RPT-UPDATE 1-E.ON still struggling with weak gas business

(Repeats to additional Reuters clients)

* Natural gas trading prices higher vs import prices -E.ON

* Declines to say whether gas business loss-making - E.ON

* Has reached price agreements with some gas suppliers

ESSEN, Germany, Feb 8 (Reuters) - German utility E.ON continues to struggle with its weak gas business, and is paying its suppliers more for gas than it is getting from its customers, a board member of its Ruhrgas unit said,

"Currently, trading prices for natural gas are nearly as low compared to import prices as they were in early 2010," Stefan Vogg told reporters on Wednesday, but declined to say whether E.ON's gas business was loss-making.

"We will not say anything about results," Vogg said.

E.ON, whose Ruhrgas unit is Russian Gazprom's biggest European customer, will present annual results for the financial year 2011 on March 14.

In the first nine months of 2011, E.ON's gas business reached adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.29 billion euros ($1.71 billion), down more than a third from a year earlier.

E.ON Chief Executive Johannes Teyssen said in December the company may have to post its first ever annual net loss for 2011, partly due to Germany's decision to exit nuclear power. Company sources said this loss could be up to 1 billion euros.

Problems in E.ON's gas business are partly due to falling spot prices for gas following oversupply, but the company -- along with peer RWE and other rivals -- is bound to high prices in its long-term contracts with suppliers.

Vogg said long-term contracts needed to be adjusted to reflect current market conditions.

"Some suppliers are having fewer difficulties understanding that, others more," he said. He added the company has already reached agreements with a number of suppliers regarding prices but declined to name any.

E.ON last year said it would seek arbitration in a prolonged row with Gazprom over long-term gas supply contract terms. ($1 = 0.7552 euros) (Reporting by Tom Kaeckenhoff; Writing by Christoph Steitz)