Next week, Germany’s largest power company, E.ON, is expected to announce a record loss for a single year, a shortfall of €3 billion, or $3.3 billion.
E.ON is posting the 2014 loss as it writes down the value of large parts of its business ahead of a restructuring to speed its exit from fossil fuels, according to information obtained by Handelsblatt from sources close to E.ON.
The results will be made public at a press conference Wednesday after Chief Executive Johannes Teyssen presents figures to E.ON’s supervisory board, which hires and fires the chief executive and approves strategic decisions.
“It’s not surprising that E.ON is posting a loss. What’s interesting is how high it is,” said Stephan Wulf, an analyst at Warburg Research. “There are a lot of issues E.ON needs to address right now.”
Speculation about the level of loss at E.ON differ greatly in financial circles, with analyst estimates falling between €2 and €4 billion.