Could green returns be waving here?

Last Updated: 5. November 2023By

The Energy Transition is transforming the entire country. Years ago, E.ON set the course for the future by separating its traditional power plant division. But how is the company performing in the current situation? Are 4.7% dividend yields a good argument? We’ll do the check for you! E.ON SE is one of the largest energy providers in the world.

In 2016, the company split up. The core business of conventional energy production is now carried out by the spun-off company Uniper. E.ON is focusing on energy networks, renewable energies and customer solutions.

There is much to be said about E.ON. In the first half of the year, the company generated a turnover of €52.4 billion, a decrease of 0.9%. The profit was halved to €1.2 billion. However, the adjusted profit, excluding non-operating effects, increased by 63% to €2.3 billion. Non-operational effects of €2.2 billion were affected due to the correction of unrealized sales and procurement transactions by declining price developments. This is the main difference between profit and adjusted profit.

The reporting has been adjusted. With the termination of the PreussenElektra generation activities and the decommissioning of the Neckarwestheim 2 and Emsland nuclear power plants, these results have been classified in the non-operating area since the beginning of the year. The turnover from the energy networks rose by more than a quarter. The customer solutions division increased by around €1 billion, other divisions were down. Cash flow fell by more than €2 billion to -0.24 billion. Personnel expenses increased by €255 million due to tariff adjustments and higher staff numbers. In order to ensure customer satisfaction, the price cuts in the wholesale market were passed on to companies and consumers in the short term.

The company has secured long-term liquidity through the issuance of two bonds for an amount of €1.8 billion. With the new appointment of Erich Clementi as chairman of the supervisory board, no major changes are expected.

A ray of hope in difficult times The management has raised its forecast for the financial year. An adjusted profit of €2.7 to €2.9 billion is forecast. This operational success is combined with long-term liquidity and constant cash flows, and is decisive for us to have a positive opinion of the share as well. The dividend is an extra bonus on top! This share is currently one of the few rays of hope!