E.ON sees faster market recovery, keeps 2020 outlook

FILE PHOTO: Electric car parking place with the charging stations is seen at the front of the German utility E.ON headquarters in Essen, Germany, May 9, 2018. REUTERS/Wolfgang Rattay

FRANKFURT/DUESSELDORF (Reuters) - E.ON EONGn.DE, Germany's largest energy firm, on Wednesday said markets recovered faster than expected from the coronavirus crisis and kept its 2020 forecast.

“From today’s perspective, the current selective lockdown measures in E.ON’s core markets will not have a material impact on its full-year results,” the company said.

Nine-month adjusted earnings before interest and tax (EBIT) stood at 2.7 billion euros ($3.2 billion).

E.ON had to cut its full-year outlook in the summer due to the impact of the pandemic. It confirmed the revised forecast for adjusted earnings before interest and tax of 3.6-3.8 billion euros and adjusted net profit of 1.5-1.7 billion.

Frankfurt-listed E.ON shares EONGn.F were 2.5% higher.

“Solid report could help shares to bounce,” a Frankfurt-based trader said.

E.ON, which recently acquired the networks and retail business of former rival Innogy, also confirmed its mid-term target for dividends, expecting payouts per share to grow by up to 5% per year in the 2020-2022 period.

On a group level, the company added roughly 400,000 retail clients in the third-quarter. In Britain, where E.ON is restructuring its business, it lost about 200,000 clients, slides showed.

($1 = 0.8457 euros)

Editing by Michelle Adair and Louise Heavens