FRANKFURT: E.ON, Germany’s leading power supplier, said Wednesday it booked a sharp drop in profits last year as a result of Europe’s energy transition and expected earnings to fall again this year.
E.ON said in a statement its net profit plunged 46 percent to 2.243 billion euros ($3.1 billion) in 2013 and underlying or operating profit was down 14 percent at 9.315 bilion euros.
Revenues declined by 7.0 percent to 122.45 billion euros.
“Our 2013 results clearly reflect the negative effects of a difficult economic and regulatory environment in Europe,” said chief executive Johannes Teyssen.
“In particular, the ramifications of policy decisions in Germany and the related insufficient market prices for conventional energy continue to have an adverse impact on our generation portfolio, which has long been a mainstay of our business,” Teyssen said.
And the current year was also likely to remain difficult, E.ON said.