Gas Natural Fenosa, a Spanish natural gas and electrical energy utilities company, is analyzing a possible merger with Energias de Portugal, a global energy company.

Gas Natural has a tax loss carryforward of €1,000,000, which it could apply to Energias’ expected earnings before taxes of €1,000,000 per year for the next three years. Using a 21% tax rate, compare the earnings after taxes for Energias for the next three years, both without and with the merger.