E.ON reportedly ponders selling its Romanian power and gas supply business

E.ON confirmed that it "is carrying out a strategic review" of its retail business in Romania after Hotnews.ro announced that the country's Romgaz might take over the local energy supply division of the German group.

E.ON stressed in its press release that "no decision has been made yet."

"In line with its strategy, E.ON is continuously reviewing its portfolio to advance its strategic agenda of sustainability, digitization, and growth," the company also said.

E.ON has a portfolio of 3.4 million customers, being the only supplier that integrated its power and natural gas offers.

Notably, the German group speaks in its press release of its retail business only, meaning it could still retain the portfolio of large industrial consumers. Among the interested bidders for E.ON's division are reportedly Hidroelectrica and Engie.

Local Ziarul Financiar speaks of a consortium formed by the two Romanian state-controlled companies (Romgaz and Hidroelectrica) that would bid for E.ON's supply division.

As regards why E.ON would put up for sale its Romanian supply division, the weak financial profitability seems to be the main reason. In 2022, E.ON Energie Romania reported RON 13.7 billion (EUR 2.75 billion) in revenues and RON 356 million (EUR 71 million) losses.

"There was a rebound in results in 2023, and they most likely want to capitalize on that," experts quoted by Ziarul Financiar commented.

(Photo source: Facebook/E.ON)