E.ON on course for innogy transaction while 2019 renewables earnings rise

German utility E.ON has reaffirmed largely stable operating earnings of around 3 billion euros for 2019, thanks in part to rising renewables earnings. Earnings from renewables before interest and tax (EBIT) rose by 17 percent in the first half of 2019 compared to the same period a year ago – from 236 to 275 million euros. E.ON partly attributed the increase to output from new offshore wind farms in Germany and the United Kingdom. The utility also said it was on course to take over innogy's grid and customer businesses in September as part of an asset swap with innogy owner RWE. "We’re very confident that we’ll obtain the EU’s approval," CEO Johannes Teyssen wrote to shareholders. The company's net income fell by 16 percent in the first half of 2019 compared to the first half of 2018, from 1.1 to 0.9 billion euros.

RWE and E.ON agreed in March 2018 to a major asset-swapping deal that would drastically reshape Germany's energy landscape. E.ON plans to buy RWE's green power subsidiary innogy and the two utilities will also exchange large parts of their assets to refocus their activities.