Arab Today, arab today eon profit declines 50 on nuclear shutdown
Last Updated : GMT 18:42:31
Arab Today, arab today
Arab Today, arab today

EON profit declines 50% on nuclear shutdown

Arab Today, arab today

Arab Today, arab today EON profit declines 50% on nuclear shutdown

Berlin - Arabstoday

EON AG, Germany’s largest utility, said 2011 profit slumped 50 percent because of nuclear reactor closures and lower earnings from its power generation and wholesale gas business. Underlying net income dropped to almost 2.5 billion euros ($3.3 billion), beating the 2.33 billion-euro median estimate of 26 analysts surveyed by Bloomberg. The profit measure, which EON uses to calculate its dividend, will be 2.3 billion to 2.7 billion euros in 2012. EON jumped the most since November in Frankfurt trading. Germany’s largest utilities are overhauling operations after the Fukushima disaster in Japan last March drove Chancellor Angela Merkel to order the permanent closing of all nuclear plants by 2022. The shutdown of nuclear stations trimmed earnings by 2.5 billion euros in 2011 and drove EON to announce a 15 billion-euro divestment program, job cuts and plans to expand into new markets including Brazil. The business for conventional power generation “has deteriorated in most European markets,” Chief Executive Officer Johannes Teyssen said in a letter to shareholders today. “The growth opportunities are primarily elsewhere.” Earnings before interest, tax, depreciation and amortization from power generation fell 44 percent in 2011 to 2.1 billion euros, while Ebitda from EON’s midstream natural gas unit dropped 22 percent. The company will pay a dividend of one euro a share, growing to 1.10 euros in 2012 and 2013. ‘Earnings Trough’ “The economic situation is temporarily dampening the demand for power, resulting in markedly narrower margins and lower utilization factors for our conventional power stations,” Teysson said. Last year marked an “earnings trough,” he said. Lower profits from power generation will continue to weigh on earnings through 2012, the company said. EON surged as much as 5 percent, the steepest intraday gain since Nov. 30, and traded at 17.915 euros as of 9:20 a.m. local time. EON is pursuing cost-cutting measures including trimming its workforce by as many as 11,000 people and selling assets. As of the end of March, EON closed deals worth 9.4 billion euros, selling stakes in OAO Gazprom and Italy’s gas distribution network. Further disposal candidates include Germany’s gas transmission network, the EON Energy-from-Waste business and E.ON Westfalen Weser, it said in a presentation. Exceed Target EON’s disposal program may exceed its 15 billion-euro target, according to Citigroup Inc. analysts. “Of more importance to EON’s equity story in our opinion is not so much the disposal program, but the re-investment of the proceeds,” Citigroup’s Sofia Savvantidou and Andrew Simms said in a Feb. 29 note to investors. “Management had guided that up to 50 percent of the disposal money would be used for expansion outside Europe and also into renewables.” Brazil will be the first new region targeted by EON. The company agreed to buy 10 percent of Brazilian billionaire Eike Batista’s MPX Energia SA and set up a power-generation joint venture in January. The two companies plan to jointly generate 20,000 megawatts in Brazil and Chile and will each own 50 percent of the business. Clean Generation EON plans to invest 7 billion euros to expand its clean- energy generation capacity in the next five years as Germany shutters the utility’s nuclear reactors by 2022. EON seeks to build wind farms off the U.K., Scandinavian and German coastlines, including the 1-billion euro Amrumbank West project in the North Sea that Siemens AG, Europe’s largest engineering company, will supply with 80 of its wind turbines. “We intend to commission a new offshore wind farm every 18 months,” Teyssen said. EON at the end of last year owned about 9 gigawatts of renewable generation capacity, about 4.8 gigawatts of which are hydro stations. EON’s renewable energy unit saw EBITDA rise 21 percent to 1.5 billion euros as more wind turbines were installed.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eon profit declines 50 on nuclear shutdown Arab Today, arab today eon profit declines 50 on nuclear shutdown

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Egyptian tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Egyptian tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 12:25 2017 Thursday ,23 February

Bharti Airtel buys Telenor's India operations

GMT 10:47 2017 Thursday ,23 February

Saudi Aramco may offer discounted shares to citizens

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday