German utility E.ON sees renewable sector growth

German utility E.ON sees renewable sector growth
UPI

May 8 (UPI) — In a market transitioning in a low-carbon way, German utility E.ON said Tuesday that its renewable energy segment saw earnings rise 7 percent.

Adjusted net income for the first quarter was up 38 percent from the same period last year to $862 million. Its renewables division saw earnings increase by about 7 percent to $203 million.

Across the board, the utility company said it added tens of thousands of customers in a German energy market leaving nuclear options behind. In the wake of Japan’s nuclear disaster in 2011, German Chancellor Angela Merkel ordered eight of the country’s 17 nuclear reactors closed by the end of that year and a total shutdown by 2022.

Now, Germany as a whole has one of the greener economies in Europe.

“We achieved significant growth by adding more than 50,000 customers in Germany,” Chief Financial Officer Marc Spieker said in a statement. “This is a fine achievement by the colleagues at our sales business and demonstrates that customers trust us.”

E.ON in March concluded an agreement in principle with German energy company RWE to acquire more than three quarters of the stakes in renewable energy entity Innogy, an offshoot from RWE. In April, E.ON made a final voluntary takeover bid for Innogy, which it said would give Innogy shareholders a significant premium.

From its viewpoint, RBC Capital Markets said E.ON’s results look relatively conservative, but the longer focus would be on what happens with the Innogy takeover.

“We are supporters of the carve-up of Innogy by E.ON and RWE,” RBC’s emailed commentary read. “We believe this creates a more stable long-term business with opportunities for significant synergies and steady growth.”

.