Germany’s two largest utilities E.On and RWE have both announced better than expected profits in their first quarter results on the back of high energy prices and growth in eastern Europe.
E.On, Europe’s largest listed power group, raised adjusted operating earnings by 7% to €2.52 billion. Growth in central Europe and the US and significant expansion into eastern Europe with its purchase of part of Hungary’s MOL have boosted results.
Meanwhile, RWE reported a 5% increase in net profit to €975 million but operating earnings fell following a series of disposals.
Both companies gave downward looking outlooks for the year ahead on the heels of rising fuel costs.