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Eon profits fell in the first quarter of 2014 as mild winter weather led to lower energy consumption, the German utility reported on Tuesday.
In UK energy supply, earnings before interest, tax, depreciation and amortisation (Ebitda) fell 17 per cent from the previous year to £177 million. Investment into the business, mainly in smart meters, nearly doubled to £20 million.
In UK power generation and upstream oil and gas, Ebitda jumped 60 per cent to £133 million, boosted by output from the London Array offshore windfarm, which opened last summer. However, Eon UK chief executive Tony Cocker noted tough market conditions “continue to affect the profitability” of gas-fired power stations.
Across the group, Ebitda was down 12 per cent to €3.2 billion (£2.6 billion). The drop was attributed to “a continued difficult business and regulatory environment” and some divestments.
The renewables business bucked that trend, with a 20 per cent rise in Ebitda. The group cut net debt by €1.1 billion (£0.9 billion), which chief financial officer Klaus Schafer said allowed it to continue to make target investments in wind and solar power.
Schafer said: “Eon is staying on course in difficult times. We’re reducing our debt and costs, without neglecting investments in our future.”
In the UK, Eon expects to open its Blackburn Meadows biomass plant this year and start a second phase of construction for its Humber Gateway offshore windfarm.
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