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E.ON SE (EOAN.DE)

XETRA - XETRA Delayed price. Currency in EUR
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9.99-0.01 (-0.12%)
At close: 5:35PM CEST
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Previous close10.00
Open9.96
Bid9.97 x 130100
Ask9.97 x 267700
Day's range9.87 - 10.05
52-week range7.60 - 11.56
Volume5,878,904
Avg. volume8,845,093
Market cap26.042B
Beta (5Y monthly)N/A
PE ratio (TTM)16.27
EPS (TTM)0.61
Earnings date11 Nov 2020
Forward dividend & yield0.46 (4.60%)
Ex-dividend date29 May 2020
1y target est10.33
  • EQS Group

    E.ON SE: E.ON with robust first-half results despite COVID-19

    DGAP-News: E.ON SE / Key word(s): Half Year Results 12.08.2020 / 07:00 The issuer is solely responsible for the content of this announcement. E.ON with robust first-half results despite COVID-19 * First-half results underpins the business model's resilience: bulk of pandemic's impact has no long-term implications * Medium-term forecast and dividend policy reaffirmed, full-year forecast revised * innogy takeover completed after squeeze-out, integration proceeding according to plan * Stimulus packages and Green Deal create additional growth opportunities for E.ON's core businessesFollowing the conclusion of the innogy takeover, European energy company E.ON has again demonstrated its resilience in the current economic crisis.Assuming that there is not another far-reaching lockdown in E.ON's core markets, the company expects that the bulk of COVID-19's impact is already reflected in its half year numbers. About €150 million-or half of the €300 million in total adverse earnings from COVID-19 anticipated in 2020, are attributable to the company's regulated network business. Due to regulatory mechanisms in the various markets, most of these effects can be recovered in the years 2022 to 2024.The adverse earnings impact on E.ON's customer business likewise totals about €150 million. This business so far has remained largely unaffected by major payment defaults; provisions for increased credit losses are responsible for only a small portion of the adverse impact. The majority of it resulted from the early and precautionary sell back of electricity that had originally been procured for customers but that could not be sold as a result of the lockdown. The sell back enabled E.ON to significantly reduce its risks early on.COVID-19's total unrecoverable adverse impact in 2020 is thus limited to only about 2 percent of EBITDA. Against this backdrop, E.ON reaffirmed its medium-term targets and its dividend policy. E.ON also revised its forecast for full-year 2020 to reflect COVID-19's technical earnings effects which are now more apparent. Taking into account the effects of the COVID-19 pandemic that are already foreseeable today, E.ON expects the Group's adjusted EBIT for the 2020 financial year to be between €3.6 and €3.8 billion and its adjusted net income to be between €1.5 and €1.7 billion. Previously E.ON had announced forecast ranges of €3.9 to €4.1 billion for adjusted EBIT and €1.7 to €1.9 billion for adjusted net income. At the end of the first quarter the company had unequivocally emphasized that these figures did not yet include effects involving the deferral of earnings in the network business due to regulatory mechanisms. From today's perspective, these effects are now sufficiently quantifiable.E.ON unconditionally reaffirmed the earnings ambitions for 2022 communicated at the Capital Markets Day in the spring and merely made a technical adjustment to its growth rates by updating its forecast for 2020. E.ON also reaffirmed its announced intention of increasing its dividend payout by up to 5 percent annually through the dividend for the 2022 financial year.As anticipated, the E.ON Group's adjusted EBIT for the first six months of 2020 declined owing to the aforementioned effects to roughly €2.2 billion compared with €2.3 billion in the prior year. Adjusted net income decreased to €933 million from €1.05 billion in the prior year.CEO Johannes Teyssen emphasized: "We can now see much more clearly than at the end of the first quarter and can look ahead to the second half of the current year with greater confidence. We delivered a strong first-half operating performance. Despite COVID-19, all our businesses are running smoothly and robustly. We were able to limit the pandemic's repercussions, which so far have been mild. We were even able to make up for the adverse impact of weather factors in the first quarter. This enables us to fully reaffirm our medium-term targets as well as our dividend policy."innogy takeover concluded, integration on scheduleThe squeeze-out of the remaining minority shareholders in early June enabled E.ON to take the final big step of the complete takeover of innogy. The sale of businesses in Hungary, the Czech Republic, and Germany, which was a condition imposed by the European Commission, is being implemented by E.ON as planned. It has already signed the necessary agreements with buyers. The disposals will yield proceeds of around €1 billion. "Despite a difficult market environment," Johannes Teyssen said, "we were able to realize the full value of these attractive retail businesses. From an economic perspective, we're therefore very satisfied with the sales."In late July E.ON concluded a memorandum of understanding with the Slovakian government to acquire RWE's 49-percent stake in VSEH's business. The government is not exercising its right of first refusal on the change of ownership. Going forward, E.ON will serve 1.5 million customers in Slovakia and become the biggest network operator in a key Eastern European market.From today's perspective, E.ON also expects to deliver the planned synergies from the innogy transaction of roughly €740 million from 2022 onward and roughly €780 million in 2024. It plans for the integration to result in a total of up to 5,000 redundancies.Strong operating performanceCFO Marc Spieker presented a robust first-half operating performance amid the global pandemic: "As anticipated, the COVID-19 crisis affected our EBIT in the second quarter. However, the decline relative to the first half of 2019, which resulted largely from the pandemic's repercussions, was comparatively mild. Through operating measures, E.ON was able to fully offset the reduction in sales volume in warm winter months that had adversely affected earnings in the first quarter. The main effect is the technical deferral of earnings to subsequent years. From an operating perspective, our business model demonstrated its high degree of resilience and effectiveness."The Energy Networks segment is operating stably in all markets and recorded adjusted EBIT of roughly €1.7 billion, approximately €250 million less than the pro forma figure for 2019. About €100 million of this is attributable to a reduction in sales volume due to COVID-19. Lower earnings in Sweden resulting from the new regulatory period that began this year constituted another adverse factor.Relative to the pro forma prior-year figure, the Customer Solutions segment's adjusted EBIT rose by €14 million to €457 million. E.ON is pushing ahead the digitalization of services in its customer solutions business. More than 1 million customers in Germany are already served by a new digital platform as of today. That number will increase to 4 million by year-end and to all customers in Germany by 2024. The restructuring of E.ON's business in the United Kingdom is also moving forward as planned. About 10,000 customers per day are being migrated to the new digital customer platform that E.ON developed with Kraken Technologies. The company expects the transformation in this market to be completed by mid-2022.Stimulus packages create growth opportunities for E.ONThe economic stimulus packages adopted by the European Union and the German federal government underpin E.ON's strategic position by providing substantial additional investment opportunities in the company's core business, particularly in networks, batteries, storage devices, and infrastructure. At the presentation of its numbers for the first quarter of 2020, E.ON had already announced €500 million in additional infrastructure investments for climate protection and economic stimulus. Its network investments in 2020 will be €200 million higher than originally planned.E.ON will leverage the expertise of its regional companies to help implement Germany's national hydrogen strategy. Hydrogen has the potential to play a key role in the complete decarbonization of industry, transport, and housing. E.ON will support the market ramp-up at all stages of the value chain-from production and storage to distribution and end-use by customers-to help decarbonize the various sectors until 2050. Today, the company already has 50 hydrogen projects in Europe. E.ON's network companies are making their gas distribution networks H2-ready. By connecting their distribution networks to distributed power-to-gas production facilities and to the planned hydrogen transport network, they aim to mix natural gas with green gases. The chairperson of the National Hydrogen Council established this year by the German federal government is from E.ON.This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to align them to future events or developments. * * *12.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de * * * Language: English Company: E.ON SE Brüsseler Platz 1 45131 Essen Germany Phone: +49 (0)201-184 00 E-mail: info@eon.com Internet: www.eon.com ISIN: DE000ENAG999 WKN: ENAG99 Indices: DAX, EURO STOXX 50 Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange EQS News ID: 1115811 End of News DGAP News Service

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  • EQS Group

    E.ON SE: E.ON shows strength and reliability in crisis

    DGAP-News: E.ON SE / Key word(s): AGM/EGM/Dividend 28.05.2020 / 12:00 The issuer is solely responsible for the content of this announcement. E.ON shows strength and reliability in crisis * Company's first virtual Annual Shareholders Meeting * Strategic and operating targets for 2019 financial year achieved * Dividend of 46 cents per share proposed * Good start to 2020 financial year * Corona's implications cannot yet be fully assessed based on first quarter * E.ON CEO Teyssen advocates fast track for green electricity and cost relief for customers Essen-based energy company E.ON can look back on a strategically and operationally successful 2019 financial year. "We achieved all our strategic and operating targets. The focus on energy networks and customer solutions gives the new E.ON a robust business model. Our customers and shareholders can fully rely on E.ON, especially in a time of crisis," E.ON SE's CEO Johannes Teyssen said at the company's first virtual Annual Shareholders Meeting. Teyssen addressed shareholders via a webcast. The meeting was originally to be held in Essen. The COVID-19 pandemic rendered this impossible. Teyssen emphasized that health and safety are paramount in these unusual times.The virtual format ensures that E.ON's shareholders can, as usual, pose questions to the Management Board that are answered during the course of the meeting. Voting is online as well. Resolutions adopted in this way are fully valid.innogy takeover concludes E.ON's corporate transformationThe crisis makes E.ON's high degree of stability and reliability particularly apparent, Teyssen said: "The COVID-19 crisis reaffirms my conviction that the new E.ON is on the right course. After the innogy takeover, about 80 percent of our earnings are generated in regulated or quasi-regulated businesses, particularly in the network business. The corporate transformation to create the new E.ON by focusing on two growth businesses-energy networks and customer solutions-began in 2014 and was now brought to a strategic conclusion. I'm confident that we'll leverage the resulting synergies that we announced. This will reduce our controllable costs significantly: by about €740 million annually from 2022 onward."Strategic and operating targets for 2019 achievedIn the 2019 financial year, E.ON grew its sales to €41.5 billion (prior year: €30.1 billion), thereby again improving its results year on year. The more than €10 billion increase is primarily attributable to the acquisition of a majority stake in innogy in September 2019. Adjusted EBIT rose significantly to €3.2 billion (€3 billion). Adjusted net income of €1.5 billion was at the prior-year level.Dividend to increase againTeyssen reaffirmed the E.ON SE Management Board and Supervisory Board's dividend proposal: "I told you at our last Annual Shareholders Meeting that E.ON will become progressively stronger, more calculable, more predictable. That's precisely what the innogy takeover has done. And so we're standing by the dividend promise we made in conjunction with it. As announced last year, today we propose that our shareholders adopt a resolution to pay a dividend of 46 cents per share for the 2019 financial year, following 43 cents per share for the prior year. That's the fourth consecutive increase. We're thus maintaining our policy of paying an attractive dividend. And we continue to plan to increase the dividend by up to 5 percent annually over the next three years."Business model resilient in corona pandemicTeyssen emphasized that from today's perspective E.ON's business is resilient, including with regard to the corona pandemic. He added, however, that the pandemic has not left E.ON unaffected either; neither its future course nor the scope of its economic repercussions can be fully foreseen. E.ON is therefore monitoring the related risks very carefully and reviewing its assumptions on a regular basis. E.ON's statements about the remainder of the current financial year are cautious. The company nevertheless still anticipates that its adjusted EBIT and adjusted net income will be inside the forecast range. This factors in the measures already taken to combat COVID-19 but not adverse impacts from the remainder of the years that are today not apparent.Good start to 2020 financial yearThe first quarter of 2020 offered little evidence of the pandemic and its implications. Only the final three weeks of the first quarter were affected by the lockdown measures in the markets where E.ON operates. The E.ON Group's sales for the first three months of the year increased from €9.1 billion to €17.7 billion. Adjusted EBIT rose by €285 million to just under €1.5 billion. Adjusted net income was up slightly to €691 million.Climate protection remains most important challengeTeyssen stressed that E.ON, despite the corona crisis, will continue to do everything it can to combat climate change and foster a technologically advanced, customer-centric, and climate-friendly energy system. E.ON has made its own climate targets more ambitious. Teyssen said: "The new E.ON leads by example. We're going to reduce our carbon footprint by 75 percent by 2030 and be carbon-neutral by 2040. In 2019 we partnered with our customers to avoid more than 100 million metric tons of carbon emissions. We're moving forward here too: as a partner in the transition toward a zero-emission society."He reaffirmed E.ON's planned investments in critical infrastructure for the energy transition and reiterated the company's commitment to make available an additional €500 million in investments for projects with customers to promote a better energy system and climate protection. "We want to do our part to spur economic recovery after the crisis. We see interesting and promising projects with our customers in areas like the digital economy and eMobility, to which we want to provide additional support. We believe that accelerating the modernization of environmentally friendly energy infrastructure is a particularly effective way to combine climate protection and local job creation. In addition to our already planned investments, we intend to make available €0.5 billion more over the medium term for these technologies of the future," Teyssen said.Reduce costs for customers, accelerate planning processesTeyssen reiterated his call to make green electricity cheaper and thus to propel the energy transition and reduce costs for consumers. "Germany's funding scheme for renewables is no longer tenable. Neither from an economic nor from a social perspective. The crisis is now making the long-recognized inadequacies of Germany's Renewable Energy Act even more apparent. That's why I advocate to permanently cap Germany's renewables levy at a maximum of 5 cents per Kilowatt hour and permanently reduce its electricity tax to the EU's minimum rate of 0.05 cents per Kilowatt hour. A family that consumes just over 3,500 Kilowatt hour per year would experience savings of more than €200 on a gross basis. The owner of a bakery business that consumes 50,000 to 60,000 Kilowatt hour per year would save up to €3,000. Medium-sized enterprises would benefit even more. There's now been movement in the policy debate on Germany's electricity tax and the renewables levy. That's good but can only be a start."Over the medium term, the decline in these revenues should be replaced by the revenues from Germany's new effective carbon tax. This, Teyssen said, would enhance the incentives for the transition to green electrification. It would promote more investment in sustainability across all sectors of the economy, from mobility to industry. It would also improve the energy infrastructure in cities and communities. In addition, Teyssen called for Germany's planning and consents processes to be revamped: "It's unacceptable that these processes can last more than five years, like they do today. Germany needs to set a maximum duration for them. This would make the modernization of Germany's infrastructure competitive. This also means that Germany needs to reexamine the cherished right to participate in such processes and to file lawsuits against projects. A limit needs to be set here as well. Because our society must face the future after corona with all its strength and without getting in its own way."This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to align them to future events or developments. * * *28.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de * * * Language: English Company: E.ON SE Brüsseler Platz 1 45131 Essen Germany Phone: +49 (0)201-184 00 E-mail: info@eon.com Internet: www.eon.com ISIN: DE000ENAG999 WKN: ENAG99 Indices: DAX, EURO STOXX 50 Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange EQS News ID: 1057305 End of News DGAP News Service

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