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.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
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.
For more details, visit the original article.
