German utility E.ON AG's (EOAN.XE) Chief Financial Officer Marcus Schenck Wednesday said the company expects its economic net debt at the end of 2009 to be slightly below the EUR46.18 billion it reported as of Sept. 30.
Schenck said that a book gain from the sale of E.ON's municipal utility holding Thuega, which is expected to close in the fourth quarter of the year, will overcompensate increased capital expenditure and a EUR553 million European Union antitrust fine.
E.ON defines economic net debt as net debt including financial liabilities, as well as provisions for pensions and asset retirement obligations.
At the end of 2008, economic net debt stood at EUR44.95 billion.
Over the past two years E.ON's debt pile grew sharply after acquiring assets in southern Europe and Russia and increasing its renewable energies portfolio in Europe and the U.S.
To reduce this debt pile and refocus its business, E.ON is planning to sell at least EUR10 billion worth in assets by the end of 2010.
To date, the company has sold or agreed to sell nearly EUR6 billion worth in assets, including the EUR2.9 billion disposal of its municipal utilities' holding unit Thuega, about 20% of its German power generation capacity as well as its German power transmission grid.