Germany’s EON invests €2.9b in H1 to enhance power grids

The German utility EON SE significantly increased its investments by over 20 per cent in the first half of 2024, reflecting its commitment to expanding its extensive network of cables as part of the energy transition.

The company invested €2.9 billion in this period, focussing on enhancing energy grids to support Europe’s push towards climate neutrality by mid-century.

As one of Europe’s largest distribution grid operators, EON plays a critical role in the continent’s electrification efforts. The company’s CEO, Leonhard Birnbaum, emphasised the need for unprecedented private investment to support this generational project.

In March, EON outlined a substantial investment plan of approximately €42 billion through 2028, primarily targeting German projects and the improvement of energy infrastructure.

Analysts at Bernstein recently upgraded EON’s stock to “outperform,” citing the company’s strong position to benefit from Germany’s acceleration of electricity distribution investments.

AEON’s shares have risen 1.9 per cent this year, outperforming the Stoxx 600 Utilities Index, which has decreased by 1.6 per cent.

However, the company’s second-quarter adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 14 per cent year-on-year to €4.87 billion, due to positive one-off effects in the previous year. Despite this, EON maintains its full-year profit forecast of €8.8 billion to €9 billion.

Attribution: Bloomberg

Subediting: M. S. Salama