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Adjusted operating profit (EBIT) rose 24 percent in the first quarter of 2020 to 1.460 billion euros. Analysts had only expected 1.424 billion euros. The bottom line is that the adjusted net profit increased by 6 percent compared to the same period in the previous year to 691 million euros.
The takeover of the network businesses of the RWE subsidiary innogy made a significant contribution to the result. Accordingly, sales increased significantly – by 94 percent to 17.665 billion euros. E.ON explained that the high resilience of the business also has to do with the fact that over 80 percent of the result comes from regulated businesses. The DAX company could not yet fully assess the effects of the corona crisis on business, as it was only affected by the lockdown measures in Europe in the past three weeks.
E.ON boss Johannes Teyssen said the group wanted to contribute to the reconstruction after the economy. This included projects in the areas of digital economy, electromobility and network expansion. “For such future issues, we intend to mobilize another half a billion euros in the medium term in addition to our already planned investments,” said Teyssen.
For the full year, an unchanged EBIT of between 3.9 and 4.1 billion euros and an adjusted consolidated profit between 1.7 and 1.9 billion euros are expected.
innogy takeover despite action lawsuits on schedule
E.ON does not expect the innogy minority shareholders’ lawsuits against the squeeze-out to delay the takeover process. “It remains on the schedule that we have announced,” said E.ON boss Johannes Teyssen on the occasion of the presentation of the quarterly figures. The squeeze-out had been registered for a so-called release procedure. With this, the DAX Group wants to ensure that the competent court approves the share transfer in an urgent procedure.
E.ON then expects the entry “at the latest in September,” said Teyssen. The integration of the former RWE subsidiary innogy is already being implemented. By the end of the year, all major decisions should have been made at the request of the CEO. According to Teyssen, it may still take until 2021 for IT integration to take effect.
RWE and E.ON had decided to smash innogy, the food supplier, and to divide the business areas between them. At the beginning of March, innogy’s extraordinary general meeting approved the takeover of shares and the squeeze-out. Eon had previously set the amount of the cash compensation at EUR 42.82 per Innogy share.
The E.ON share finally appeared on XETRA on Tuesday at 3.38 percent firmer at 9.41 euros.
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