© Reuters.
By Scott Kanowsky
Investing.com — Shares in Elia (EBR:) jumped on Friday after the Belgian electricity transmission system operator raised its full-year guidance and outlined a new five-year spending plan.
In a statement, the Brussels-based company said it now expects to deliver an adjusted return on equity of between 7.1% and 7.5% in 2022, slightly above its prior goal of 6.25% to 7.25%. The elevated outlook is due in part to an upward revision in the expected performance of the firm’s German operations.
Elia also detailed its capital expenditure plans for both Belgium and Germany, estimating that it will spend €15.9 billion (€1 = $1.0358) from 2023 to 2027 to align with European renewable energy and decarbonization targets. It argued that the current spike in fuel costs stemming from the war in Ukraine has highlighted the need for a faster change in region-wide energy policies.
“It will not only reduce our dependence on fossil fuels, it will also ensure more stable and affordable prices and protect against price inflation in the gas and electricity markets,” Elia said.
“An accelerated energy transition will therefore grant European industry a great opportunity to make their processes more sustainable and anchor their businesses in Europe, directly contributing to employment, prosperity and security of supply.”
Be the first to comment