Eon has reported a doubling of its UK pre-tax profits in its half year financial statement.
The energy firm reported that sales in the UK rose by €2.3 billion (£2 billion) to €14.6 billion (£12.6 billion), with its adjusted EBITDA soaring by €487 million (£420 million) to €839 million (£724 million).
The firm said the uptick in profits was mainly due to “regulatory price adjustments, optimisation in energy procurement, and a recovery in the business customer segment”.
Across the group adjusted EBITDA was €5.7 billion (£4.9 billion).
Eon group chief executive Leonhard Birnbaum said: “With very strong financial and operating half-year results, Eon continues to deliver robustly.
“We have significantly increased our earnings and continue to speed up our investments in the energy transition.”
He added: “In the Customer Solutions business, we see the effects of an increasingly normalising market environment.
“Last year’s results were heavily impacted by the high energy prices on the wholesale market.
“Due to this positive development, we keep our promise: Eon has and will further reduce prices for millions of our electricity and gas customers by late summer.”
Eon is the latest company to announce bumper profits in its half year results.
Last month, British Gas recorded record profits of almost £1 billion. The figure is almost 900% higher than the same period in 2022 when it posted a £98 million profit.
British Gas’ reported profits were heavily criticised, with End Fuel Poverty Coalition coordinator Simon Francis labelling it a “sign of a broken energy system”.
Earlier this week, a report by Future Energy Associates (FEA) concluded that energy retailers could make £1.74 billion of profit over the next 12 months thanks to high wholesale costs and allowances in the price cap.
Under the current price cap suppliers have Earnings Before Interest and Taxes (EBIT) and Headroom Allowance Percentage (HAP) allowances for profit margin. These are set as a fixed percentage of wholesale costs of 1.9% for EBIT and 1.5% for HAP.
This, the report said, has resulted in a notable increase in supplier profits over the last year.
Ofgem has consulted on amending the rates of return for suppliers. Under these proposals, the EBIT allowance would rise by approximately £10 for the next cap in October, taking it to c£47, equating to 2.4% of the full price cap level in that period.