E.on's renewable earnings rise

GERMANY: New wind capacity boosted E.on's renewable sales and earnings in the first half of the year, despite lower yields from its offshore projects.

Contributions from recently commissioned projects boosted sales in its renewables segment, E.on stated
Contributions from recently commissioned projects boosted sales in its renewables segment, E.on stated

Overall sales in the utility-developer’s renewables segment rose 4.3% from €710 million to €741 million in the first six months of 2018.

This was primarily due to higher output from new offshore and onshore wind farms, the company stated.

Capacity additions such as the 228MW Bruenning’s Breeze project in Texas, US, and the 306MW Radford’s Run site in Illinois, helped revenue from its onshore wind and solar assets increase 16% year-on-year from €389 million to €452 million.

Meanwhile, despite commissioning the 400MW Rampion project off the south-east coast of England, sales from its offshore wind and other renewable assets was down 10% from €321 million to €289 million.

E.on recorded lower yields at its offshore projects.

The renewable segment’s earnings (Ebitda) increased by 3% from €386 million to €396 million.

Offshore wind and other assets' earnings of €245 million —  a 20% rise year-on-year — made up the bulk of this. It offset the onshore wind and solar segment’s 17% fall in earnings, which totaled €151 million.

E.on said projects coming to the end of subsidy support schemes had reduced earnings in onshore wind and solar.

Investments in its renewables segment fell from €528 million to €449 million. This made up 31% of E.on group's total investments of €1.4 billion in the first half of the year.

Asset swap

E.on also announced a complex asset swap with RWE in the first half of the year.

It announced in July that it would own 86.2% of Innogy, following the completion of a voluntary public takeover offer.

The 9.4% stake it acquired from Innogy’s minority shareholders is in addition to the 76.8% stake it secured from parent company RWE.  

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