E.ON’s 2011 results were in line with its expectations. Sales rose by 22% year on year to about €113bn. The increase was due in particular to higher sales at the company’s Trading unit.
E.ON’s EBITDA of about €9.3bn was 30% below the prior-year figure. The principal reasons for the decline were an €2.5bn adverse effect relating the immediate shutdown of nuclear power stations in Germany and the nuclear-fuel tax, a roughly €1bn earnings reduction from E.ON’s power generation business in Europe, and a roughly €0.7 earnings reduction in the gas wholesale business due to continued margin pressure.
The earnings performance of E.ON’s growth businesses continued to be positive. The Renewables unit grew its EBITDA by 21% to around €1.5bn, mainly because of an increase in installed wind and solar capacity. Earnings in Russia improved by nearly 50% to about €0.6bn, owing primarily to an increase in generating capacity and wider power margins. Upstream gas earnings rose to roughly €0.8bn due to positive price and volume effects. In addition, E.ON’s ongoing efficiency-enhancement programs delivered lasting earnings effects totalling €0.4bn.