EU Energy Sector Specialist Commentary: Oil - Gas - Utilities - Infrastructure

Research evidence excerpt

EU Energy Sector Specialist Commentary: Oil - Gas - Utilities - Infrastructure

Ian Mitchell - Specialist Sales - European Energy AC (44-20) 7134-1356 Europe Specialist Sales J P M O R G A Nian.e.mitchell@jpmorgan.com

J.P. Morgan Securities plc 30 July 2026

VIE, ADP, VINCI, EDPx2, EON AENA, FER, RED, ANE, RWE, ENGI

Ian Mitchell

+44 207 134 1356

ian.e.mitchell@jpmorgan.com

Key Newsflow

• TODAY - DRX, VIE H126 (pre-market), ENEL, ANE H126 (post-market)

• TOMORROW - ENGI H126 (pre-market)

• VIE: Small improvement in FY26 guidance (1H26 First Take). We expect shares to be up slightly today on net positive

results with a ~1% beat at the net income level and a small improvement in the FY guidance for the current net income,

although partially offset by a less favorable working capital evolution y/y. We note that the strong net income is mainly driven

by the improvement in financial costs y/y. As expected, there was a small positive impact (+€4m) from forex in Q2 and a

1.8% negative impact from commodity prices in H1, which we expect to ease through the year. We expect the conference call

to focus on the earnings momentum in H2, updates on Clean Earth consolidation and the disposal program

• ADP - potential for shares to squeeze on better-than-expected Q2 and ERA agreement with the French State; the ART

still needs to provide binding proposal though (research available). ADP reported H1 results ahead of consensus and

announced that it had reached an ERA agreement with the French state with Regulated WACC of 5.8% (vs. 5.9% original

proposal), capex of €8.2bn (vs. €8.4bn) and tariffs to increase by CPI +2.1 points on average across the agreement (vs CPI

+2.6). Overall, we see potential for the shares to squeeze given the better-than-expected results, the updated guidance that