E.ON to invest $ 30 billion to prepare networks and customers for a green future

  • Core business adjusted EBITDA reaches € 7.8 billion by 2026
  • Proposes a dividend of 0.49 euro cent for 2021
  • Envisages 2 to 4 billion euros of portfolio adjustment products
  • Goals arrive before capital markets day
  • Flat part

FRANKFURT / DUESSELDORF, November 23 (Reuters) – German energy group E.ON (EONGn.DE) plans to invest around 27 billion euros ($ 30 billion) in its core business, including networks and l retail electricity, by 2026, he announced on Tuesday. , joining rivals in launching ambitious fundraising offensives.

Around 22 billion euros will be spent on E.ON’s electricity and gas distribution network – the largest in Europe – and 5 billion on customer solutions through which E.ON supplies around 50 million customers across the continent.

The investment program comes a week after RWE (RWEG.DE), Germany’s largest electricity producer, planned a € 50 billion spending campaign to expand its renewable energy capacity as European energy companies are stepping up their green energy ambitions. Read more

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Shares of E.ON, which will hold a day in capital markets later on Tuesday, remained stable as trading began in Frankfurt. One trader said the announcement contained “no positive surprises” and investors should be convinced during the day.

As part of the five-year plan, E.ON is also targeting 2 to 4 billion euros in proceeds from asset disposals and partnerships, as well as additional annual savings of 500 million euros by 2026.

The adjusted profit before interest, taxes, depreciation and amortization (EBITDA) of its core business is expected to reach 7.8 billion euros in 2026, which would represent a compound annual growth rate of approximately 4% from 2021 to 2026, a declared E.ON.

“The decarbonization of European economies places the energy sector on the threshold of a key decade of growth,” said Leonhard Birnbaum, who took over as CEO of E.ON in April.

E.ON also proposed to pay a dividend of 0.49 euro per share for 2021, against 0.47 euro for 2020, and in line with the Refinitiv consensus.

Its current dividend policy, which provides for an annual growth rate of up to 5%, will be extended for three years until 2026, he said.

($ 1 = 0.8883 euros)

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Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by David Evans, Mark Potter, Ana Nicolaci da Costa and Louise Heavens

Our standards: Thomson Reuters Trust Principles.

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