German energy company E.ON has reported sales of EUR26bn in the first quarter of fiscal 2010, unchanged from the prior year quarter. Adjusted EBIT in the first quarter was up 20% year on year to more than EUR3.7bn.
Net income of EUR2.3bn and earnings per share of EUR1.2 were both down by 7% compared to EUR2.5bn and EUR1.29 per share in the same quarter previous year.
E.ON said that it achieved significant earnings increases in the UK, energy trading, and its fairly new renewables business. The Central Europe market unit recorded adjusted EBIT of EUR1.638bn, EUR13m below the prior-year figure.
A regulation-driven increase in power and gas network charges, efficiency improvements, and the commissioning of new generating units were the main positive factors, whereas the disposal of power capacity and the ultrahigh-voltage transmission system as well as narrower margins in the gas business were the main negative factors, according to the company.
Pan-European Gas’s adjusted EBIT was down by EUR111m to EUR713m. E.ON said lower earnings in the transport business and the absence of earnings streams due to the disposal of Thuga were not offset by higher earnings in its gas production business.
The UK market unit’s adjusted EBIT increased significantly, rising by EUR358m to EUR433m. This is primarily attribute to improvements in the retail business and to a weather-driven increase in gas sales volume.
Nordic’s adjusted EBIT increased slightly to EUR234m. US Midwest’s adjusted EBIT of EUR129m was EUR4m below the prior-year figure. Adjusted EBIT at the New Markets segment (which encompasses E.ON’s operations in Russia, Italy, Spain, and renewables) was up by 55% to EUR246m.
The company expects 2010 adjusted EBIT to increase by between 0-3% and adjusted net income to be at the prior-year level.