German electric utility E.ON SE reported Wednesday a sharp drop in fiscal 2020 net profit, while adjusted EBIT and EBITDA, key earnings metrics, climbed with strong growth in sales. The results were primarily benefited by the inclusion of innogy Group for an entire year for the first time.

Looking ahead, the company projects higher adjusted results for fiscal 2021, and ahead, and also announced dividend. E.ON also targets dividend to increase by up to 5 percent annually through 2023.

For 2021, E.ON anticipates adjusted net income of 1.7 billion euros to 1.9 billion euros and adjusted EBIT in the range of 3.8 billion euros to 4.0 billion euros.

Further ahead, the company expects EBIT to grow by an average of 8 to 10 percent and EBITDA to grow by an average of 2 to 3 percent between 2021 and 2023.

CFO Marc Spieker said, “In particular, tangible earnings in our core business of 11 to 13 percent will then offset declining earnings at our nuclear power business in Germany. The synergies we’re leveraging will also help.”

E.ON said its Management and Supervisory Boards intend to recommend the payment of a dividend of 0.47 euros per share for the 2020 financial year.

The company also reaffirmed synergy target of 780 million euros in recurring savings through 2024.

In addition, E.ON intends to reduce the emissions and become climate-neutral by 2040. E.ON will reduce its Scope 1 and 2 emissions by 75 percent by 2030 and by 100 percent by 2040 compared with 2019.

In 2020 it reduced its emissions in all three scopes by a total of 10 percent.

For fiscal 2020, net income attributable to shareholders fell 34 percent to 1.02 billion euros from last year’s 1.55 billion euros. Earnings per share were 0.39 euros, down 43 percent from 0.68 euro a year ago.

Adjusted net income was 1.64 billion euros or 0.63 euro per share, compared to 1.53 billion euros or 0.67 euro per share a year ago.

For fiscal 2020, net income available for distribution rose to 2.12 billion euros from 1.21 billion euros in the previous year.

Adjusted EBIT climbed 17 percent to 3.78 billion euros from last year’s 3.22 billion euros. Adjusted EBITDA grew 24 percent to 6.91 billion euros.

Sales for the year climbed 48 percent to 60.94 billion euros from last year’s 41.28 billion euros.

Energy Networks sales climbed 51 percent from last year to 18.28 billion euros, and Customer Solutions sales went up 52 percent to 48.34 billion euros.

In the fourth quarter, sales edged down 1 percent to 17.63 billion euros as 6 percent growth in Energy Networks were more than offset by 6 percent drop in Customer Solutions.

In Germany, E.ON shares were trading at 9.14 euros, up 0.6 percent.

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