FRANKFURT (Dow Jones)--E.ON AG (EOAN.XE) Tuesday said it no longer expects its Russian operations to contribute EUR1 billion in earnings before interest, taxes, depreciation and amortization in 2011.
Chief Financial Officer Marcus Schenck told analysts and reporters in a conference call that the unfavorable development of the Russian ruble over the past couple of months as well as delays in the construction of two of its Russian power plants are responsible for the cut in earnings forecast.
"The delay of the construction works means these two power plants will be online after 2011," Schenck said.
He added that E.ON expects its Russian business will instead contribute a high three-figure-million euro amount to Ebitda in 2011.
E.ON reiterated that the liberalization of the Russian electricity market is progressing as planned and therefore hasn't anything to do with the cut Russian earnings forecast.