German energy producer E.On posted a net loss of €3.2bn in 2014, down from a €2.14bn profit the previous year. The company blames the drop on €5.4bn it had set aside for Q4 impairment charges for its power plants across Europe, including locations in the UK, Italy and Sweden. E.On said it expects another tough year as oil prices continue to nosedive, impacting its upstream oil and natural-gas division. The company expects its operating profit for 2015 will be between €7bn and €7.6bn, with an underlying net profit between €1.4bn and €1.8bn.
“Considering the continued difficult market environment in many countries, we’re generally satisfied with our 2014 results, particularly since we achieved lasting cost reductions across our business and made a number of successful disposals,” said Klaus Schaefer, the company’s CFO. “But it’s also true that extremely low oil prices, adverse changes in currency rates, and a further decline in power prices are having a significant effect on our business.”
