ESSEN (dpa-AFX) - The energy supplier Eon has beaten its own forecasts for 2023. In addition, the DAX-listed company exceeded market expectations with its profit adjusted for special effects. In the final quarter, Eon benefited from one-off effects and the release of its winter buffer, which the energy company had built up in case the energy crisis worsened again. The reaction on the stock market was muted.

The share price initially rose by 1.7 percent on Friday morning, but then fell by around half a percent. It is therefore still trading in the range of 12 to 13 euros. The share price has been at this level since December.

Analyst Wanda Serwinowska from the Swiss bank UBS also assessed the key data as rather neutral for the shares in an initial reaction. The business outlook for 2024 and the business plan up to 2028, which are expected in March when the final figures are published, are more important.

JPMorgan analyst Javier Garrido also pointed out that the profit increase had already been expected by the market. After all, the management had already had difficulties explaining why the annual targets had not been raised when presenting the figures for the third quarter. According to preliminary figures, the adjusted Group net profit for 2023 amounted to EUR 3.1 billion - after EUR 2.7 billion in the previous year, Eon surprisingly announced on Thursday after the close of trading. The Essen-based company had forecast 2.7 to 2.9 billion. Analysts had expected a good 2.9 billion.

According to Eon, earnings in the important grid business were above expectations in the fourth quarter, primarily thanks to operating effects in almost all countries. "In addition, temporary effects in Germany, which will be returned to customers in subsequent years, and one-off regulatory effects in Slovakia had a positive impact on earnings in the fourth quarter," it said.

Bernstein analyst Deepa Venkateswaran referred in particular to lower redispatch costs in the final quarter. According to her calculations, they amounted to around 200 million euros. Redispatch costs arise when transmission and distribution grid operators intervene in the generation capacity of electricity producers. Power plants can be throttled or started up, solar panels can be curtailed and wind turbines can be turned out of or into the wind direction. This prevents bottlenecks and overloads in the electricity grid.

In the traditionally smaller sales business, Eon also released its winter buffer in the fourth quarter. CFO Marc Spieker had included EUR 300 million in the annual targets issued in order to be able to absorb possible caprioles on the energy markets in the event of a further worsening of the situation. The negative effects from a possible deterioration in the energy industry environment in the Customer Solutions division, which were taken into account in the forecast, have now not materialized.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects rose by almost 17 percent year-on-year to 9.4 billion euros. Eon had forecast 8.8 billion at best - the same level as the analysts' forecast.

The Group's individual segments both contributed to the surprisingly good development. The adjusted operating profit of Energy Networks rose by a good fifth to 6.6 billion euros. The Customer Solutions division increased its operating result by two thirds to 2.8 billion euros.

The Group performed better than forecast, although, among other things, more money was invested in the expansion of the network than previously planned. Investments amounted to 6.4 billion euros compared to the forecast of around 6.1 billion euros. Adapting the grid infrastructure to the energy transition will cost a lot, but will also bring Eon future growth.

For JPMorgan analyst Garrido, the higher investments in 2023 are therefore also a "good omen" for the increase in the medium-term investment plans that he expects. Eon currently plans to invest around 33 billion euros by 2027. Traditionally, the Group extends the plan by one year at the annual press conference.

Details on the investment plans, the net result excluding special items and an assessment of the new year will be provided when the annual report is presented on March 13./mis/lew/niw/jha/