E.ON and the UK’s International Power raised their profit forecasts today, despite a gloomy outlook for power demand.

German company E.ON said it now expects net income adjusted for extraordinary effects to drop 3 to 5% this year, after previously forecasting a drop of 5 to 10%.

This is the second time the company has raised its outlook, reports Reuters.

“The main drivers were the company’s foresighted hedging strategy, the successes it has achieved in its ongoing efficiency-enhancement programme, and the first earnings effects from its growth investments of the past two years,” E.ON said in a statement.

International Power said it expects earnings per shares in 2009 to be “broadly in line” with last year. The company had warned 2009 profits would fall because of difficult markets in the UK and US.