E.ON said renewable energy and foreign expansion should help lift core profit this year and next, after Germany’s decision to phase out nuclear power led to the country’s biggest utility posting its first full-year net loss.
Chief executive Johannes Teyssen said on Wednesday E.ON was pleased with the growth in its renewable unit - spanning wind, solar and hydro power - where 2011 core profit rose 21 per cent to 1.5 billion euros ($2.0 billion).
E.ON said it expected earnings before interest, tax, depreciation and amortisation of 9.6-10.2 billion euros this year, and confirmed its 2013 outlook for EBITDA of 11.6-12.3 billion. That compared with forecasts for 10.5 billion euros and 11.4 billion, respectively.
Its shares were up 4.6 per cent to 17.87 euros by 0813 GMT, the stock’s biggest intraday gain in five months and outperforming a 0.6 per cent higher blue-chip DAX index.
Germany’s nuclear exit and losses at E.ON’s gas trading unit were mainly responsible for a 2011 net loss of 2.22 billion euros, E.ON said.
“Even if E.ON was adversely affected by a number of key issues such as gas prices, the nuclear phase-out or depreciations, we believe that the company has a good starting base for a positive development,” DZ Bank analyst Hasim Senguel said.