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RBC Highlights Grenergy Growth Plans, Strong Severn Trent Results

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RBC expects Grenergy to unveil a 4.1 billion euro ($4.76 billion) investment expansion next week while lifting its 2028 EBITDA run-rate target to 600 million euros to 650 million euros, it said in a Wednesday note.

The plan should remain fully funded through asset rotations and lower battery costs, while Chilean data center demand and hybrid solar projects could add further upside, RBC said.

Severn Trent reported fiscal 2026 underlying profit before interest and tax of 861 million British pounds, above the 847 million British pounds company consensus, while adjusted earnings per share reached 184.4 pence versus 176.9 pence expected.

The utility spent 1.95 billion British pounds in capital expenditure during the year and ended the period with net debt of 10 billion British pounds, the note added.

Severn Trent raised fiscal 2028 earnings per share guidance to 250 pence from 224 pence after expanding a cost program targeting 150 million British pounds in savings by 2030 and hedging 90% of energy costs through fiscal 2029.

Grenergy signed its first large-scale US power purchase agreement with Georgia Power covering about 400 GWh annually from the Beaver Creek hybrid project over a 20-year period, according to the note.

The Beaver Creek site combines 229 megawatts of solar capacity with 183 MWh of battery storage and should begin operations in the Q3 of 2028, RBC added.

EDPR agreed to sell EDPR Brasil to EDP Brasil for 4.1 billion Brazilian reais, implying an enterprise value of 1.5 billion euros, in a transaction expected to close by year-end 2026, the note said

EDPR said the sale improves financial flexibility and sharpens its focus on core growth markets, after excluding Brazil from its 2026-28 business plan due to capacity additions.

The company expects the transaction to increase earnings by a low to mid-single-digit percentage from year one, according to the note.

Britain's National Audit Office estimated Sizewell C electricity costs at 131 British pounds to 155 British pounds per MWh in 2024/25 prices, above the 129 British pounds per MWh expected from Hinkley Point C.

The watchdog also said Sizewell C may not become fully operational until 2039 despite earlier government guidance pointing to a startup in the mid-to-late 2030s, according to the note.

RBC added Enel launched 2.5 billion euros of bonds across two tranches with an average coupon of 3.688% and average maturity of about 5.5 years.

The issue includes 1.25 billion euros maturing in May 2030 with a 3.59% yield and another 1.25 billion euros maturing in May 2033 with a 3.96% yield, the note said.

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