E.ON plans €42bn investment for upgrading European electricity grids

E.ON, a German energy network operator, has revealed a €42bn ($46bn) investment goal for the period of 2024 to 2028 to revamp Europe’s energy infrastructure. This latest target represents a 30% boost from the previous plan covering 2023–27.

The decision highlights the pressing necessity in Europe to enhance its grids to support the increasing influx of renewable energy sources. Of the total investment, €34bn is designated for the energy network sector, with Germany slated to receive €25bn alone. Additionally, €5bn will be directed towards energy infrastructure solutions.

“This indicates our commitment to significant investments to address the swiftly increasing need for energy infrastructure, while also showcasing our leadership in a field where others may be hesitant. Taking on a pioneering role in the energy transition strengthens E.ON.”

The increased investment is set to boost E.ON’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to €11bn by 2028. E.ON saw a 16% rise in adjusted EBITDA to €9.4bn compared to the prior year. Adjusted net income also increased by 12%, reaching €3.1bn.

The energy firm intends to raise dividends to €0.53 per share for 2023, up from €0.51 per share in 2022. Looking forward to 2028, it anticipates that adjusted group earnings will surpass €11bn. Nonetheless, E.ON foresees a slight decrease in adjusted EBITDA for 2024, projecting figures between €8.8bn and €9bn, a decline from €9.4bn in 2023.

Source: E.ON

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