Profits rise at Eon

First half UK profits rose almost a quarter to £245 million, Eon said today, propping up profits from its EU operations outside of Germany. The firm said retail margins had improved. Eon UK sold marginally more electricity than in the same period last year, and more gas in the cooler second quarter.

Across the group, earnings before interest, taxes, depreciation and amortisation (ebitda) were up €2.4 billion year on year to roughly €6.7 billion. The firm said its renegotiations with Gazprom over long term gas contracts had added approximately €1bn to that figure.

Eon noted the UK government’s intention to develop a capacity market, and warned that it, alongside feed-in tariffs for generators, could affect its UK generation activities. The company also warned that different capacity mechanisms developed by individual member states could lead to market fragmentation.