E.ON, Germany’s largest utility, reported an 8% rise in first-quarter core earnings, after the group secured better gas prices from Russian supplier Gazprom. “Our first-quarter results indicate that parts of our traditional operating business remain under pressure,” said Chief Financial Officer Michael Sen, according to Reuters.
The gas deal reached with Russian supplier Gazprom in March allowed E.ON to release some of the provisions it had made in prior years. “The earnings improvement is attributable to a non-recurring positive effect resulting from the agreement with Gazprom to adjust the terms of long-term gas supply contracts,” he said in an statement.
About the E.ON and Gazprom’s agreement, the German company said in March it expected a non-recurring positive EBITDA effect of about $433m in the first quarter of 2016.