Jersey Electricity: Edison
Industrials: Utilities – LSE – M cap £49m – Price 425.00p – Outlook
JERSEY ELECTRICITY
Investing in resilience
(JEL ) is bringing forward capital spending to boost resilience and improve the security of its supply. Our analysis indicates that the £180m capex plan over the next five years, which includes £120m for what is referred to as ‘The Big Upgrade’, is comfortably affordable given the current health of JEL’s balance sheet (gearing peaks at less than 30% in 2029) and should not require above-inflation retail price increases beyond 2025. JEL beat our expectations for FY24 earnings, and looks well hedged to price exposures for the next two years.
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