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E.ON flags market recovery after energy crisis

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E.ON, Europe's biggest operator of energy networks, has stated that the market environment for its business is improving significantly following last year's energy crisis, indicating a more positive outlook for the future.

A shareholder carries a bag with the logo of E.ON during the company's annual shareholders meeting in Essen, Germany May 10, 2017. REUTERS/Thilo Schmuelgen/File Photo, Europe's biggest operator of energy networks, on Wednesday said the market environment for its business was improving significantly following last year's energy crisis, sounding a more optimistic tone about the months ahead.

"After a long period of crisis, we sense that the headwinds for our business are diminishing. We see our markets increasingly recover," Chief Executive Leonhard Birnbaum said. He said that E.ON would pass on lower power and gas costs to millions of its customers, which will weigh on profits but comes in response wholesale prices bouncing back from record levels seen last year after Russia cut gas deliveries to Germany.

E.ON, which intends to invest 33 billion euros in the 2023-2027 period, confirmed its outlook for the current year, still expecting adjusted core profit of 8.6 billion to 8.8 billion euros.

 

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