No nukes and Gazprom deal boost E.ON

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No nukes and Gazprom deal boost E.ON

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Energy firm E.ON says its net profit more than tripled in the first half of the year – to 3.13 billion euros.

That was because Germany’s largest utility company benefited from a gas price deal with Russia’s Gazprom.

“Following our long-term agreement with Gazprom and those already reached with other suppliers, our gas business is no longer a strategic work in progress,” Chief Executive Johannes Teyssen said in a letter to shareholders.

The company receives a quarter of its gas from Russia – where it is Gazprom’s biggest European customer – as well as five other countries. Its gas sales in the six month period rose 11 percent from a year earlier.

There was also a recovery from the charges that came last year from the Berlin government’s decision to shut nuclear power stations.

However E.ON stressed it may have to close some fossil-fuels based generating plants due to weak electricity demand in Europe.

German utilities have posted strong first-half results so far, thanks to renegotiated gas purchase contracts and higher selling prices,.

Last month, EnBW, Germany’s third-largest utility, said first-half sales at its gas unit rose a third because of an expansion in gas trading activity.

RWE, too, is expected to release a solid set of first-half results on 14 August.