E.ON to Invest Around $35 Billion in Energy Transition in Coming Years

By Mauro Orru

E.ON SE is planning to invest 33 billion euros ($35.42 billion) in the coming years as it banks on a turbo-charged energy transition in Europe after a challenging year for energy markets marked by the war in Ukraine.

The German energy company said Wednesday that it would leverage more than 95% of the investment until 2027 to meet the European Union's taxonomy's sustainability criteria.

"Decarbonization, the energy transition, and the expansion of infrastructure must be massively accelerated. For our business, this will mean big growth potential," Chief Executive Leonhard Birnbaum said.

The announcement comes after E.ON posted an annual net profit of EUR1.83 billion, down 61% on the year. Adjusted net income climbed 9% to EUR2.73 billion.

Adjusted earnings before interest, taxes, depreciation, and amortization--one of E.ON's preferred measures of profitability--grew 2% to EUR8.06 billion.

E.ON said it would propose a EUR0.51 a share dividend for 2022, above the EUR0.49 a share it paid for 2021.

Annual sales jumped 50% to EUR115.66 billion.

E.ON said 2023 will also be a crisis year. The company expects adjusted net income of EUR2.3 billion to EUR2.5 billion, and adjusted Ebitda of EUR7.8 billion to EUR8 billion.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

March 15, 2023 02:42 ET (06:42 GMT)

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