An electrical power pylon with high-voltage power lines is seen next to wind turbines near Weselitz, Germany November 18, 2022.
Moving away from fossil fuels will require laying thousands of new and stronger power lines carrying electricity from source to end users.
Putting the additional earnings on Prysmian’s expected EBITDA multiple for 2026 of 8 times would generate an additional enterprise value of 2 billion euros, nearly 20% above today’s 11.6 billion euros.
One potential snag is that cable makers’ annual capacity for high-voltage cables is currently only 6 billion euros per year.
The volume of high-voltage cable orders has risen to more than 10 billion euros last year from around 3 billion euros in 2019, according to industry and analyst estimates.
Persons:
Lisi Niesner, Prysmian, George Hay, Streisand Neto
Organizations:
REUTERS, Reuters, International Energy Agency, JPMorgan, Reuters Breakingviews, Thomson
Locations:
Weselitz, Germany, Europe, North America, Britain, Denmark, China