E.ON's bottom line hit but revenues up

German energy producer E.ON yesterday posted a 12 per cent drop in second-quarter pre-tax profits, despite rising revenues.

The fall in profits was blamed in part on the sale of its ultra high-voltage transmission system and lower earnings in its gas business.

E.ON said it earned a total of €1.63 billion (1.34bn) in the April-to-June period, down from €1.85bn a year earlier. Revenues were up 15 per cent to €18.62bn.

The Dsseldorf-based firm, which operates in the UK, left its full-year earnings forecast unchanged "in view of the continued uncertainty of its energy-policy environment and, particularly, in view of the future earnings development in its gas business".

That forecast calls for full-year adjusted pre-tax profit to increase by between 0 and 3 per cent and for adjusted pre-tax profits to match last year's figure.

Chief executive Johannes Teyssen said: "E.ON remains on course by continually improving our performance, further streamlining our business portfolio, and investing in our operating business."