Germany's largest power supplier, Eon, has reported a marked drop in full-year earnings. It said 2013 results reflected the ramifications of the country's policy decisions related to its shift to renewables.
Eon said March 12 its 2013 net earnings plunged by 46 percent to 2.24 billion euros ($3.1 billion), with underlying profit down by 14 percent to 9.32 billion euros.
The company argued last year's results reflected the negative effects of a difficult economic and regulatory environment in Europe, and the repercussions of Germany's energy transition in particular.
"The ramifications of policy decisions in Germany and the related insufficient market prices for conventional energy continue to have as adverse impact on our generation portfolio, which has long been a mainstay of our business," CEO Johannes Teyssen said in a statement.
Unfazed by the Crimea conflict
Eon expected its business to remain weak in the current year as it aimed for a net income of between 1.5 and 1.9 billion euros throughout 2014.
The company said it would have to switch off nine more power plants entirely or partially in the near future as they increasingly lacked profitability in an energy market focused on pushing renewables.
Eon insisted the current political events surrounding Crimea would not affect its business with Russia. Talking of long-standing relations with Russia, Teyssen said he saw "no signs whatsoever relations between his company and that country might change."
The power suppler has invested some six billion euros in its Russia business since 2007 and currently employs some 5,000 people there.
hg/mz (dpa, AFP)