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Elia Group SA/NV (WBO:ELIA) Full Year 2024 Earnings Call Highlights: Strong Growth Amidst Challenges

In This Article:

  • Equity Package: EUR2.2 billion announced, including EUR850 million through a private placement and a EUR1.35 billion rights issue.

  • Investment Total: EUR4.8 billion invested in 2024, with EUR1.2 billion in Belgium and EUR3.6 billion in Germany.

  • Regulatory Asset Base (RAB): Increased by 28% year-over-year to EUR18.5 billion.

  • Net Profit: EUR421.3 million attributable to Elia Group shareholders, with an adjusted return on equity of 8.4%.

  • Earnings Per Share (EPS): EUR5.73, reflecting strong double-digit growth.

  • Revenue: EUR4.1 billion, with a 16% increase in Belgium and a 2% decrease in Germany.

  • Adjusted Net Profit: Increased by 24.6% to EUR512.5 million.

  • Debt Issuance: EUR9.7 billion in sustainable financing, with EUR5.4 billion raised in debt capital markets.

  • Net Debt: Reached EUR13.2 billion by year-end.

  • Cost of Debt: Average cost rose to 2.8%, an increase of 70 basis points.

  • Dividend: Expected to increase to EUR2.05 per share.

  • CapEx Plan: Increased to EUR31.6 billion for 2024-2028, with EUR26.8 billion remaining to be deployed.

  • Germany's Net Profit: EUR307.9 million, accounting for approximately 60% of the adjusted net result.

  • Belgium's Net Profit: EUR213.8 million, contributing roughly 40% of the adjusted net result.

Release Date: March 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Elia Group SA/NV (WBO:ELIA) announced a EUR2.2 billion equity package, including a EUR850 million private placement with high-quality investors, reinforcing confidence in the company's growth potential.

  • The company successfully invested EUR4.8 billion in 2024, demonstrating its commitment to the energy transition and infrastructure development.

  • Elia Group's regulatory asset base grew by 28% year-over-year, reaching EUR18.5 billion, reflecting substantial infrastructure investments.

  • The company achieved a net profit attributable to shareholders of EUR421.3 million, with a strong adjusted return on equity of 8.4%.

  • Elia Group secured EUR9.7 billion in sustainable financing, enhancing its liquidity and funding capabilities for future growth.

Negative Points

  • The energy transition is becoming increasingly complex due to geopolitical tensions and supply chain pressures, impacting project timelines and costs.

  • Rising material costs and inflation have led to significant cost increases, with some equipment prices more than doubling.

  • The company faces challenges in the US market, particularly with offshore wind projects, due to political changes and rising project costs.

  • Elia Group's nonregulated segment, including Nemo Link, reported a net loss of EUR9.2 million in 2024, impacted by additional funding costs.

  • The company postponed the signing of HVDC contracts for the Belgian energy island due to challenging market conditions and cost concerns.