Energy price cap hits Eon’s UK business hard as sales fall six per cent
The government’s energy price cap put a dampener on Eon’s revenues in the first three months of the year, it revealed this morning.
The figures
UK sales decreased by six per cent to €153m (£132m), the company said, adding it had been hit by a triple-whammy including lower energy prices and reduced sales volumes.
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Meanwhile overall sales, including in its German home market, rose five per cent to €9.2bn, while operating earnings before taxes fell 10 per cent to €997m.
Adjusted earnings before interest and tax fell eight per cent to €1.2bn, while adjusted net income hit €650m, a 10.5 per cent reduction.
Why it’s interesting
UK energy suppliers have all faced a tough opener to the year after Ofgem capped the amount they could charge for their default tariffs, promising savings to customers.
Eon’s announcement came alongside another update from British Gas owner Centrica this morning, saying its business had taken a £70m hit from the price cap.
It remains to be seen whether pressure will ease after Ofgem hiked the level of the cap at the beginning of the April.
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What Eon said
“Aside from the special case of the United Kingdom, our core businesses delivered a solid performance. We can therefore unequivocally reaffirm our forecast for the 2019 financial year,” said chief financial officer Marc Spieker.
“We … reaffirm our dividend proposal of 46 cents per share for the 2019 financial year,” he added.