Energy giant EON earns €3 billion in first half of 2008

Energy giant EON earns €3 billion in first half of 2008
Photo: DPA
German utilities giant EON made a profit of more than three billion euros in the first six months of the year, it said on Wednesday, as it reaped the benefit of higher electricity prices.

The eight percent increase in net income to €3.3 billion ($4.9 billion) was even higher than expected, with analysts expecting €3.2 billion.

The company, which has operations across Europe, also reported better-than-expected operating profit of €5.8 billion, up six percent. Sales rose 16 percent to €41.2 billion.

EON also raised its net profit forecast for the year, saying it now expects 2008 net profit to be between five and ten percent higher than in 2007 – up from its earlier forecast of only a slight rise.

“We now have a European platform for profitable, primarily organic growth that’s unmatched by any other company in our industry,” EON said. “Our investments in new power plants across Europe will enable us to systematically seize the earnings and growth opportunities of European energy markets.”