E.ON tops own 2022 outlook, helped by non-core division

E-ON-RESULTS:E.ON tops own 2022 outlook, helped by non-core business
E-ON-RESULTS:E.ON tops own 2022 outlook, helped by non-core business Copyright Thomson Reuters 2023
By Reuters
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FRANKFURT -E.ON, Europe’s largest operator of energy networks, likely exceeded its own profit outlook in 2022 thanks to its division that includes legacy nuclear plants, pushing its shares to the top of Germany’s blue-chip index on Wednesday.

E.ON late on Tuesday cited a better than expected performance at its non-core unit, which covers its remaining nuclear power plants and its Turkey business, for adjusted core profit (EBITDA) of around 8 billion euros ($8.6 billion) in 2022.

Adjusted net income likely came in at 2.7 billion euros, the group said. It had forecast adjusted EBITDA of 7.6 billion to 7.8 billion euros and adjusted net profit of 2.3 billion to 2.5 billion euros.

Shares were up 2% following the news. A local broker said investors should expect some profit taking in the course of the day as the beat was due to operations E.ON no longer sees as core.

These includes its nuclear activities, which covers the decommissioning of plants no longer in operation as well as E.ON’s 1.4 gigawatt Isar 2 reactor, the only block that is still producing electricity.

Isar 2 is one of three nuclear reactors still running in Germany, which extended their life-spans to ensure security of supply in the wake of Moscow’s move to end gas supplies.

Originally slated for shut-down at the end of 2022, they are currently scheduled to end operation in mid-April.

($1 = 0.9326 euros)

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