Eon profits rose sharply in the first three months of 2018 despite a decline in earnings from its UK retail arm, the company has reported in its first quarter results.
At the group level, adjusted earnings before interest and tax (EBIT) were up 24 per cent at €1.3 billion, whilst adjusted net income increased by 38 per cent to €525 million.
Tariff hikes and increased demand for gas in the cold winter weather led to an 11 per cent increase in sales from the company’s retail operations in the UK which totalled €2,391 million.
Nevertheless, there was a 7.5 per cent fall in adjusted EBIT to €148 million to due to “changes in the accounting treatment of grid usage costs” during the period.
Eon chief financial officer Marc Spieker said: “The first quarter seamlessly continued our positive performance of last year. Our operating business is strong.”
He continued: “All the key figures and developments for the entire group are in line with our plan, and we therefore affirm our forecast for full-year 2018.”
The company expects full-year adjusted EBIT to come in at between €2.8 and €3 billion, and adjusted net income at between €1.3 and €1.5 billion.