E.ON, the German energy company, has announced an increase in its investment target for the full year. It plans to invest a total of 6.1 billion euros ($6.53 billion), up from the previously announced EUR5.8 billion. Additionally, E.ON has outlined its long-term investment strategy, revealing that it expects to invest EUR33 billion in energy networks and customer solutions from 2023 to 2027.
However, despite these positive developments, E.ON also highlighted potential challenges in its customer solutions business. The company has implemented price reductions for millions of electricity and gas customers in recent months, which will have a significant negative impact on earnings due to the pass-through of lower wholesale prices.
Nevertheless, E.ON remains confident in its earnings guidance for the year. The company acknowledges the potential risks associated with the energy market, including increased volatility caused by supply and demand uncertainties as well as geopolitical tensions.
In the third quarter, E.ON reported a net profit of EUR81 million, a considerable decline compared to EUR1.56 billion in the previous year. Adjusted net profit was EUR634 million. The company's adjusted earnings before interest, taxes, depreciation, and amortization increased slightly to EUR2.12 billion, while adjusted EBIT reached EUR1.38 billion, representing a 2% increase compared to the previous year. Sales in the quarter amounted to EUR16.88 billion, down from EUR28.75 billion.
Despite these challenges, E.ON is focusing on its long-term investment strategy and is dedicated to providing energy solutions for its customers.