E.ON FY21 Profit Surges, Lifts Dividend; Backs Long-term Goals Through FY26

German electric utility E.ON AG reported Wednesday significantly higher profit in its fiscal 2021, with strong growth in revenues. The company also announced higher dividend.

Looking ahead, CEO Leonhard Birnbaum said, “Our goal for 2022 is to continue to propel decarbonization in the three key elements of our strategy: sustainability, digitalization, growth. We’ll continue to achieve and reaffirm our long-term goals through 2026.”

Further, the company said its Board has decided on a dividend policy that foresees annual growth in the dividend per share of up to 5 percent through the dividend for the 2026 financial year. This applies to a dividend growth of up to 5 percent for 2022.

E.ON added that it will aim for an annual increase in dividend per share after 2026 as well.

At the Annual Shareholders Meeting in 2022, the Management Board will propose that net income available for distribution be used to pay a cash dividend of 0.49 euros per share, up from 0.47 euro last year. The remaining 1.28 billion euros needs to be carried forward to the next financial year.

For fiscal year 2021, net income attributable to shareholders of the company climbed to 4.69 billion euros or 1.80 euros per share from last year’s 1.02 billion euros or 0.39 euros per share.

Adjusted net income was 2.50 billion euros or 0.96 euro per share, compared to 1.64 billion euros or 0.63 euro per share a year ago.

Adjusted EBIT climbed 25 percent from last year to 4.72 billion euros, and adjusted EBITDA grew 14 percent to 7.89 billion euros.

Annual sales grew 27 percent to 77.36 billion euros from 60.94 billion euros in the previous year. Sales rose in particular at the Customer Solutions segment. The increase was partially attributable to the settlement of commodity derivatives.

In addition, sales volume was higher in nearly all E.ON markets due primarily to cooler weather.

In Germany, E.ON shares were trading at 10.90 euros, up 0.46 percent.

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