By Christoph Steitz and Tom Käckenhoff
FRANKFURT (Reuters) -E.ON, Europe’s largest energy networks operator, expects to hit the upper end of its profit outlook in 2023, boosted by strong first-quarter results that it said reflected a broad sector recovery following last year’s crisis.
That recovery, which follows a major reshuffle of Europe’s energy sector in the wake of the Ukraine war, also included falling power prices, which had a positive, yet temporary, impact on E.ON’s first-quarter results.
Shares in the group, which is one of the shareholders in the defunct Nord Stream gas pipeline, were down 1%, with traders also citing profit-taking following a 30% advance in the stock since the beginning of the year.
“The crisis is not over yet. Compared with the current market environment, our forecast also factors in the possibility of a further deterioration in the remainder of the year,” Chief Financial Officer Marc Spieker said.
The group expects to hit the upper end of its outlook, which forecasts adjusted core profit (EBITDA) of 7.8 billion euros to 8.0 billion euros ($8.6 billion to $8.8 billion) and adjusted net profit of 2.3 billion to 2.5 billion euros in 2023.
First-quarter adjusted core profit (EBITDA) was up 30% at 2.7 billion euros, the company said, adding investments in the first three months grew by the same percentage to 1 billion.
($1 = 0.9084 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Additional reporting by Zuzanna Szymanska; Editing by Friederike Heine, Miranda Murray and Jane Merriman)
