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Energy transition: E.on wants to invest 22 billion euros in network expansion

2021-11-23T07:59:40.885Z


The E.on boss promises investors "continuous, profitable growth". The group is investing billions in network expansion and wants to benefit from the energy transition in the long term.


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Wind turbines near high voltage line

Photo: Julian Stratenschulte / dpa

Eight months after taking office, E.on CEO Leonhard Birnbaum presented a billion-dollar growth package.

Germany’s largest energy supplier plans to invest around 27 billion euros by 2026, mostly in expanding the energy distribution network.

"E.on is now starting a comprehensive growth and investment offensive to build a CO2-free, digital energy world," Birnbaum advertised the plans at an event for investors.

"Today we can give a long-term outlook on E.on that is characterized by continuous, profitable growth," announced the manager.

The operating profit should increase annually by four percent to 7.8 billion euros by 2026.

Due to the decarbonization of the national economies, the energy industry is facing a key decade of growth, said Birnbaum, who took over the chief post from long-time CEO Johannes Teyssen in the spring.

The group plans to invest around 22 billion euros in expanding the energy network by 2026.

These electricity and gas networks are regulated.

This means that in Germany, for example, the Federal Network Agency stipulates the conditions under which and at what price electricity and gas providers can use the networks for delivery.

According to its own statements, the authority ensures that "the network operators can master the major tasks of the energy transition without placing excessive financial burdens on consumers."

E.on is Germany's largest electricity and gas provider and by far the largest distribution network operator.

In Europe, the group had more than 52 million customers at the end of June, 14 million of them in Germany.

E.on wants to invest around five billion euros from its growth package in expanding its business with so-called customer solutions, i.e. the sales area.

In parallel with the investment program, E.on wants to generate high income from sales of stores and through cost reductions.

E.on announced a fixed dividend of 49 cents per share to shareholders for the 2021 financial year - E.on paid 47 cents per share for 2020.

The annual dividend per share is expected to grow by up to five percent by 2026.

mmq / Reuters / dpa

Source: spiegel

All business articles on 2021-11-23

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