E.ON: net profit in 2023 at €3.1 billion (+14%); for 2024, profits expected between €2.8 and €3 billion.
In the fiscal year 2023, E.ON recorded a net profit of €3.1 billion, up 14% from the €2.7 billion achieved in the previous year.
The group's adjusted EBITDA also increased to €9.4 billion, exceeding the previous year's figure by €1.3 billion, which was €8.1 billion (+16%). Energy Networks' EBITDA stood at €6.6 billion (+22%), while Customer Solutions' EBITDA was €2.8 billion (+66%).
These are some of the figures published in the company's Integrated Annual Report 2023, showing that the results of both business areas of the group, Energy Networks and Customer Solutions, were higher compared to 2022.
However, sales are down, decreasing by 19% to €93.7 billion. Energy Networks sales increased by 26% to €17.6 billion, while Customer Solutions sales decreased by 14% to €64.6 billion.
Investments totaling €6.4 billion increased by about one-third compared to the previous year (€4.8 billion). Energy Networks' investments, totaling €5.2 billion, exceeded the expected figure of €4.6 billion and were 35% higher than in 2022. They were mainly allocated to network expansion, modernization, and digitalization. E.ON also increased investments in Customer Solutions by 35% to €1.1 billion, with approximately €700 million allocated to Energy Infrastructure Solutions, providing decarbonization solutions for commercial customers, cities, and communities.
For the 2024-2028 period, the group intends to increase planned investments in Europe by 30% compared to the previous five-year plan. E.ON plans to invest €42 billion instead of the originally hypothesized €33 billion, focusing on networks and solutions for energy infrastructure. About 70% of investments will be made in Germany. Additionally, around €5 billion will be allocated to the Energy Infrastructure Solutions segment. Other investments will involve digitalization projects, the introduction of smart meters, and intelligent charging solutions for electric mobility.
Finally, for the fiscal year 2024, a net profit between €2.8 and €3 billion is expected, with adjusted EBITDA between €8.8 and €9 billion. It is expected to surpass €11 billion by 2028. Energy Networks business should achieve profits between €6.7 and €6.9 billion in 2024 and exceed €8 billion by 2028. Starting from 2024, E.ON will split Customer Solutions data into two segments: Energy Retail and Energy Infrastructure Solutions. The former should achieve adjusted EBITDA between €1.6 and €1.8 billion in 2024 and surpass €2 billion by 2028. The Energy Infrastructure Solutions segment should achieve profits between €550 and €650 million and exceed €1 billion over the next five years.
"In the 2023 financial year, we also faced challenging conditions," said Leonhard Birnbaum, CEO of the E.ON group. "And once again, we achieved excellent results, even surpassing our expectations. For this, we must thank our employees. This result is evidence of our operational performance and the success of our investment and growth strategy. It also demonstrates that we are increasingly benefiting from our strategic focus on energy networks, sustainable energy infrastructure, and customer solutions. This makes E.ON one of the leading companies in the energy transition in Europe."
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