E.On says 'past the worst' after annual loss

Gas hob
Image caption E.On cut its standard electricity prices by 6% last month

Energy company E.On has claimed it is "past the worst", but still made an annual loss in 2011.

The German firm had a net loss of 2.2bn euros (£1.8bn), compared to a profit of 5.85bn euros in 2010.

"For 2012, we expect to post an earnings increase that will continue in subsequent years," E.On said.

The company plans to return to profitability by cutting costs and expanding outside of Europe, beginning with Brazil.

The firm said it will invest 7bn euros in renewable energy over the next five years, of which 2bn euros will be spent on new offshore wind farms in Germany, the United Kingdom, and Sweden.

"We made good progress implementing our strategy," chief executive Johannes Teyssen said.

"We're pleased by the significant earnings growth in renewables, power generation in Russia, and gas production. This demonstrates that we defined the right growth businesses."

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