European slump hits E.ON despite UK price rise
After hitting British households that needed the heating over the long, cold winter with price hikes of up to 9.4%, German energy giant E.ON today showed how much it cashed in, with UK revenues rising 9% to £4.4 billion for just the first half of the year.
The German power group forced its 5.3 million UK customers to pay 8.7% more for dual fuel and 9.4% more for gas in January, helping its underlying earnings in this country to shoot up to £274 million, from £242 million in the first half of 2012.
“Sales at the UK regional unit rose primarily because of higher retail sales resulting from increased demand due to low temperatures, particularly in March,” E.ON said.
But the group’s underlying net income fell 42% to €1.9 billion in the first half as it said falling wholesale power prices and booming demand for renewables across Europe was gnawing at profit.
“A sober view of the situation indicates that, at least for 2013 and 2014, no recovery is in sight,” chief executive Johannes Teyssen said.
Low wholesale prices, and the fact that solar and wind energy take priority in being fed into the power grid, mean gas plant operators in Germany are losing €16.5 per megawatt hour.
E.ON has already retired about 6.5 gigawatt in power plant capacity and Teyssen added: “Increasingly we also must consider closing and mothballing some assets. Unless the business environment of the energy industry in our core European markets changes tangibly, other plant closures will be unavoidable.”
Rival Centrica, owner of British Gas, made an adjusted operating profit of £1.58 billion in the first half, up 9% thanks to Britain’s long and cold winter, whilst EDF posted a £903 million UK profit in the first half of the year.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
North Korea calls Barack Obama 'a monkey' in latest attack as 'The Interview' row festers
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...