ESSEN (dpa-AFX) - The energy supplier Eon is expecting a decline in profits in its day-to-day business in the current year. However, the Essen-based DAX-listed company expects to perform better than analysts had forecast. In order to achieve the Group's targets, Eon also intends to invest significantly more than expected in the coming years. This was well received on the stock market.

The share price rose by almost 6 percent in the morning. The recovery that began at the end of February thus continued at an accelerated pace. JPMorgan analyst Javier Garrido noted that Eon's management is actually known for its conservative planning, making the growth targets seem aggressive. The forecast for 2028 is 10 percent above market expectations.

Investments totaling 42 billion euros are planned across Europe by 2028, the Group announced in Essen on Wednesday morning. In 2024, 7.2 billion euros are to be invested - analysts had less on the cards for both periods. The company had previously planned to invest 33 billion euros by 2027. For some time now, the DAX-listed company has been extending its investment plans by a further year when presenting its annual figures.

All in all, around 70 percent of the sum now planned for the five years will be invested in the home market of Germany, according to the statement. More than 25 billion euros are to be invested in the German energy grid alone.

The importance of a resilient power grid is increasing, not least due to the move away from energy imports from Russia. For example, Eon is responsible for connecting new solar and wind power plants and modernizing the grid infrastructure. Large investments are also needed to digitalize the planning, monitoring and control of the grids.

After Eon announced surprisingly good preliminary figures for the past year at the beginning of February, the Group expects a decline in operating profit in 2024: in 2024, earnings before interest, taxes, depreciation and amortization and adjusted for non-operating effects (adjusted EBITDA) are expected to be between 8.8 and 9 billion euros. By 2028, the operating result is expected to rise to over 11 billion euros. The average estimate of analysts surveyed by the company was lower for both periods.

The Essen-based company confirmed the preliminary figures for the past year on Wednesday: according to these, the Essen-based company earned just under EUR 9.4 billion in day-to-day business, 16 percent more than in the previous year. Shareholders are to receive a dividend of 0.53 euros per share for the past year.

According to its own information, Eon is one of the largest distribution network operators in Europe with around 1.6 million kilometers of electricity and gas lines in nine European countries. In Germany, the company is the largest distribution network operator. Of the almost 1.9 million kilometers of electricity grid, Eon operates almost 700,000 kilometers. In addition, there are 100,000 kilometers of gas network./lew/tob/mne/mis