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UPDATE 1-E.ON expects core profit to rise this year and next
March 14, 2012 / 7:28 AM / 6 years ago

UPDATE 1-E.ON expects core profit to rise this year and next

* Sees 2012 EBITDA at 9.6-10.2 bln eur, div of 1.10 eur/shr

* Keeps 2013 outlook for EBITDA of 11.6-12.3 bln eur

* Shares indicated 1.6 pct higher, DAX seen up 0.5 pct (Adds details, background)

DUESSELDORF, Germany, March 14 (Reuters) - E.ON , Germany’s top utility, expects its renewable energy business and foreign expansion to help lift core profit this year and next after Germany’s decision to phase out nuclear power led to a net loss for 2011.

Chief Executive Johannes Teyssen said on Wednesday the company was pleased with the growth in its renewable unit -- spanning wind, solar and hydro power -- where core profit rose by 21 percent to 1.5 billion euros ($1.97 billion) in 2011.

E.ON said it expects earnings before interest, tax, depreciation and amortisation (EBITDA) of 9.6-10.2 billion euros this year, and underlying net profit of 2.3-2.7 billion in 2012.

It also said in plan ned to pay a dividend of 1.10 euros for 2012, up from 1 euro for 2011, when it posted a net loss of 2.22 billion euros , mainly due to Germany’s nuclear exit.

Germany’s move to phase out nuclear power by 2022 had led peers RWE and EnBW -- the country’s No.2 and No.3 utilities -- to post either large declines in profits or losses for the past year and also forced them to enter new business areas more aggressively.

“We’re currently also talking to potential partners in Turkey and India about opportunities for cooperation,” Teyssen said, adding concrete results were expected in the course of 2012.

E.ON said in January it will team up with Brazilian billionaire Eike Batista to build the largest privately held network of power plants in Brazil, as it bets on emerging markets amid stagnant growth in Europe.

As part of the deal, it paid 850 million reais ($473 million) for a 10 percent stake in Batista-controlled MPX Energia.

E.ON also kept its 2013 forecast on Wednesday, saying it still expects EBITDA of 11.6-12.3 billion euros, underlying net profit of 3.2-3.7 billion, and a dividend of at least 1.10 euros. ($1 = 0.7628 euros) ($1 = 1.7970 Brazilian reals) (Reporting by Christoph Steitz)

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