In light of the corona crisis,
Their reliability and continuous availability is of paramount importance for health care, public order, and people everywhere. We will do everything in our power to ensure supply security, even in this situation. Despite the difficult times, more than 14,000 of our employees are working for our customers in our networks and at our production facilities. Policymakers and the general public can count on us in this period as well.' Teyssen affirmed that the company would join other utilities to support the
Teyssen also addressed the corona crisis's possible implications for the company: 'Overall, the energy industry doubtless won't be as hard hit as other industries. But will still expect the crisis to leave its mark on our bottom line. Industrial and commercial customers are consuming noticeably less energy. This will have a temporary impact our network and sales businesses. There may be delays in our ability to deliver energy infrastructure projects.' E.ON also anticipates a temporary decline in demand at its B2B business as well. After the current crisis, however, network expansion and the installation of climate-friendly energy infrastructure will surely be even more crucial. 'E.ON is confident that it will be able to overcome the current challenges, even if it's not yet possible to make a serious estimate of how long the crisis will last or how severe its repercussions will ultimately be. We're robust and resilient. We stand for supply security, even in this challenging situation. And we'll remain a reliable partner for our customers and the general public.'
Centerpiece and value driver of the new E.ON's business model: sustainability.
The new E.ON's business model focuses on customer-oriented energy infrastructure for the distributed and digital energy world that is crucial for the energy transition's success. Its centerpiece is sustainability. Teyssen said: 'Our new focused business model enables us to benefit from the megatrends of decarbonization, distributed solutions, and digitization. Our company has set clear climate targets: E.ON itself will be climate-neutral by 2040, and we'll supply our customers with climate-neutral energy by 2050. In addition, we offer our customers cutting-edge solutions to reduce their carbon intensity. This too is part of our commitment to corporate social responsibility. Our new business model will make E.ON more predictable and more resilient, which is significant advantage in times of growing uncertainty.'
Review of the 2019 financial year: targets achieved
The innogy takeover was the predominant feature of the 2019 financial year, in which the
E.ON's core operating businesses-Energy Networks and Customer Solutions-both posted solid earnings. Energy Networks' adjusted EBIT of
E.ON's 2019 earnings for the first time include
Infrastructure: E.ON to invest billions in distributed energy and climate protection.
Going forward, 90 percent of E.ON's investments into its core business will go toward customer-oriented energy infrastructure, namely in local and regional energy networks and helping E.ON's customers expand their own distributed energy infrastructure. Moreover, the innogy takeover increased the proportion of E.ON's earnings generated by regulated businesses from about 65 percent to about 80 percent. 'We're going to expand our predominantly regulate power asset base by 3 percent to 5 percent annually. This makes us particularly attractive to long-term, sustainability-oriented investors', CFO
'The energy system is becoming increasingly complicated, which will create the need for additional investment in eMobility, the electrification of heating systems, further decarbonization, and energy storage. Consequently, the energy transition represents a major, multi-year investment opportunity for our local energy networks. It will enable us to further strengthen our position as a leading network operator. The implementation of the European Green Deal will accelerate these developments', Teyssen explained.
Dividend: operating business to provide solid foundation for reliable dividend year after year
In line with the company's current dividend policy, the E.ON SE Management Board and Supervisory Board intend to recommend that shareholders be paid a dividend of
The integration of innogy will be the key characteristic the current year. E.ON expects synergies of
The E.ON Management Board anticipates that the 2020 financial year, the first full year to include innogy, will see the company post another earnings increase, although it has not yet factored in the possible implications of the corona crisis. E.ON expects the Group's adjusted EBIT to be between
This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.
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