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Profits rise at E.ON

11 March 2004 – E.ON, Germany’s largest utilities group, recorded a 67 per cent increase in net profits to around €4.6bn ($5.6bn) last year and will increase its dividend by 14 per cent to €2 per share for 2003. The company is now the world’s largest privately owned energy group.

Turnover rose by 27 per cent to nearly €46.4bn compared with 2002, while ebit was up 34 per cent at roughly €6.2bn. Management predicts a further ebit increase for 2004, but has warned that net profits will fall because the group registered high gains from the sale of activities last year.

Chairman Wulf Bernotat has revealed that E.ON is examining whether to invest in electricity generating activities in Russia and that Ruhrgas, the group’s gas subsidiary, is bidding for a majority stake in state-owned Romanian gas company Distrigaz. Mr Bernotat has also confirmed that E.ON is interested in constructing a power station in Italy.