New onshore and offshore projects boost company’s earnings in the first half of 2019 to €466m.
New onshore and offshore wind farms helped boost Eon’s adjusted earnings from renewables in the first half of the year to €466m from €396m in the same period of 2018.
Eon cited increased output from the Rampion (pictured) and Arkona offshore projects in the UK and Germany, respectively, and the Stella onshore development in the US as the main reason for the improved figures.
However, lower power prices in the UK and the expiration of incentive mechanisms in Italy had a negative impact, the company added.
The commissioning of new wind farms also boosted Eon’s renewable energy sales to €807m from €741m.
Revenue and earnings from offshore wind both rose in the first half of the year. Revenue reached €310m, up from €289m, while earnings hit €316m up from €245m.
Onshore revenue grew to €497m from €452m, however, earnings were on a par with last year at €150m.
Investments in renewables were down by €156m to €293m from €449m.
Eon said the decline was the result of a reduction in expenditures for new-build projects, whereas the prior-year figure included expenditures for the Rampion, Radford’s Run, Stella, and Bruenning’s Breeze wind projects and investments commensurate with the company’s stake in the Arkona offshore wind farm.
Output from renewables hit 9.9 billion kilowatt-hours up from 9.2 billion kWh in 2018.
Overall, Eon made a net profit of €885m in the first six months of the year, down from over €1.05bn last year.
The company put the fall down to higher restructuring expenses and negative impacts from hedging against price fluctuations.
Eon said the half-year results were in line with its forecasts.
It added that the planned transaction with RWE is on schedule and is expected to close in September.
The complex deal will see RWE owning Eon’s renewables assets, while the former’s retail business will go to Eon.