Eon reports improved results following UK restructure

Eon has cited the successful restructure of its UK business as one of the reasons behind its improved overall results in the first quarter of 2021.

The German-based company issued a Q1 update today (11 May) in which it revealed group adjusted earnings before interest and tax increased by around €200 million year on year to €1.7 billion, primarily because of the Customers Solutions business.

Customer Solutions segment earnings almost doubled compared to the same period last year, improving by almost €300 million. Eon said a weather-related increase in gas sales volume and the successful restructuring in the UK were key factors.

Last week it was announced that all 2.9 million Npower customers had been migrated over to Eon Next, supported by Octopus Energy’s Kraken platform.

“Eon is therefore confident that it will already achieve its target of surpassing £100 million in earnings this financial year and thus one year earlier than planned,” the company said.

Customer Solutions’ sales rose by more than €0.4 billion to €14.8 billion, primarily due to the sales business in Germany. However lower sales in the UK resulting from a decline in customer numbers and lower prices partially offset the overall sales increase.

Furthermore Customer Solutions invested 20 per cent less than the previous year due to a postponement of investments in UK smart meters as a result of the pandemic.

During a presentation of the company’s results Eon chief financial officer Marc Spieker said the business was “off to a successful start in the new year”.

He added: “All our businesses delivered a strong operational performance in the first quarter. This gives us a lot of confidence for the remainder of the year.

“I can therefore fully affirm our forecast for 2021, our medium-term financial and earnings plan, and our dividend promise.”