E.ON has seen it’s profits soar amid the background of continued high wholesale prices, with annual profit growth from £5.2 billion Core EBITDA to between £5.8 billion and £6 billion.
The firm reported in the ‘Capital Markets Story’ report that its business continues to project positive growth throughout 2022 and beyond in light of the ongoing gas and energy crisis.
Within the findings, E.ON’s energy networks have seen the high increase in profits with the category growing from £4.1 billion in 2021 to between £4.6 billion and £4.8 billion in 2022. This is expected to continue its trajectory into 2026 in which the report finds it will achieve a maximum value of £5.2 billion.
The positive growth comes at a time when gas and energy prices have sharply increased amid the cost-of-living crisis. Because of this, the report expresses that E.ON is seeing wide-scale growth across its businesses.
In fact, industry, transport and building sectors have seen a mass upscale in demand with figures rising by 111%, 3,400%, and 36% respectively.
The rise in profitability at E.ON follows a trend in the energy supplier market with Centrica recording a five-fold increase in the first six months of 2022 amid high commodity prices.
The company’s adjusted operating profits for the first half of this year grew to £1,342 million, up from £262 million in 2021. Meanwhile its adjusted EBITDA more than doubled from £682 million to £1,660 million.
Both E.ON’s and Centrica’s surging profits come amidst the backdrop of the continued energy crisis in the UK, with new research from the BFY Group suggesting the price cap will jump to £3,420 and £3,850 for the Q4 22 and Q1 23 price cap periods respectively. As such, the average household could be paying £500 a month for energy bills come January.
With this, representatives from E.ON were amongst energy suppliers that expressed concerns for when the price cap for energy is expected to rise again in October highlighting significant concerns for the vulnerable and poor.
Keith Sanderson, CEO of ScottishPower stated that consumer bills are now “beyond what this industry can deal with,” whilst highlighting major concerns for October which he describes is “going to be horrific.”