Friday 15 August 2014

E.On. report Q2 2014

E.On., report, Q2, 2014, front page

My largest energy producer and distributor arrived with their 2nd quarter report and the market accepted it with standing ovations and the share price jumped up around 4 to 5% on the day it was published. That was the markets answer and this is my answer...

For my previous comments concerning E.On. then please go to E.On. report Q1 2014 and if you want to see the full Q2 report from E.On. that I got all the data from then please click on this link.

In the financial highlights we see that the electricity sales have increased slightly so that is good news but the Gas have dropped like as stone with -20% which gives a -13% decrease of revenue in the running half year. Not good but obviously better than what the analysts expected.

E.On., financial highlights, Q2, 2014

Looking a bit closer at the gas sales then we see that it is a dramatic drop. In most cases they claim weather based but the thing that disturbed me was that they big drop for the sales partners was claimed to be mainly due to parts of that unit is being converted to be part of Global Commodity, which is ok, but then to simply claim that the decrease in Global Commodity is "weather" based I find very disturbing especially since we are talking about almost 95 billion kWh! So that I did not like much!

E.On, Q2, 2014, gas sales

For the income statement there is not that much to say... bad, bad, bad! E.On. managed to bring home only 124 million € during the quarter and for the half year we are at 1 billion compared to 3.3 billion in 2013. Interesting, as always, is that for the full year 2013, we shareholders ended up with 2.1 billion in earnings so Q3 and Q4 were really bad!

E.On., Q2, 2014, income statement

Conclusion: E.On. is still struggling and their earnings are not flowing as nicely as one would have hoped and there are many bumps on the road. As the contrarian I am I will of course not sell my shares. If you want to find out more about E.On then please go to the analysis of E.On. 2014.


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