E.ON, the German utility company, has revised its forecast for the full year following an increase in adjusted earnings for the second quarter. This rise in earnings can be attributed to more stable wholesale energy prices.
The company now anticipates adjusted net income between 2.7 billion and 2.9 billion euros ($2.96 billion-$3.18 billion) in 2023, compared to the previous estimate of EUR2.3 billion-EUR2.5 billion.
Adjusted Ebitda is also expected to be in the range of EUR8.6 billion-EUR8.8 billion, an increase from earlier expectations of EUR7.8 billion-EUR8 billion.
In the second quarter, E.ON reported net profit of EUR1.16 billion, down from EUR1.43 billion during the same period last year. However, on an adjusted basis, net income rose to EUR1.28 billion from EUR730 million.
Adjusted Ebitda also experienced significant growth, rising from EUR1.28 billion to EUR2.95 billion. Sales for the quarter declined to EUR18.82 billion from EUR23.34 billion, primarily due to lower commodity prices compared to the previous year.
Chief Executive Leonhard Birnbaum acknowledged the challenges faced by the company last year due to high power and gas procurement costs. However, he expressed optimism about the current market conditions, stating, “Now we see that wholesale markets are calming down again. As announced, this will enable us to again lower prices for millions of power and gas customers.”
