FRANKFURT - German gas, electric and water utility E.ON says net profit fell 22 per cent in the second quarter as it faced weak demand for power in Europe and increased competition from subsidized renewable energy.
Net income was 919 million euros ($1.22 billion), down from 1.18 billion in the April-June period a year ago.
Despite the fall in profit, CEO Johannes Teyssen reaffirmed the company's earnings forecast for the year. But he also said Tuesday that the regulatory and business environment for the company's legacy power generation business was tough and that "no recovery is in sight."
Last month E.ON said it was mothballing a 2 1/2-year old gas-fired plant in Slovakia because it was unprofitable and Teyssen said unless things change more shutdowns were "unavoidable."