Network business increases significantly
Eon increases significantly – forecast raised
May 10, 2023 at 8:08 am
The utility Eon benefited from its investments and catch-up effects at the beginning of the year. The crisis is not over yet, but the group is now aiming for the upper end of all goals. This should even succeed if the overall situation deteriorates again.
After growth in the first quarter, the energy group Eon was more optimistic than before about the course of the financial year. The DAX group is now aiming for the upper end of the forecast range for important key figures. In the first three months, Eon was able to increase adjusted operating profit (Ebitda) by 30 percent to 2.7 billion euros within a year thanks to growth in the business with networks and customer solutions. Thanks to investment-related growth, a recovery in the market environment and catch-up effects in the network business, revenue increased to more than 33.5 billion euros. Adjusted net income increased by more than 50 percent to over one billion euros.
“We have made a successful start to the new financial year,” said CFO Marc Spieker, according to the announcement. “We were once again able to significantly increase the rate of investment activity. We see ourselves on the right track to achieving our operational and financial goals for the full year 2023.” But the crisis is not over yet. For this reason, the forecast also takes into account the possibility of a renewed deterioration in the market environment in the further course of the year. But you see yourself in a good position. The group also sees itself on schedule with the goals for 2027.
The largest contributor to profits in the quarter was again the network business. This was able to improve its adjusted Ebitda by a good third to around 1.9 billion euros. The business with customer solutions doubled to more than 800 million euros
For the full year 2023, the group confirmed its planned investments of around 5.8 billion euros. By 2027, Eon plans to invest a total of 33 billion euros in energy networks and customer solutions. CEO Leonhard Birnbaum relies, among other things, on the connection of renewable energies and digitization.