E.ON’s profit slides to £550.86 million in the fiscal third quarter

Written by: Wajeeh Khan
November 11, 2020
  • E.ON’s profit slides to £550.86 million in the fiscal third quarter.
  • The German company reports £11.38 billion of sales in Q3.
  • E.ON forecasts up to £3.38 billion of EBIT for the full fiscal year.

E.ON SE (ETR: EOAN) said on Wednesday that its profit in the fiscal third quarter posted a decline. Operating performance, however, remained robust on the back of a rapid market recovery. The company also confirmed its guidance for the full year on Wednesday.

Shares of the company opened more than 1.5% up on Wednesday. On a year to date basis, E.ON SE is now about 1.5% down in the stock market after recovering roughly 20% since its low in March due to the COVID-19 crisis. Learn more about how do people make money on the stock market.

E.ON SE reports £11.38 billion of sales in Q3

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The European electric utility company said that its net profit in the third quarter came in at £550.86 million. In comparison, its net profit was capped at a much higher £1.53 billion in the same quarter last year. On an adjusted basis, the Essen-based company reported £123.50 million of profit in the recent quarter.

In separate news from Germany, automotive car-parts manufacturer, Continental AG said its sales were likely to remain under pressure this year.

In terms of sales, E.ON SE recorded £11.38 billion in the fiscal third quarter versus the year-ago figure of a much lower £6.45 billion. From January to September, the German company added, its performance showed resilience despite the ongoing Coronavirus pandemic that has so far infected more than 700 thousand people in Germany and caused over 11 thousand deaths.

For the full fiscal year 2020, the German company now forecasts its EBIT (earnings before interest and taxes) to fall in the range of £3.20 billion and £3.38 billion. For annual adjusted net profit, it expects £1.33 billion to £1.51 billion this year.

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CFO Marc Spieker’s comments on Wednesday

E.ON also confirmed its guidance for dividend payments on Wednesday. CFO Marc Spieker said:

“We’ve delivered a strong operating performance in the current financial year. The energy networks and customer solutions businesses deliver robust results. Taking timely, prescient action has enabled us and will continue to enable us to limit the pandemic’s impact. The sustainable effects are therefore moderate, and our business model has demonstrated its high degree of resilience during the crisis. This gives us the confidence to fully confirm both our medium-term targets and dividend guidance.”

At the time of writing, E.ON SE is valued at £22.13 billion and has a price to earnings ratio of 13.47.