Eminent Eon leader voices opposition to reinstatement of nuclear energy.
In the 2023 political landscape of Germany, the CDU, led by Friedrich Merz, is contemplating the potential reopening of previously shuttered nuclear power plants. This proposition, however, faces significant obstacles in the form of regulatory hurdles, technical complexities, and financial constraints. The CDU also highlights the importance of investigating advanced nuclear technologies such as nuclear fusion and small modular reactors as part of their long-term energy plan[1][3][4].
Contrary to these considerations, Eon CEO Leonhard Birnbaum has publicly expressed his skepticism. "I've got nothin' good to say about a moratorium on shutdowns," he stated at the annual press conference in Essen. "We're committed to a clear phase-out, and we've no desire to introduce political delays into our phase-out process."[2]
Eon, a prominent energy giant, reported impressive financial results in their recent fiscal year. Despite generating a billion-dollar profit, the adjusted EBITDA saw a three-percent decline compared to the previous year, reaching nine billion euros. Analysts had predicted an even more substantial decline, but the adjusted consolidated net profit only dropped by seven percent, totaling 2.9 billion euros[2].
With renewed ambition for growth, Eon aims to increase its underlying adjusted EBITDA annually between 2024 and 2028 in the high single-digit percentage range[2]. This growth is expected to translate into higher dividends for shareholders, with a projected payout of 0.55 euros per share for the previous year[2].
The network business serves as the primary growth driver for Eon. The immense demand for network expansion and digitization guarantees continued investments in this realm, provided that favorable regulatory conditions develop[2]. The CEO highlighted the importance of a competitive return on network investments to attract sustained investment in the future regulatory period, which commences in 2029[2].
Despite these plans, Eon has opted to restrain its investment program announced in March 2024 due to the lack of clarity surrounding German regulation[2]. In the current year, Eon anticipates an adjusted EBITDA between 9.6 and 9.8 billion euros, with an adjusted consolidated net profit ranging from 2.85 to 3.05 billion euros[2].
As the largest electricity grid operator in Germany and a prominent operator of charging stations, Eon serves approximately 12 million electricity customers and two million gas customers within the country[2]. The energy giant remains steadfast in its resolve to navigate the complex landscapes of energy policy and market dynamics, bearing witness to the ongoing debates about nuclear power and its potential future role in the German energy mix.
- Despite the CDU's contemplation of restarting nuclear power plants by 2029, Eon's CEO, Leonhard Birnbaum, has expressed skepticism towards any delays in their phase-out process.
- In their financial report, Eon, an energy company, mentioned amortization as one of the factors contributing to the three-percent decline in their adjusted EBITDA in 2023, despite generating a billion-dollar profit.
- In their long-term energy plan, the CDU emphasizes the importance of investigating advanced nuclear technologies like nuclear fusion and small modular reactors, which could potentially impact nuclear energy companies' financial strategies, such as Eon's, by 2029.
