BLBG:EON Says First-Half Profit Triples On Gazprom Gas Settlement
EON AG (EOAN), Germany’s largest utility, said first-half profit tripled after a settlement with OAO Gazprom (GAZP) on supply contracts.
Underlying net income for the first six months rose to 3.3 billion euros ($4.1 billion) from 900 million euros a year earlier, the Dusseldorf-based company said in a statement today. EON confirmed its outlook for 2012 profit of 4.1 billion to 4.5 billion euros.
The results come from “mainly the settlement with Gazprom, and the discontinued one-off effects from the German nuclear phaseout,” the company said. “These effects will continue to show in the quarters to come.”
EON and Gazprom agreed to amend long-term supply deals last month after the German utility lost hundreds of millions of euros on the contracts linked to oil prices. The agreement was backdated to the fourth quarter of 2010 and added about 1 billion euros to EON’s half-year results, the utility said on July 3 in a statement.
EON today also confirmed its increased full-year outlook for earnings before interest, taxes, depreciation and amortization by 800 million euros to a range of 10.4 billion euros to 11 billion euros announced after the settlement.
Ebitda rose 56 percent to about 6.7 billion euros in the first half from a year earlier, according to the company.
To contact the reporter on this story: Tino Andresen in Dusseldorf at tandresen1@bloomberg.net
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
