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Eon UK earnings from its supply business plummeted over 30 per cent from those reported last year due to lower sales over the mild winter months, the company said on Wednesday.
The UK arm of the German energy giant posted earnings of just £158 million for the first nine months of the year, a £78 million drop from the same period last year.
A statement from the company said the fall was due to lower energy demand over the UK’s mild winter which caused sales turnover on the supply side of its business to fall from £5.876 billion from January to September last year to £5.378 billion for the same period this year.
“Despite profits being down, from January to September we invested £50 million in our supply business,” Eon UK chief executive Tony Cocker said.
However, on the generation and upstream side of the business Eon posted earnings 16 per cent higher than last year, despite decreased sales turnover.
Eon said the significant growth in its North Sea oil and gas activities contributed to the £39 million increase in profits for this side of the business which rose to 281 million over the first three quarters of this year.
The generation side of the business remains under pressure due to the “difficult market conditions” which the fossil fuel fleet faces.
Eon’s investment in the generation fleet fell 6 per cent year on year to £432 million over January to September this year.
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