E.ON profits slump 22%

German gas, electric and water utility giant E.ON said its net profit fell 22% in the second quarter as it faced weak demand for power in Europe and increased competition from subsidised renewable energy.

Net income was €919m, down from €1.18bn in the April-June period a year ago.

Despite the fall in profit, chief executive Johannes Teyssen reaffirmed the company’s earnings forecast for the year.

But he also said the regulatory and business environment for the company’s legacy power generation business is tough and that “no recovery is in sight”.

Last month E.ON said it was mothballing a two-and-a-half-year-old gas-fired plant in Slovenia because it was unprofitable and Mr Teyssen said that, unless things change, more shutdowns are “unavoidable”.