Thursday 15 May 2014

E.On report Q1 2014

E.On, Q1, 2014, report

E.On dropped down by almost -2% due to the news that they arrived with in the Q1 report. The E.On. report Q1 2014 in its full version. What was then in the report?

Below is the highlights as they were given from E.On and we see there that compared to Q1 2013 the result is overall not very good. The electricity sales increased with 2% but the gas sales are down by -24% which is a lot! The net income for the quarter compared to in 2013 is down by a full -61%! The only semi good things would be that the amount of employees have kept decreasing and they have managed to decrease their net debt also.

E.On, highlights, Q1, 2014

Going to the back of the report to look at the income statement we see that the total sales (gas + electricity) was down by -12% and even though the cost of material was down by an equal order of magnitude the final result is still down by over -60% as was mentioned in the highlights. I do however find one thing of interest. During this Q1  2014 they report earnings per share of 0.40 € which compared to Q1 2013 with 1.14 € shows a very bad result. Looking back on the year 2013 then E.On reported in Q1+Q2 earnings of 1.61 €/share and then Q1+Q2+Q3 they reported 1.42 €/share (so clearly a loss) and for the full year 2013 we ended up with earnings of 1.12 €/share (even bigger losses) which was even lower than what they reported as earnings back in Q1 2013. So to me this result means nothing and E.On seem to shuffle costs and profits around on the quarters as they see fit, in a similar fashion to how the banks are doing it.

E.On, income, Q1, 2014

Conclusion: I am pretty happy with the quarter and if they make a similar result for the remaining quarters of the year then the full year 2014 will become better than 2013 and the dividend payment can be increased once again. So I will keep my shares but will also not increase my holding any further. Here you can find the previous analysis of E.On 2014.

No comments: