German power giant E.ON says profits down in first half

FRANKFURT: E.ON, Germany's biggest power supplier, said on Wednesday that first-half profits were hit by falling wholesale electricity prices, lower oil prices and a weak ruble.

"In line with expectations, at the half-year mark earnings were below the respective prior-year figures," E.ON said in a statement.

Underlying or operating profit, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), fell by 13 percent to 4.3 billion euros ($4.8 billion).

And underlying net profit slumped 21 percent to 1.2 billion euros.

First-half sales increased by about 5.0 percent to 57.3 billion euros.

"Transforming our company during a period of extremely low power prices and volatile oil prices is a challenge. Yet we delivered solid results," said chief financial officer Michael Sen.

Looking ahead, E.ON said it was sticking to its forecasts for full-year EBITDA to amound to 7.0-7.6 billion euros and underlying net profit to be between 1.4-1.8 billion euros