German energy firm Eon has suffered an abrupt fall in profit for the first half of the year, as it struggled against Britain’s recent cap on electricity prices.
The firm stuck by its profit targets for the whole year, despite being hit by a “particularly challenging” market in the UK. Shares fell 2.45 per cent today.
Adjusted earnings before interest and tax fell 12 per cent to €1.72bn versus the same point last year, while net profit was €544m, an 81 per cent drop.
Revenues for the first six months of the year rose five per cent to €16.1bn.
Why it’s interesting
The firm confirmed that despite struggling in the UK, a landmark deal in which it swaps assets with German competitor RWE was still on.
The companies agreed the €40bn deal last year, which will shake up the German energy market. Eon will take over RWE’s Innogy business, while asset swaps will focus Eon on regulated energy networks and retail customers.
The transaction is set to close next month.
What Eon said
Chief financial officer Marc Spieker said: “The market in Great Britain is currently particularly challenging. But here we have already responded to the demanding environment with attractive new products and clear cost management.”
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