OREANDA-NEWS. E.ON SE recorded EBITDA of roughly EUR3.6 billion in the first quarter of 2013, EUR0.2 billion below the prior-year figure.

Divestments reduced E.ON’s earnings by EUR0.2 billion, lower output and narrower margins in fossil-fueled generation by EUR0.1 billion compared to the prior-year period. Earnings were positively affected by EUR0.1 billion in cost savings delivered the E.ON 2.0 efficiency-enhancement program and by higher earnings at the Renewables segment, which resulted mainly from an increase in installed generating capacity.

E.ON’s underlying net income declined from EUR1.7 billion in the prior-year period to EUR1.4 billion. Alongside the above-described EBITDA effects, this reflects a normalization of the company’s tax rate. The decline was partially counteracted by slightly lower depreciation charges and interest expenditures.

The E.ON Group’s first-quarter investments declined by 21 percent year on year to EUR0.9 billion. Its operating cash flow of EUR1.6 billion was considerably higher than the prior-year figure of EUR0.4 billion.

E.ON’s economic net debt stood at EUR31.6 billion at March, 31, 2013, a decline of EUR4.3 billion from the figure at year-end 2012. The main reason for the improvement was that divestment proceeds and positive operating cash flow significantly surpassed investment expenditures. Net financial debt declined to EUR10.4 billion as of the first-quarter balance-sheet date.

E.ON expects its full-year 2013 EBITDA to be between EUR9.2 and EUR9.8 billion. This forecast factors in the loss of earnings streams through asset sales under the company’s ongoing divestment program. E.ON expects its 2013 underlying net income to be between EUR2.2 and EUR2.6 billion.