Eon, the German utility, recorded a net loss of €16bn for 2016 — the largest in its history — and unveiled ambitious measures to reduce debt by €7bn through asset sales and cutting 1,300 jobs. The loss reflected impairments on Uniper, the new fossil fuel power company spun out of Eon last year, as well as payments Eon is having to make into a new state fund to cover the cost of disposing of and storing Germany’s nuclear waste. But it said its balance sheet for 2016 would be the “last to reflect the burdens of the past”, leaving the company free to focus on its three core businesses — energy networks, customer solutions and renewables.
FT 15th March 2017 read more »
E.ON will shed assets and cut 1,300 jobs to reduce its 26-billion euro (22.65 billion pounds) debt pile, it said on Wednesday, after reporting its biggest-ever net loss, one of the biggest in German corporate history. The record loss and expectations the energy group will soon make a decision on whether to sell new shares to raise money for nuclear waste provisions hit its stock price, which was down 2.5 percent by 1247 GMT. E.ON said its 16 billion euros net loss for 2016 was partly because of major impairments on conventional power plants that are now bundled in Uniper, which E.ON spun off last year. “This complete break with the past left deep marks on our balance sheet and equity. But from a balance-sheet perspective, it really is a clean break,” Chief Executive Johannes Teyssen told reporters at the group’s annual press conference.
Reuters 15th March 2017 read more »