Aug. 8 (UPI) — With results from the first half of the year in, German energy company E.ON is supported by the divvying up of renewable energy entity Innogy, analysis finds.
The Germany company reported Earnings Before Interest and Taxes, a proxy for profitability, at $ 1.9 billion for the first half of the year, up 10 percent from the same period in 2017. Adjusted net income improved 19 percent.
Plans of a complex agreement to divide up pieces of Innogy between E.ON, one of the country’s largest renewable energy investors, and RWE, one of Germany’s biggest power producers, were unveiled in March.
E.ON last month said 9.4 percent of shareholders in Innogy agreed to sell their shares to E.ON, giving it an 86.2 percent stake in the company after taking RWE’s majority stake. E.ON is retooling its portfolio in the German energy market as the country charts a path to become a regional leader in renewable energy development.
“The new E.ON will be an even more powerful company, a company focusing on smart grids and innovative customer solutions and fully dedicated to serving its customers,” Chief Financial Officer Marc Spieker said in a statement.
In its second half announcement, the company said sales from its renewable energy segment improved 4 percent to $ 859 million. Most of the sales were attributable to increased output from new wind farms installed by the company.
Analysis from RBC Capital Markets found the division of Innogy was supportive of E.ON’s bottom line.
“We believe this creates a more stable long-term business with opportunities for significant synergies and steady growth,” its emailed analysis read.