E.ON Plans to Increase Its European Investments to 2028
By Pierre Bertrand
E.ON said that it will increase its investments in Europe, with a majority planned for Germany, and added that it anticipated its earnings in 2024 would normalize.
The German utility said that it will invest 42 billion euros ($45.90 billion) in the 2024 to 2028 period, focusing on energy networks and energy infrastructure solutions.
It had previously said that it expected a total of EUR33 billion in investments to 2027.
E.ON added Wednesday that about 70% of its investments would be made in Germany and that EUR34 billion of the funds would go toward its energy network business.
Around EUR5 billion will be directed to E.ON's energy infrastructure solutions and spending is also planned for digitalization projects, the rollout of smart meters, and intelligent eMobility charging solutions, the company said.
The company added that it would propose a EUR0.53 dividend per share for 2023, compared with EUR0.51 a share for 2022.
For the rest of the year E.ON said it expects its earnings will normalize. It anticipates adjusted earnings before interest, taxes, depreciation and amortization of EUR8.8 billion to EUR9.0 billion, rising to more than EUR11 billion by 2028.
Adjusted net income is expected at EUR2.8 billion to EUR3.0 billion this year.
That expectation comes as the company said profits fell last year. In November E.ON had warned that it expected lower wholesale prices to have what it said would be a significant negative effect on its result in the fourth quarter.
Net profit for 2023 came to EUR517 million, compared with EUR1.83 billion in the prior year, on sales that declined 19% on year to EUR93.69 billion.
On an adjusted basis, and as previously disclosed last month, net income came to EUR3.1 billion and earnings before interest, taxes, depreciation and amortization came to EUR9.4 billion.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
March 13, 2024 02:26 ET (06:26 GMT)
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