E.ON to hit upper end of 2023 outlook after strong Q1

FRANKFURT (Reuters) -E.ON, Europe’s largest energy networks operator, expects to hit the upper end of its profit outlook in 2023, boosted by strong first-quarter results that it said were the result of a broad sector recovery following last year’s crisis.

“The crisis is not over yet. Compared with the current market environment, our forecast also factors in the possibility of a further deterioration in the remainder of the year,” Chief Financial Officer Marc Spieker said.

The group expects adjusted core profit (EBITDA) of 7.8 billion euros to 8.0 billion euros ($8.6 billion to $8.8 billion) and adjusted net profit of 2.3 billion to 2.5 billion euros in 2023.

E.ON, one of the shareholders of the idled Nord Stream pipeline that was damaged in an act of sabotage last year, benefited from lower gas prices that reduced the company’s procurement costs.

First-quarter adjusted core profit (EBITDA) was up 30% at 2.7 billion euros, the company said, adding investments in the first three months grew by the same percentage to 1 billion.

The current crisis is an accelerator on our path to a climate-friendly energy future,” Spieker said. We will continue to invest heavily in this area.

($1 = 0.9084 euros)

(Reporting by Christoph Steitz, Editing by Friederike Heine and Miranda Murray)