Elia shares soar after €2.2 billion equity package announcement
Shares in Belgian power grid company Elia Group jumped as much as 19 per cent on Friday after the company announced a 2.2 billion euro equity package to fund its extensive investment plans.
The Elia Group, which manages the high-voltage grid in Belgium and part of Germany, is planning to increase its investment plans for the coming years. In order to realise these plans, the group will increase its capital by 2.2 billion euros, the company announced on Friday when it published its annual results.
The grid operator plans to invest 31.6 billion euros between 2024 and 2028, slightly more than previously announced. Last year, Elia Group invested more than 4.8 billion euros, and it will invest around 26.8 billion euros more in the coming years.
Funding infrastructure investments
To meet its investment plan, the group will carry out a capital increase of 2.2 billion euros this year, starting with a private placement of new shares to a select group of investors at 61.88 euros per share.
The selected investors include the American investment company BlackRock, the Canadian investment fund CPP Investments and Elia Group's reference shareholder, Publi-T/NextGrid Holding. The placement will be followed by a rights issue.
Part of the investment will go into the Princess Elisabeth offshore wind farm off the coast of Zeebrugge
The capital increase is necessary to "fund infrastructure investments, ensuring grid reliability and advancing clean energy competitiveness," the company said in a press release.
Part of the investment will go into the Princess Elisabeth offshore wind farm off the coast of Zeebrugge, an important infrastructure project to bring wind energy to Belgium. The project has been making local headlines recently as costs have soared to between 7 billion and 8 billion euros.
Strong year
Elia Group posted a net profit of 512.5 million euros in 2024, more than a quarter higher than in 2023. Around 308 million euros of this came from its German subsidiary 50Hertz Transmission, and 213.8 million euros from Elia Transmission in Belgium. Elia's non-regulated segment, which includes the Nemo Link cable under the North Sea, made a small loss. The group is proposing a dividend of 2.05 euros per share.
"Despite the highly challenging context, 2024 was a very strong year for Elia Group, as solid financial results were delivered in both Belgium and Germany," said CEO Bernard Gustin in a press release.
Investors sent Elia's share price up by as much as 19 per cent after the Brussels stock exchange opened
The group's outlook for 2025 projects a net profit Elia Group share between 490 million and 540 million euros. This profit figure - which is not the same as net profit - came to 421.3 million euros last year, well above the group's own forecast.
Investors responded enthusiastically to the news, sending Elia's share price up by as much as 19 per cent after the Brussels stock exchange opened. At around 14.00 Brussels time, shares were trading at 73.60 euros, an increase of around 14 per cent.
The construction site of Elia Group's Princess Elisabeth Island in Vlissingen, the Netherlands, in October 2024 © BELGA PHOTO JONAS ROOSENS
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