Utilities giant E.On saw its net profit drop by 22% in the second quarter of 2013 as renewable energy subsidies and weak demand for power across Europe impacted on its results.
The German provider’s chief executive Joahnnes Teyssen warned the regulatory and business environment for the company’s legacy power generation business is tough and that “no recovery is in sight”.
Last month E.On said it was mothballing a two-and-a-half-year-old gas-fired plant in Slovenia as it was unprofitable, and Mr Teyssen warned that, unless things change, more shutdowns are “unavoidable”.
But despite the fall in profit, he reaffirmed the company’s earnings forecast for the year.
Net income was EU919million euros (£790 million), down from EU1.18billion (£1.01 billion) in the April-June period a year ago.