E.ON to invest US$30 billion in energy transition until 2026

German energy group E.ON announced on Tuesday plans to invest US $30 billion (27 billion euros) on the expansion of energy networks by 2026. 

The company said it will increase EBITDA in its core business by about 4 percent annually to around €7.8 billion in 2026. The investment will go towards expanding its energy networks and its customer solutions business.

‘The decarbonization of Europe’s economies places the energy industry at the threshold of a key decade of growth. Having roughly 50 million customers in Europe and the continent’s biggest distribution network - which is the backbone of this transition - positions E.ON superbly to seize this opportunity. We can therefore today issue a long term forecast for E.ON that is characterized by continual, profitable growth,” said E.ON CEO Leonhard Birnbaum.

As part  of its announcement, the company said that it expects to generate proceeds of roughly €2 to €4 billion in the next five years. Meanwhile, they will expand charging points by installing up to new 5000 points through 2026.

“E.ON also wants to massively expand its business of providing climate-friendly distributed energy infrastructure solutions by investing €500 to €600 million per year in order to increase this business’s EBITDA contribution by an average of 9 to12 percent percent annually through 2026,” said the company.

Moreover, they intend to increase the company’s dividend by up to 5 percent annually through the 2026 financial year and its earnings per share by 8 to 10 percent annually.

The company said that for the 2021 financial year, they  plan to propose a dividend of 49 cents per share.