E.ON Reports 12% EBITDA Decline

Germany’s E.ON confirmed its 2014 EBITDA targets, despite a significant year-on-year decline.

‘As anticipated, E.ON’s half-year earnings figures were below the prior-year level: EBITDA declined from €5.7 to €5 billion, underlying net income from €1.9 to €1.5 billion. The decline in EBITDA is almost entirely attributable to changes in E.ON’s portfolio and adverse currency-translation effects in numerous European markets and in Russia,’ the company wrote on Wednesday.

The German company said it acquired new residential customers, it increased efficiency in the Exploration & Production segment on higher production at its fields in the North Sea. 

According to the company, the drop in the rouble is the main reason for the result, but it did not explain how it intends to reach the 2014 target in case of a further weakening of the Russian currency. 

The rouble has dropped 7% against the euro so far this year.