Eon posted a first-half loss after taking €3.8 billion in charges linked to the listing next month of its Uniper unit.

The impairments and contingency losses for its power stations burning fossil fuel and natural gas storage assets led to a net loss of €3.03 billion compared with a €1.15 billion profit a year earlier, the company said on Wednesday.

Unspecified loss

Eon expects an annual net loss for 2016, chief executive Johannes Teyssen said, without specifying an amount.

Eon’s decision to separate its Uniper unit and list it on the Frankfurt Stock Exchange is one of the most radical responses yet to Germany’s unprecedented shift towards wind and solar generation, a policy that’s undermining power prices and hurting profitability at traditional utilities.

An overhauled version of the company will focus on renewables, networks and retail consumers, while also keeping its German nuclear plants.

Adjusted net income for Eon without Uniper in the first half of 2016 fell 28 per cent to €604 million, with “high” tax payments also contributing, missing the €645 million median estimate of analysts.

The company also reiterated that this year’s adjusted net income for the new Eon will be between €600 million and €1 billion.