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E.ON has now fully accounted for the impact of its new strategy. The main items were the successful Uniper spinoff and the agreement with the German federal government on funding the phase-out of nuclear energy. 2016 was a transitional year for the company which now will focus on their three core businesses: energy networks, customer solutions, and renewables.

Adjusted EBIT for the E.ON Group of € 3.1 billion was at the upper end of the guidance range (€ 2.7 to € 3.1 billion) and below the prior-year figure. Adjusted net income of € 904 million was likewise at the upper end of the guidance range (€ 0.6 to € 1 billion) and below the prior-year figure. Factoring out prior-year earnings from businesses that have been sold, adjusted net income rose by about 10 per cent. E.ON’s core businesses recorded adjusted EBIT of € 2.5 billion, slightly less than the prior-year figure.

Energy Network’s adjusted EBIT declined primarily because of the non-recurrence of positive one-off items recorded in Germany in 2015. Customers Solutions’ adjusted EBIT was at the prior-year level. The Renewables segment posted higher earnings, mainly because Amrumbank West and Humber Gateway offshore wind farms were, for the first time, in operation for the entire year.

The successful Uniper spinoff necessitated impairment charges totaling about € 11 billion. In view of Uniper stock’s positive performance since its listing, the disposal proceeds from the planned future sale of E.ON’s remaining Uniper stock could have a positive impact. In addition, accounting standards required E.ON to record about € 3.6 billion in earlier currency losses at Uniper businesses as a loss on its own income sheet when it deconsolidated Uniper. E.ON will also make a one-time payment of around €2 billion for the agreement with the German federal government on the funding of the country’s phase-out of nuclear energy. Altogether, these one-off items resulted in a net loss of about €16 billion for 2016. In return, however, the company is completely relieved of past burdens.

E.ON expects its 2017 Group adjusted EBIT to be between € 2.8 and € 3.1 billion and its 2017 adjusted net income to be between € 1.2 and € 1.45 billion.