Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on E ON SE. We currently have 14 research reports from 1 professional analysts.
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E ON SE
E ON SE
A 10% capital placement achieved, providing €1.34bn
17 Mar 17
The company has provided the terms related to the capital measures taken and has opted to go for the maximum amount expected, that is a 10% capital increase with the issuance of 200.1m shares. The capital increase has been accomplished at an estimated price of €6.70/share, with the company receiving the proceeds from the transaction close to €1.34bn. The placement has been reserved only to institutional investors through a private placement. Delivery and settlement is expected to occur on or close to 22 March 2017.
Good adjusted results. Balance sheet weakens: capital measures, asset sales, scrip dividends
15 Mar 17
In 2016, revenues decreased by 11% yoy to €38,173m, with the adjusted operating profit and net income decreasing as well, but beating expectations at €3,112m and €904m respectively (-13% and -16% respectively). The dividend proposed for 2016 is €0.21/share, which is in line with forecasts. On a reported basis, the group booked a combined net income loss of €16bn, of which -€8.4bn is attributable to E.On’s shareholder, driven by around €11bn in impairment charges. The equity attributable to E.On shareholders finished on the negative side at -€1.05bn, while the net debt of the group is higher than expected at €26.3bn, confirming the weak balance sheet situation of the company. For 2017, the group expects adjusted operating profit at the lower range of expectations of €2.7-3.1bn, implying a further expected decrease in 2017’s operating profit. However, guidance for net income and dividend payments are better than expected at €1.2-1.45bn and €0.30/share respectively. Nonetheless, the payment of the €2bn risk premium on the nuclear fund transfer will be financed through capital measures such as a capital increase of up to 10%, and the issuance of hybrid bonds as the transfer needs to come from equity and not debt. The company is targeting to reduce net debt. It has decided to reduce its investment budget by 20% and could sell Uniper’s stock, sell additional assets and a possible scrip dividend payment.
Uniper depreciation and nuclear provisions put pressure on E.On’s capital levels
09 Nov 16
E.On has published its Q3 16 results with adjusted operating profit falling 4% yoy to €2.3bn and adjusted net income falling by 8.3% yoy to €641m. Net economic debt (including provisions) is up 10.8% yoy to €23.6bn. On a reported basis, revenue fell 12% yoy to €28.2bn and the consolidated net loss reached -€9.3bn, of which -€3.95bn for E.On’s shareholders and -€5.35bn for minority interests (mainly attributed to Uniper). The group confirmed its full-year guidance of adjusted EBIT at €2.7-3.1bn and net income of €6.1-1bn. The equity levels of E.On have reached €433m after depreciations and mark-to-market measures, down from €16.4bn a year ago.
Uniper spin-off achieved; valuation gap confirmed
13 Sep 16
The much awaited spin-off of Uniper from E.On has been finally completed with the listing of the company on the Frankfurt stock exchange. Conventional generation (including Swedish nuclear) and the commodity-driven unit (with trading and Russian E&P) have started trading at €10.01/share, which values the company at €3.66bn, although the stock rose 3% throughout the day and finished trading at €10.3/share, translating into a market cap of €3.77bn. E.On issued 365.95m new shares, as E.On shareholders received one Uniper share for 10 E.On shares. 53% of this share number was given to E.On’s shareholders, while the company kept 47%. “New E.on” and Uniper combined have a higher market value than the integrated company, which may be translated as a positive transaction achievement. Nevertheless, as E.On was part of the DAX index, Uniper was listed for a day on the same index (on 12 September), but will now be traded on the m-DAX index from 13 September onwards. This has put some pressure on the first day of trading as index-linked funds would sell these shares as the company exits the index.
Equity levels under pressure; additional writedown on Uniper likely
10 Aug 16
E.On has released its half year results which revealed a difficult half of the year with revenues falling 11% yoy to €20.254m, adjusted EBITDA -13.5% to €2,901m and adjusted operating profit decreasing to €2,001m (-6% yoy), which are in line with expectations. However, due to impairment charges on power stations, gas storage facilities and contingent charges of €3.8bn on Uniper, net income fell into negative territory once again with a reported loss of -€3,034m (compared to €1,149m a year ago). On an adjusted basis, nonetheless, net income reached €604m, providing a 28% yoy decrease and missing market expectations by 7%. On the core business (within the New E.On framework: networks, renewables and retail), adjusted operating profit increased by 15% yoy to just under €1.7bn, but missed market expectations by 11%; while for Uniper, adjusted operating profit contracted by 31.6% to €283m. Operating cash flows contracted by 12% yoy while economic net debt increased by 16.5% ytd to €24.8bn, mainly driven by an increase in pension provisions from a further decline in interest rates. Despite the negative results, the group has maintained its full-year guidance of an adjusted operating profit in the €2.7-3.1bn range and adjusted net income at €0.6-1bn. The Uniper spin-off continues on schedule with an expected stock listing in September.
Shareholders accept Uniper's spin-off, major changes to the board
09 Jun 16
E.On’s shareholders approved on 8 June 2016 the spin-off of a 53.35% majority stake in Uniper. The decision for the spin-off was supported by 99.68% of the share capital represented at the meeting (where 75% was needed for acceptance). The decision will take effect in the second half of 2016, when E.On’s shareholders will then automatically receive Uniper shares in a one-to-ten ratio: one Uniper share for every ten E.On shares they hold. Shareholders also approved the actions of the Management Board and Supervisory Board during the 2015 financial year as well as the dividend of €0.50 per share proposed by the Management and Supervisory Boards. In addition, shareholders have voted for Karl-Ludwig Kley to be the new Chairman of the E.On SE Board. He will succeed Werner Wenning, who has decided to step down at his own request. Wenning had been a member of E.On’s Board since April 2008 and its Chairman since May 2011. The Annual Shareholders Meeting also elected four other members to E.On’s Supervisory Board and resolved to increase the number of members from 12 to 18 until 2018: Erich Clementi, Senior Vice President for Sales and Distribution at IBM, Carolina Dybeck Happe is CFO of ASSA ABLOY AB, a publicly-listed company in Sweden which manufactures lock and security systems, Andreas Schmitz, an attorney and bank manager Ewald Woeste who has comprehensive knowledge of the energy industry. Three new employee representatives will also join the enlarged Board structure. A total of five female members will on the Board. Moreover changes in the remuneration of Management and Board members have been accepted, whereby the Management Board will be obliged to invest significantly in E.On stock and hold the corresponding number of shares. The annual remuneration will be based on EPS, as this will be the figure used to determine the dividend in the coming years. Moreover, remuneration for a period of several years will depend on the relative movement of E.On stock in comparison to its main European competitors, as measures would be taken based on the relative total shareholder return. The new remuneration system will become effective from 2017 onwards.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
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N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.