Energy industry: Eon increases investments: billions for electricity distribution network

Germany’s largest electricity supplier and network operator Eon sees itself on track to achieve its goals after the first nine months of the current year. However, after the special boom in 2023 as a result of the increased energy prices due to the war in Ukraine, Eon is expecting weaker results this year. At the same time, Eon is investing more: in the first three quarters, the DAX group increased its investments by 20 percent to around 4.7 billion euros. Of this, 3.6 billion went into the network business alone.

The energy giant, headquartered in Essen, has around twelve million electricity and two million natural gas customers in Germany. Eon is also the largest electricity distribution network operator in Germany: at 32 percent, almost a third of the distribution network belongs to the group. All power grid levels below the transmission grid are referred to as the distribution network. The electricity distribution network plays an important role in Germany’s energy conversion towards climate neutrality: almost all wind and solar systems feed their electricity into the distribution network. Eon is also one of the largest charging station operators.

For this year, Eon expects adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of between 8.8 and 9.0 billion euros and an adjusted consolidated net profit of between 2.8 and 3.0 billion euros, as Eon announced in Essen. After nine months, this value was 2.2 billion euros, 25 percent less than in the same period last year.