Friday, May 29, 2015

E.On report Q1 2015

E.On, Q1, 2015, front page

Sometime ago E.On informed that they would split the company into the old dirty part and a spring fresh blooming part back then there were not much else information and this time we found out a bit more.

For the report in full please go here and to see my previous summary please visit E.On. annual report 2015 and to find out more about E.On then please go to analysis of E.On, 2015.

The Maroon was not fired but instead he will remain as the CEO of the spring fresh blooming company. Wooow! I am fairly upset with many things. If you make a new company that should be only renewable energy then that company should get a new fresh name to start its life with. It was decided that the renewable company will keep the E.On name (everyone in Germany knows E.On very well and thinks nuclear and coal when they hear the name) and the new dirty company will be named Uniper and the current CFO will become the CEO of that. To me this means that E.On will have to spend a massive amount of money to purify their name and for what reason? Tradition? I think they have clearly underestimated how much money they need to spend on advertisement. But like I said... a Maroon is running the show nothing can be done until he is gone. The headquarters for E.On will be in Essen and for Uniper it will be in Düsseldorf. 

In the highlights the only good news is that they sold a substantial amount of more gas due to a long and cold winter as they say and with +18% that is indeed a lot!

E.On, Q1, 2015, highlights

Looking at the financial statement then we see that even though there were 18% more gas sold we still ended up with less revenue so that is bad but goes a bit hand in hand with lower oil prices. In the end around 1 billion € was reported in earnings which is an ok quarter. However I am sure that more write-offs will appear as a preparation for the company separation.

Conclusion: There is a famous Swedish investor called Aktiestinsen (I mention him in the end of this article KEEP STOCKS and CARRY LONG) he once said something similar to that stocks breed like rabbits and by the look of it I will get my first litter of stocks already in 2016 and the name of the offspring will be Uniper! I have no confidence in the CEO Mr. Teyssen and I am sad to see that he will run the renewable part. I will remain grumpy shareholder.

1 comment:

Fredrik von Oberhausen said...

Oh, it should also be mentioned that they offered the dividend with a part treasury shares as payment.

For my 240 shares I would then either get 120 € in dividend and pay dividend on that or I could get 6 treasury shares + around 40 € from which then taxes will be taken.

Since the letter stated that there would be no fees on the transaction I, of course, decided to take the shares.