RWE on Tuesday hailed “good progress” towards completing its ambitious asset swap agreement with rival E.On, as the German utility unveiled first-half results that were broadly in line with market expectations. Adjusted earnings before interest, taxes, depreciation and amortisation were €1.1bn, down from €1.4bn last year, according to Financial Times.

RWE said the numbers — which were in line with a Reuters poll of analysts — referred to its “standalone” business, stripping out the contribution of renewables group Innogy, except for the dividend. Innogy, in which RWE is the controlling shareholder, is at the centre of this year’s €40bn transaction with E.On that is set to transform the German energy market.

The deal will see E.On take over Innogy, followed by a series of asset swaps that will leave E.On focused on regulated energy networks and retail customers, and RWE as a leading European energy producer that will own the renewables assets of both E.On and Innogy. Rolf-Martin Schmitz, RWE chief executive, said in a statement:

“We achieved our operating goals in the first half of 2018 and are therefore right on track for the full year. The transaction with E.On is making good progress. As one of Europe‘s leading electricity producers, we will have an even broader and stronger portfolio of assets.”

RWE said adjusted net income for the first half of the year was at €683m, down from €883m last year. The decline reflected not least a sharp drop in earnings from the group‘s lignite and nuclear operations, which saw ebitda for the first six months fall from €401m to €167m.