E.ON to Invest €42 Billion in European Energy Transition, Surpasses 2023 Earnings Expectations

E.ON to Invest €42 Billion in European Energy Transition, Surpasses 2023 Earnings Expectations

(IN BRIEF) E.ON, a major player in Europe’s energy sector, plans to increase its investments from €33 billion to €42 billion for 2024-2028, focusing on energy networks and infrastructure. The company exceeded earnings expectations in 2023, with adjusted Group EBITDA reaching €9.4 billion and adjusted Group net income hitting €3.1 billion. CEO Leonhard Birnbaum attributes the success to their strategic investments and operational performance. About 3,000 new employees were hired, and an increased dividend of €0.53 per share is proposed for 2023. Looking ahead, E.ON aims to continue its growth trajectory, investing in network expansion and renewable energy solutions to shape the future of Europe’s energy landscape.

(PRESS RELEASE) ESSEN, 13-Mar-2024 — /EuropaWire/ — E.ON (ETR: EOAN), one of Europe’s largest operators of energy networks and energy infrastructure, has announced an ambitious plan to increase its planned investments across Europe from €33 billion to €42 billion for the years 2024 to 2028. These investments will primarily focus on energy networks and infrastructure solutions, with approximately 70% of the investments allocated to Germany.

The company’s successful growth trajectory was reaffirmed with its financial performance in 2023, where it surpassed forecasts. Adjusted Group EBITDA reached €9.4 billion, exceeding expectations, while adjusted Group net income stood at €3.1 billion. CEO Leonhard Birnbaum attributed this strong result to the company’s operating performance and successful investment and growth strategy.

CEO Leonhard Birnbaum affirmed at today’s annual press conference: “We again defied challenging circumstances in the financial year 2023. And we again delivered very good results that exceeded our expectations. For this, we owe our employees a big thank you. This result is proof of our operating performance and the success of our investment and growth strategy. It also shows that we increasingly benefit from our consistent strategic focus on energy networks and sustainable energy infrastructure and customer solutions. This makes E.ON one of the leading companies for the energy transition in Europe.”

Birnbaum spoke positively about E.ON’s future business outlook: “What Europe needs now is intelligent energy infrastructure for sustainable, secure, and affordable energy. This is exactly what E.ON delivers, and we continue to systematically pursue this course. This means that we will continue to make massive investments to meet the rapidly growing demand for energy infrastructure. But it also means that we’re leading the way where others are hesitating. Playing a pioneering role in the energy transition makes E.ON strong.”

In line with its growth, E.ON has hired about 3,000 additional employees. Looking ahead, the company expects adjusted Group EBITDA for the financial year 2024 to range between €8.8 to €9.0 billion, with adjusted Group net income projected to be between €2.8 to €3.0 billion.

CFO Marc Spieker said: “E.ON looks back on a strong financial year 2023, in which we grew in almost all European markets. The outlook for the years ahead is very promising as well. Our network business is a growth business that is in the focus of attention for policymakers, the public, and investors. Our energy networks are system-critical for the energy transition, and we’ve again proven that we can successfully and cost-efficiently expand them. In view of Europe’s energy and climate targets, we expect our business with sustainable customer and energy infrastructure solutions to generate significant earnings growth in the medium term.”

The company’s strategic focus on energy networks and sustainable infrastructure solutions has driven its growth. Investments in network expansion, modernization, and digitalization have been significant contributors to this growth. The Energy Networks segment saw a €1.2 billion year-over-year increase in adjusted EBITDA, reaching €6.6 billion. Similarly, the Customer Solutions segment experienced a €1.1 billion increase in adjusted EBITDA, reaching €2.8 billion.

Looking forward, E.ON aims to continue its growth trajectory, with plans to invest heavily in network infrastructure and energy solutions. The company aims to install more than one gigawatt of new renewables capacity by 2028, with a focus on solar energy.

E.ON’s commitment to its shareholders is evident with the proposal of an increased dividend of €0.53 per share for 2023. This proposal aligns with the company’s target of increasing the dividend by up to 5 percent annually through 2028, demonstrating its dedication to delivering value to its shareholders.

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to align them to future events or developments.

Media contact:

Isabel Reinhardt
Spokeswoman
isabel.reinhardt@eon.com
tel:+49 1736840253
https://www.linkedin.com/in/isabel-reinhardt-86499a170/

SOURCE: E.ON SE