German E.ON sees earnings down in 2022, Nord Stream 1 risk

By Christoph Steitz and Tom Käckenhoff

ESSEN, Germany (Reuters) – E.ON, Germany’s biggest energy company, expects core profits to fall this year due to the phasing out of nuclear power, and said on Wednesday that the war in Ukraine could affect the value of its stake in the Nord Stream 1 gas pipeline.

The company said it expects adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of 7.6 billion to 7.8 billion euros ($8.3 billion to $8.6 billion ), compared to 7.9 billion in 2021.

This takes into account the lack of profits from E.ON’s nuclear power plants, most of which were halted by Germany’s nuclear phase-out roadmap, now underway, but which still contributed 1 .6 billion euros to adjusted EBITDA in 2021.

E.ON shares are expected to open 2.6% higher in premarket trading on what a Frankfurt-based trader called a “strong outlook.”

The company has always said its 2022 earnings forecast is subject to future developments surrounding the Russian-Ukrainian conflict, the extent of which is currently impossible to determine but carries several risks.

“E.ON primarily perceives the risks for the commodity markets and the associated credit and liquidity risks as well as the valuation risks for the investments, among others the stake in Nord Stream AG,” the group said.

E.ON, Europe’s largest energy network operator, holds through its pension fund a 15.5% stake in Nord Stream 1, which is majority-owned by Gazprom and is the main route through which Russian gas is currently transported. to Germany.

Other co-shareholders in the pipeline include the German oil and gas group Wintershall Dea, the Dutch company Gasunie and the French Engie.

($1 = 0.9115 euros)

(Reporting by Christoph Steitz, editing by Emma Thomasson and Sherry Jacob-Phillips)

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