"It will take time to sustainably build the new eon with strong earnings power and appropriate prices for our shares," chief executive johannes teyssen said at the annual general meeting in essen on friday. It is not about short-term adjustments, but structural changes.
In view of the shrinking profits due to the energy turnaround and the nuclear phase-out, eon is focusing on new markets in emerging countries. Teyssen admitted that there could be jolts in the process. "But those who dare can gain a great deal with such future-oriented businesses. Those who fearfully do not move despite shrinking base at home have already lost."
In brazil, the group recently had to inject new money because its partner there – billionaire eike batista – had run into financial difficulties. The total investment now amounts to more than 1.1 billion euros. Among shareholders, therefore, concerns are already spreading. "We fear that brazil is a risk class (..) is too rough," said fund manager ingo speich of union investment, for example, according to the manuscript.
In europe, and especially in the german domestic market, eon is streamlining its business. Since 2010, the group has sold parts of its business for 17 billion euros. Another three billion euros could be added, teyssen said. Eon wants to use the money to reduce its debt and free up space for new investments.
The restructuring is also at the expense of employees. Eon to cut around 11,00 jobs by 2015, including 6,000 in germany. At the end of 2012, eon had a good 72,000 employees, around 7,000 fewer than in the previous year.
The energy giant confirmed its targets for the current year. The surplus adjusted for valuation effects is expected to fall to between 2.6 and 2.2 billion euros, at worst two billion euros less than in 2012, due to the difficult economic conditions.
The problem: the group is earning less and less money with its conventional power plants. This is also due to the boom in renewable energies. This print on the price on the electricity stock exchange. Since the major utilities generally sell their electricity years in advance and the old contracts are now expiring, they are only now really beginning to feel the effects of the price collapse. The reason for the drop in prices is "an indigestible cocktail of weak demand and screwed-up regulation in germany and europe," teyssen said.
Teyssen therefore again called for fair compensation for plants that are important for the stability of the electricity supply. In the case of the bavarian gas-fired power plant at irsching, it was recently possible to achieve an acceptable interest rate. Eon, however, will not shy away from closing unprofitable plants in order to protect the group's capital.