The German Energy Company E.ON Has Announced an Increase in Its Investments in Europe, with a Focus on Germany. At the Same Time, the Company Expects Its Profits to Normalize by 2024.

Overall, E.ON plans to invest around 42 billion euros ($45.90 billion) for the period from 2024 to 2028. The focus will primarily be on energy supply networks and solutions for energy infrastructure. Previously, the company had announced investing a total of 33 billion euros by 2027.

E.ON announced on Wednesday that around 70% of its investments are to be made in Germany. Of the 42 billion euros, 34 billion will flow into the power supply network business. Another 5 billion are earmarked for solutions in energy infrastructure, such as digitalization programs, the introduction of smart meters, and charging solutions for electric mobility.

Moreover, the company proposes a dividend of 0.53 euros per share for 2023, compared to 0.51 euros per share in 2022. For the remainder of the year, E.ON expects its profits to normalize. The company anticipates an adjusted EBITDA of 8.8 to 9.0 billion euros, which is expected to increase to more than 11 billion euros by 2028. For this year, an adjusted net profit of 2.8 to 3.0 billion euros is anticipated.

This forecast follows a decline in profits last year. In November, E.ON warned of lower wholesale prices that would negatively impact the fourth quarter results. The net profit for 2023 amounted to 517 million euros, compared with 1.83 billion euros in the previous year, with a sales decline of 19% to 93.69 billion euros. As already announced last month, the adjusted net profit stood at 3.1 billion euros and earnings before interest, taxes, depreciation, and amortization at 9.4 billion euros.