Saturday, 24 August 2013

E.On. report Q2 2013


A German energy provider


Also E.ON SE arrived with their half year report for 2013 and it was according to the plan. The report can be found here.

The CEO mentioned some things that he found of importance and they were that:


  • E.ON’s earnings performance in the first half of 2013 was as planned.
  • First-half EBITDA declined by 15% year on year to €5.7 billion.
  • Underlying net income by 42% to €1.9 billion.
  • Although our business and regulatory environment remains difficult, we continue to expect that our full-year 2013 EBITDA will be between €9.2 and €9.8 billion and our full-year underlying net income between €2.2 and €2.6 billion.



What I was less happy about in comparison to the CEO was that he mentioned that “...we’ve already significantly surpassed our original target of generating €15 billion from disposals and are now aiming for €20 billion.” I am not very happy with that they are divesting so much of their profit generating infrastructure in Europe and pushing a lot into Brazil as an example. They also intend to use the money to improve their financial situation meaning to decrease their debts which is good but I doubt it will stay as such since the CEO are a little bit too trigger happy.



A contrarian report

 When looking at the financial statement we see that the electricity sales have been decreased but happily the gas sales have been pushed up which leads to pretty much remained sales in comparison to half year 2012. The amount of employees has also dramatically decreased due to all the divestments. What is not looking bad at all is that after the half year we are up at 1.61 € earnings per share and considering that they want to pay out 50-60% of earnings as dividends it starts to look pretty good.

Conclusion: E.On. is doing better than what I expected and it is mainly due to the increased gas sales. I see no reason to sell my shares and I hope that I will get a nice dividend for 2013 but future will tell.

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