E.ON SE ADROTCQX
Can Inefficient Markets Work To E.ON's Advantage?
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Oct. 20, 8:56 AM
- E.ON (OTCQX:EONGY) says it expects to invest $500M to build a wind farm in Macon County, Ill. with installed capacity of 278 MW.
- The Radford's Run project will be the second largest wind farm in the state, and is E.ON's third project there.
- E.ON also says Johnson & Johnson signed a 12-year power purchase deal to acquire half the output of its 200 MW Colbeck's Corner wind farm in Texas.
Wed, Oct. 12, 8:11 AM
- Germany's government has reached an agreement in principle with utilities on a nuclear decommissioning pact that could go into effect in February, Bloomberg reports.
- Utilities including E.ON (OTCQX:EONGY) and RWE (OTCPK:RWEOY) reportedly would make a combined initial payment of €23.3B ($25.8B) that was proposed by a government appointed panel in April, as well as interest, to free them from their nuclear waste storage liabilities.
- The German cabinet is expected to approve the deal on Oct. 19, according to the report.
Fri, Sep. 16, 10:59 AM
- Russia's Gazprom (OTCPK:OGZPY) and its European partners in the Nord Stream-2 gas pipeline project say they have submitted a permit application to Sweden, starting a process aimed at gaining official approval for the 1,200-km pipeline.
- The group says it plans to submit permit applications in the four other relevant jurisdictions - Russia, Finland, Denmark and Germany - in early 2017.
- Nord Stream-2, due to open in 2019, would double the amount of gas directly shipped from Russia to Germany; critics say it could limit supply routes and the energy security of the European Union, which already gets a third of its gas from Russia.
- Gazprom's Nord Stream-2 partners include Royal Dutch Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF), Engie (OTCPK:ENGIY) and Wintershall.
Tue, Sep. 13, 11:48 AM
- Pipes to build Russia's Nord Stream-2 are expected to start being supplied in December or January, in a sign the gas project designed to double the capacity of the existing pipeline on the Baltic Sea floor from Russia to Germany is going ahead.
- The head of the Russian pipemakers association told the Reuters Russia Investment Summit that he expects construction of Nord Stream-2, which was due to start in 2018, to go ahead as planned as production of the pipes had already begun.
- Last year, Gazprom (OTCPK:OGZPY) and its European partners, including Royal Duthc Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF), Engie (OTCPK:ENGIY) and Wintershall, agreed on the project which will double the 55B cm/year of the existing pipeline.
Wed, Jun. 8, 4:59 PM
- The Gazprom-led (OTCPK:OGZPY) consortium has issued the first major tender for its $11B Nord Stream-2 natural gas pipeline project, which could double supplies of Russian pipeline gas across the Baltic Sea to Western Europe, WSJ reports.
- The estimated $1B-plus tender for the pipe-laying contract has been sent to interested contractors, and bids will be evaluated by the consortium on June 13, according to the report.
- The JV building the project is 51% owned by Gazprom, while Royal Dutch Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF) and BASF/Wintershall (OTCQX:BASFY) each own 10% and Engie (OTCPK:ENGIY) has a 9% stake.
- The existing Nord Stream pipeline has been criticized because it allows Russia to circumvent transit countries, such as Ukraine and Poland; the European Union is skeptical about the new project on antitrust grounds because Gazprom would own all the gas to be transported through the infrastructure.
Wed, May 11, 10:48 AM
- E.ON (OTCQX:EONGY) falls more than 7% in German trading after the utility warns it may have to pay as much as €10B ($11.4B) into a state fund to manage nuclear waste.
- CFO Michael Sen says E.ON is working on how to fund Germany’s exit from nuclear energy, including the possibility of accessing capital markets, and estimates a €10B payment will be needed under a proposal by a government appointed commission; while the company would be able to cancel ~€8B of provisions for waste storage, the rest would reduce equity and weigh on its BBB+ rating, the CFO says.
- E.ON reported a 30% Q1 increase in underlying net income of €1.31B on 12% lower revenue amid a slide in power prices.
Wed, May 11, 8:16 AM
Fri, May 6, 5:03 PM
- The U.S. increasingly views the Nord Stream-2 gas pipeline project, which would double the volume of gas shipped directly from Russia to Germany, as a threat to national security, according to a senior U.S. energy envoy.
- Many European Union governments complain that the project increases dependency on Russia, which supplies around a third of the EU's gas.
- The Nord Stream-2 consortium, which includes Gazprom (OTCPK:OGZPY), E.ON (OTCQX:EONGY), Royal Dutch Shell (RDS.A, RDS.B), Engie (OTCPK:ENGIY) and others, says the project is purely commercial and that Russian pipeline gas is cheaper than liquefied natural gas.
- The envoy - at a meeting in Washington this week of the U.S.-EU energy council - dismisses the argument, saying it does not make commercial sense for Europe to "double down on physical infrastructure that is not accessible to new markets."
Wed, Mar. 9, 5:12 AM
- German utility E.ON (OTCQX:EONGY) swung to a record full-year net loss, hit by an impairment charges on its conventional power operations, and said it would review its investment and dividend plans because of worsening industry conditions.
- The company's net loss for the year came to €7B ($7.71B), more than twice the loss of €3.16B for 2014.
- E.ON also noted that chairman Werner Wenning will step down on June 8, and Merck's Karl-Ludwig Kley has been nominated to fill the position.
Wed, Jan. 13, 7:52 AM
- E.ON (OTCQX:EONGY) reportedly is in advanced talks to sell its U.K. North Sea assets to Premier Oil (OTC:PMOIF), Dow Jones reports.
- Shares of Premier Oil are suspended on the London Stock Exchange ahead of an announcement of a potential asset acquisition.
- The German utility has launched a restructuring strategy to spin out conventional operations to a new company, and plans to focus on renewable energy while retaining its German nuclear operations within the parent company.
Mon, Jan. 4, 10:47 AM
- German utility E.ON (OTCQX:EONGY) says it separated its coal, gas and hydro power plants as well as its energy trading business effective Jan. 1, putting it on track to list a majority of its new Uniper business in H2 of this year.
- The plan, which still needs approval from shareholders at a June meeting, hit a snag last year when E.ON had to take back the German nuclear plants it originally wanted to move to Uniper.
- Uniper has 40 GW of power generation capacity and is led by Klaus Schaefer, who served as E.ON's CFO until mid-2015.
Dec. 1, 2015, 8:13 AM
- RWE (OTCPK:RWEOY) announces plans to spin off its renewable energy, grids and retail operations into a new publicly traded entity by the end of next year.
- RWE says it will list 10% of the spinoff in the form of a capital increase, subject to approval at a Dec. 11 board meeting, and additional stakes may be sold at the same time or at a later date.
- The move comes after RWE had long shunned the strategy of its peer E.ON (OTCQX:EONGY), which will split its conventional power, trading and production operations into a new company next year.
- RWE shares trade as much as 8.5% higher in Frankfurt, but the stock is the biggest decliner on the DAX Index this year, falling 55%.
Nov. 11, 2015, 9:49 AM
- E.ON (OTCQX:EONGY) says it booked a €8.3B impairment charge, mostly due to price assumptions and asset revaluations, amid a net loss of €7.25B in its Q3, but will stick to its plans to keep its €0.50/share dividend unchanged for the year.
- "The dividend is a clear signal to the owners of our company that we have the wherewithal and the strength to pay out a dividend, unlike some others in the industry," CFO Michael Sen says.
- The CFO says he is not ruling out a Q4 charge of ~€500M but does not expect further writedowns in the quarters thereafter; last year, E.ON booked total impairments of about €5B.
- E.ON also reaffirms its forecast for FY 2015, expecting EBITDA of €7B-€7.6B and underlying net income of €1.4B-€1.8B.
Nov. 5, 2015, 7:58 AM
- Enbridge (NYSE:ENB) agrees to acquire a 24.9% stake in E.ON's (OTCQX:EONGY) €1.9B ($2.1B) offshore Rampion wind project Rampion in the U.K. for C$750M (US$570M), and will manage construction of the project.
- E.ON will remain the controlling shareholder of the 400 MW project with a 50.1% stake, with the remaining stake being held by the UK Green Investment Bank.
- ENB and E.ON already are partners in the Magic Valley wind farm in Texas and the Wildcat wind farm in Indiana.
Oct. 16, 2015, 11:30 AM
- The Nord Stream 2 natural gas pipeline consortium has begun the process of hiring contractors to build the $11B project, WSJ reports.
- The project, which will double supplies of Russian pipeline gas across the Baltic Sea to western Europe, is 51% owned by Russia’s Gazprom (OTCPK:OGZPY), with Germany’s E.ON (OTCQX:EONGY) and U.K.'s Royal Dutch Shell (RDS.A, RDS.B) among the other partners.
- Nord Stream 2 is planned to run alongside existing Nord Stream 1 pipelines, a project which has been criticized because it allows Russian gas to circumvent transit countries such as Ukraine and Poland.
Oct. 14, 2015, 7:43 AM
- German energy company E.ON (OTCQX:EONGY) agrees to sell its entire North Sea E&P division to a company controlled by Russian billionaire Mikhail Fridman in a deal valued at $1.6B.
- E.ON holds ~30 licenses in Norway but most are exploration assets and just a few are in production, with none actually operated by E.ON; its major producing fields include Njord, operated by Statoil, and Skarv, operated by BP.
- E.ON says its U.K. E&P business remains under review, adding it would "provide an update in due course."