EnBW stock rises on profit outlook and capital talks

Published 26/03/2025, 11:22
© Reuters.

Investing.com -- Shares of German utility EnBW (EBK) climbed during Wednesday’s trading session following the company’s announcement on Wednesday that its core profit could see an increase of up to 8% this year.

Shares were seen trading in the red before surging on the earnings announcement. At 10:20GMT, shares were up by 0.3%.

The Karlsruhe-based energy company also revealed ongoing discussions with its principal shareholders, the state of Baden-Wuerttemberg and local municipalities, regarding a potential capital increase of approximately 3 billion euros ($3.2 billion). The capital boost is intended to fund further growth.

Despite a notable 30% drop in profitability within its renewable energies division for 2024, primarily due to lower earnings from pumped storage power plants, EnBW reported an adjusted EBITDA for the division at around €1.2 billion.

The decline in the renewable segment was offset by the strength of the company’s integrated portfolio, which allowed for strategic investment allocation among segments to optimize return performance.

EnBW’s chief executive Georg Stamatelopoulos emphasized the company’s strategic approach, stating, "Thanks to our integrated portfolio, we are able to allocate investment among the segments for optimum return performance, resulting in solid financial performance and reliable returns."

He further highlighted the benefit of a diversified lineup in smoothing out market-driven fluctuations, which enhances the resilience of the business and maintains a balanced opportunity/risk ratio across the portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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