Thursday 20 August 2015

E.On report Q2 2015

E.On, Q2, 2015, front page

The Q2 report from E.On is also out and since their IT department have still not managed to sort out the RSS feed (even thought I have complained on them) I obviously do not get a heads up when the report arrives. Very annoying. Share price on the day of release should have been down according to me and what the market responded I do not know.

For the report in full please go here and to see my previous summary please visit E.On report Q1 2015 and to find out more about E.On then please go to analysis of E.On 2015.

Looking at the financial statement below then we see that the sales for Q2 were excellent with only -10% compared to the energy demanding Q1 and 12% higher compared to Q2 in 2014. That is indeed excellent! However the material costs amazingly jumped up. The reason why I write amazing is because the price of coal, oil, gas have all decreased so to see a jump up like that in material costs are disturbing. So for this excellent quarter the earnings dropping out were a measly 143 million € which is, to put it frankly, bunk! There were some interesting comments from the Maroon CEO which meant that if Germany start moving in the direction with other European peers then the earnings will some day start flowing again. I know too little to be able to put a valuation on that statement but I will still stick to my thought... everyone needs and use electricity today and the more robotics we go the more electricity we will need even though we try to save it and decrease our bills. These electricity giants must therefore also be able to make earnings at some point in time again.

E.On, Q2, 2015, financial statement

It is also worth to mention that 37% of the shareholders took the offered shares in dividend which decreased the amount of treasury shares. Since there were no additional fees from my broker for doing so I was of course one of those 37%.

Conclusion: E.On had another bad quarter and they are moving forward with the split into the "dirty" business and the "green" business which should take place within the next year. I will remain shareholder in E.On and I still do not like the CEO.

1 comment:

Fredrik von Oberhausen said...

There was a disturbing adhoc report from E.On that in my opinion once again shows the incompetence of the CEO while the supervisory board have voted and decided that nuclear power will remain within E.On... E.On was supposed to become the "green" business and should be sold to clients as such.

So... wooow... talk about serious failure and maybe now the institutional investors will take their responsibility and kick out the Maroon! But my guess is that, that will still not happen. Maybe when he burns down the place to the ground then maybe the will wake up and not only sit and look at the cash flow.