around 10 % relative to the prior year due to higher interest expenses resulting from increased indebtedness. For the dividend for 2009 financial year, E.ON intends to stand by its current payout ratio of 50 to 60 % of adjusted net income.
In May 2007, the company expected to increase 2010 adjusted EBIT to EUR12.4 billion. The following represents the main changes compared with the company’s assumptions from May 2007: anticipated positive effects from wider margins in the power generation business will be partially mitigated by anticipated lower electricity and gas sales volume due to the economic crisis, adverse effects from the regulation of electricity and gas networks in Germany, negative currency-translation effects, and lower anticipated earnings contributions from the company’s new market units.