Eon UK Returns to Profitability for First Time Since 2020
Eon’s UK division has reported a significant turnaround, swinging from a loss of £659 million to a pre-tax profit of £49 million in 2023, according to recent filings with Companies House. This resurgence accompanies a notable increase in turnover, rising from £2.862 billion to £3.385 billion over the same period.
The company attributes its return to profitability primarily to the previous year’s impairment of investments in subsidiaries, amounting to £663 million, partially offset by dividends received totaling £120 million.
Key projects contributing to Eon UK’s performance include a London-based district heating initiative, generating £4 million in turnover despite a £2 million pre-tax loss. The division’s structured trading segment, involved in wind farm power procurement and renewable trading activities, also saw turnover rise to £3.381 billion from £2.858 billion. This increase was largely driven by enhanced revenues from wholesale power and gas supply contracts, along with the provision of renewables obligation certificates.
Improved market conditions bolstered the structured trading segment, which reported a pre-tax profit of £140 million, a notable turnaround from a loss of £81 million in the previous year. Conversely, central support services, providing facilities management and other corporate functions to Eon’s UK operations, recorded a pre-tax loss of £89 million, down from £578 million in 2022, which included an investment impairment offset by subsidiary dividends.
Looking ahead, Eon anticipates sustained operational activity in structured trading and other segments throughout 2024, with expectations for reduced activity in the UKS segment following the anticipated sale of its district heating scheme to an intra-group entity.
In March, the broader Eon group reported a decline in sales from €115.6 billion to €93.6 billion in 2023, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased from €8 billion to €9.3 billion.
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Eon UK Returns to Profitability for First Time Since 2020
Eon’s UK division has reported a significant turnaround, swinging from a loss of £659 million to a pre-tax profit of £49 million in 2023, according to recent filings with Companies House. This resurgence accompanies a notable increase in turnover, rising from £2.862 billion to £3.385 billion over the same period.
The company attributes its return to profitability primarily to the previous year’s impairment of investments in subsidiaries, amounting to £663 million, partially offset by dividends received totaling £120 million.
Key projects contributing to Eon UK’s performance include a London-based district heating initiative, generating £4 million in turnover despite a £2 million pre-tax loss. The division’s structured trading segment, involved in wind farm power procurement and renewable trading activities, also saw turnover rise to £3.381 billion from £2.858 billion. This increase was largely driven by enhanced revenues from wholesale power and gas supply contracts, along with the provision of renewables obligation certificates.
Improved market conditions bolstered the structured trading segment, which reported a pre-tax profit of £140 million, a notable turnaround from a loss of £81 million in the previous year. Conversely, central support services, providing facilities management and other corporate functions to Eon’s UK operations, recorded a pre-tax loss of £89 million, down from £578 million in 2022, which included an investment impairment offset by subsidiary dividends.
Looking ahead, Eon anticipates sustained operational activity in structured trading and other segments throughout 2024, with expectations for reduced activity in the UKS segment following the anticipated sale of its district heating scheme to an intra-group entity.
In March, the broader Eon group reported a decline in sales from €115.6 billion to €93.6 billion in 2023, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased from €8 billion to €9.3 billion.
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