OREANDA-NEWS. The E.ON Group's businesses performed as anticipated in the first quarter of 2014. Owing to a continued difficult business and regulatory environment and in the wake of divestments, E.ON's EBITDA declined by 12 percent year on year to EUR 3.2 billion, its underlying net income by 13 percent to EUR 1.2 billion. By contrast, operating cash flow rose by EUR 1 billion to EUR 2.6 billion, primarily owing to positive developments in working capital. E.ON continues to expect full-year 2014 EBITDA of EUR 8 to EUR 8.6 billion and underlying net income of EUR 1.5 to EUR 1.9 billion.

E.ON CFO Klaus Schafer said: “E.ON is staying on course in difficult times. We're reducing our debt and costs, without neglecting investments in our future.” In the first quarter of 2014 E.ON lowered its net debt by more than EUR 1 billion. As planned, it is also reducing its controllable costs - this year by another EUR 300 million. “This gives us the flexibility to make targeted investments in growth businesses like wind and solar power,” Schafer pointed out. The Renewables segment recorded first-quarter earnings of nearly EUR 600 million, 20 percent more than last year.

E.ON is further enlarging the proportion of renewables in its generation portfolio by building Amrumbank West, an offshore wind farm located north of the island of Helgoland in the North Sea. The first foundations were installed in January. When completed in 2015, Amrumbank West will have 288 megawatts of capacity, enough to power up to 300,000 households. Earlier this year E.ON also launched Next Generation, a project to combine its renewable and conventional generation businesses into a single segment, creating a leaner organization in which all generation technologies work together efficiently. “All of E.ON is working systematically to establish a balanced generation portfolio and significantly leaner organizational setup,” Schafer said.