Romania: E.ON Romania marks 1Q2015 increased profit due to higher gas distribution tariffs

, SEE Energy News

EBITDA of E.ON Romania increased in the first quarter, supported by higher tariffs for gas distribution in 2014, which was canceled partly offset reduced gas procurement costs.

EBITDA of operations included in “other regional divisions’ rose by 21 million euros to 119 million euros, due to higher profits Connecting Energies division in Romania and the Netherlands.

“Profit from Romania benefited from the positive effects of increases in tariffs for gas distribution division, established in 2014, and increased efficiency. These effects were partially offset by lower compensation for previous gas procurement costs, “according to the report.

The group “other regional units” included in the first quarter E.ON operations in France, the Netherlands, Slovakia and Romania. By December were part of this group and divisions in Spain and Italy, which were sold. This category includes activities Connecting E.ON Energies, which offers customers integrated distribution solutions.

Investments in these regional units totaled 21 million euros in the first quarter, compared to 5 million a year ago. The increase reflects higher investments in electricity and gas networks of Romania and payments made by E.ON Energies Connecting on a project for a client in Marl, Germany.

Sales of gas to residential customers and small and medium businesses increased by 3.3 billion kWh. The main factor that influenced this increase was the cold weather in Germany, Romania, Great Britain and Hungary, according to E.ON.

At Group level, EBITDA in the first quarter decreased by 9% and about 0.3 billion to 2.8 billion. Revenues fell by 2%, from 30.6 billion euros. E.ON Group’s gas sales increased 18% in the first three months of the year, 65.9 billion kWh respectively, to 429.7 billion kWh. Sales of electricity has stagnated at 193.5 billion kWh.