Elia Group (ELI) H1 2024 earnings summary

Executive summary

• Net profit attributable to Elia Group share rose 11.8% year-over-year to €181.6 million, driven by strong segment performance and record investments in grid expansion, offshore projects, and digital innovation.

• Group investments reached €1,735.9 million in H1 2024, more than doubling year-over-year, with major allocations in Belgium and Germany for grid reinforcement and offshore wind integration.

• Full-year net profit guidance was revised upwards to €355–395 million, reflecting strong operational and financial performance.

• Major focus on digitalization, talent management, and supply chain resilience, including participation in a €200 million venture capital fund and recognition as a Top Employer in Belgium.

• Multiple entries into the debt market and robust liquidity support upcoming grid investments and inorganic growth.

Financial highlights

• Group revenues reached €1,914.3 million (+9.6% yoy), with a 16% increase in Belgium and a 7% decrease in Germany due to lower energy prices.

• Adjusted net profit grew 9.6% to €218.8 million; EPS increased 11.7% to €2.47.

• Net debt (excluding EEG) increased by 19.8% to €10,773.4 million, mainly due to CapEx and the energyRe Giga investment; average cost of debt rose to 2.8%.

• S&P rating: BBB/stable outlook; fixed debt ratio: 97.7%.

• Free cash flow was negative across segments, reflecting heavy CAPEX and investment outflows.

Outlook and guidance

• 2024 net profit guidance raised to €355–395 million, with adjusted ROE expected between 7% and 8%.

• Belgium: net profit guidance €200–220 million, CapEx of €1.4 billion, OLO around 3%.

• Germany: net profit guidance €260–290 million, CapEx of €3.3 billion, base rate 2.79%.

• Non-regulated segment and Nemo Link expected to report a loss of €30–35 million, with Nemo Link contributing around €30 million profit.

• No equity raise planned for 2024; capital increase possible from 2025, with €4–4.5 billion targeted over five years.