E.ON Books Billions in Losses, Eyes Layoffs

Dark clouds on the horizon for utility E.ON. Picture source: DPA

Power company E.ON suffered over €12.4 billion ($13 billion) in losses last year, a considerably larger shortfall than analysts anticipated, according to Handelsbatt sources at the utility.

The sources said E.ON suffered a “clear shortfall in the two-figure billions range.” Analysts at Deutsche Bank had forecast a net loss of €12.4 billion for 2016.

“It will be even larger,” sources at the company told Handelsblatt.

E.ON had to write off billions at its coal and gas spin-off Uniper SE, which debuted on the stock market last year. The power company also suffered losses on its nuclear plants and is burdened by hefty pension obligations.

The tense financial situation at E.ON is having an impact on its workers. E.ON plans to lay off between 1,000 and 1,500 people, company sources told Handelsblatt. The company’s headquarters in Essen and its main offices abroad will be the hardest hit. E.ON employs 43,000 people in total.

The power company declined to comment.

Read more on Thursday’s edition. 

Jürgen Flauger handles Handelsblatt’s coverage of energy from all angles: electricity and gas providers, international market developments and energy policy. To contact the author: flauger@handelsblatt.com

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