Elia Group FIRST REACTION: Results tracking slightly ahead, upgrade to Accumulate
Elia Group reported 1H23 Net profit to shareholders of 162.5m vs. our 154.9m expected and 1H23 EPS of 2.21 beat our estimate of 2.11. The net profit contribution of 50Hrtz and the Non-regulated largely explain the difference. The FY23 outlook is reiterated at adj. ROEs: 6.0%-7.0% The Capex in GE is running a bit faster at 1.7bn vs. 1.5bn expected over 1H23. The LT Capex plans remain unchanged for now (15.9bn till 2027), but Elia hints that the second draft of the German Grid Development Plans could increase the LT GE Capex needs. It is clear that this will need extra capital injections over time, but most likely not over FY23. We expect authorities to accelerate the energy transition investments over the mid-term. The 1H23 results confirms the company's status as a ‘safe haven' in uncertain times. We maintain our EUR 132 target price, but upgrade from Hold to Accumulate after a period of relatively weak share price performance. Elia will hold a capital markets day in December with a focus on the German regulatory framework. By then, the new calculation proposal should have been cleared. Analyst call at 10H30.Elia System Operator develops, operates and maintains very-high-voltage (380 kV, 220 kV and 150 kV) and high-voltage (70 kV, 36 kV and 30 kV) networks, providing its customers with consultancy and engineering services. Whether in Belgium, Germany or elsewhere in Europe or the U.S., Co. ensures that electricity flows reliably from energy producers to distributors and large corporate customers. Co.'s main activities include transmission operator, system operator and market facilitator, developing and maintaining grid infrastructure, connecting electrical installations to grids, providing transparent access to grids, while taking initiatives to improve electricity market operations.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.