E.ON’s earnings fall to £550.86 million in the third quarter of the financial year.

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E.ON’s profit for the third quarter of the financial year falls to £550.86 million.
The German company reports sales of £11.38 billion for the third quarter.
For the full year, E.ON forecasts EBIT of up to £3.38 billion.

E.ON SE (ETR: EOAN) announced on Wednesday that its earnings for the third quarter of the financial year were down. However, the operating performance remained robust thanks to a rapid market recovery. The company also confirmed its full-year guidance on Wednesday.

The company’s shares opened Wednesday with a gain of more than 1.5%. In the year to date, E.ON SE has lost around 1.5 percent on the stock market, having recovered by around 20 percent since its low in March due to the COVID 19 crisis. Learn more about how people make money on the stock market.

E.ON SE reports £11.38 billion in 3rd quarter sales

The European power company reported that its net profit for the third quarter was £550.86 million. This compares with a much higher net profit of £1.53 billion in the same quarter last year. On an adjusted basis, the Essen-based company reported a profit of £123.50 million in the final quarter.

In a separate news release from Germany, the manufacturer of automotive parts, Continental AG said that its sales are likely to remain under pressure this year.

E.ON SE’s sales in the third quarter of the fiscal year were £11.38 billion compared with the significantly lower prior-year figure of £6.45 billion. From January to September, the German company showed resilience despite the ongoing coronavirus pandemic, which has so far infected more than 700,000 people in Germany and caused over 11,000 deaths, the company added.

The German company is now forecasting a decline in EBIT (earnings before interest and taxes) in the region of £3.20 billion and £3.38 billion for the full financial year 2020. For the annual adjusted net profit, it expects between 1.33 and 1.51 billion pounds sterling this year.

CFO Marc Spieker’s comments on Wednesday

On Wednesday, E.ON also confirmed its forecast for dividend payments. Chief Financial Officer Marc Spieker said:

“We have delivered a strong operating performance in the current financial year. Our Energy Networks and Customer Solutions businesses are delivering robust results. By acting in a timely and forward-looking manner, we have been able and can limit the impact of the pandemic. The sustainable effects are therefore moderate and our business model has proven its high resilience during the crisis. This gives us the confidence to fully confirm both our mid-term goals and our dividend guidance”.

At the time this report was prepared, E.ON SE was valued at £22.13 billion and had a price-earnings ratio of £13.47.

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