Wednesday 24 March 2021 7:01 am

E.ON proposes higher dividend as British business eyes £100m profit

E.ON’s British retail businesses, which includes the Npower brand, is recovering faster than planned, and as a result the company has proposed a higher dividend.

E.ON’s UK retail unit is likely to deliver more than £100m in profit this year, one year ahead of schedule.

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The German company, which became Europe’s largest operator of energy networks as part of the breakup of former RWE division Innogy, said it would propose a dividend of €0.47 for 2020, marginally higher from €0.46 for 2019.

Germany’s largest listed energy group said on Wednesday that the impact from the Covid-19 pandemic was limited.

In Britain, its second-largest market after Germany, E.ON lost about 600,000 clients in the course of 2020 as part of the ongoing restructuring.

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“E.ON has impressively demonstrated its strength and resilience during the greatest economic crisis in decades. We deliver secure and growing earnings and dividends,” outgoing chief executive Johannes Teyssen said.

Adjusted operating profit (EBIT) rose 17 per cent to €3.78bn in 2020 while adjusted net profit was up 7 per cent at €1.64bn, E.ON said. They are seen at €3.8bn-€4bn and €1.7bn-€1.9bn euros in 2021, respectively.