E.ON Reduces Debt With Proceeds on Disposals

While coming up dry in the Norwegian Sea, E.ON confirmed its intention to sell assets to reduce debt. The German company also posted half-year EBITDA of €4.3 billion (-13% with respect to last year). 

‘E.ON continues to expect its full-year 2015 EBITDA to be between €7 and €7.6 billion and its underlying net income to be between €1.4 and €1.8 billion. In line with the company’s expectations, at the half-year mark both earnings metrics were below the respective prior-year figures’ reads a note released on Wednesday. 

E.ON also reduced debt by €4.1 billion. Earlier this month, E.ON agreed to sell its Italian hydroelectric complex in Terni to ERG Power Generation S.p.A.

‘Substantial operating cash flow in the first half of the year, proceeds on disposals, and lower provisions for pensions due to higher interest rates were among the factors that enabled E.ON to significantly reduce its economic net debt to €29.3 billion’ the company explained. 

In August 2014, E.ON confirmed its 2014 EBITDA targets, despite a significant year-on-year decline. In that occasion, the company’s EBITDA declined from €5.7 to €5 billion, underlying net income from €1.9 to €1.5 billion.

Also on Wednesday, the Norwegian Petroleum Directorate said that E.ON did not find any oil or gas in the Skarv field.  

‘E.ON E&P Norge AS has completed drilling wildcat well 6507/3-11 S. The well was drilled about 12 kilometres east of the Skarv field in the Norwegian Sea. The well is dry’ reads the press release.