Jersey Electricity (JEL): Modelling of 2030 net...

Edison Investment Research Limited Jersey Electricity (JEL): Modelling of 2030 net zero implications 04-Jun-2021 / 07:00 GMT/BST London, UK, 4 June 2021 Jersey Electricity (JEL): Modelling of 2030 net zero implications Jersey Electricity (JEL) has consistently delivered a 5% increase in its DPS and with dividend coverage above 2.0x EPS is well placed financially to produce future returns to shareholders. It has a strong balance sheet and its grid infrastructure is well invested. Electrification of Jersey's heating and transport systems to achieve the government's ambition of net zero carbon emissions by 2030 provides an opportunity for growth. Based on our detailed modelling, we estimate that full electrification of these two areas could increase electricity demand by 477GWh pa (or 477 million units of electricity), representing a 77% increase on the 619m units sold by JEL in FY20. JEL trades at a discount to our asset-based sum-of-the-parts and DCF valuations. Our overall valuation analysis (based on SOTP and DCF) suggests a share valuation of 785p. We cross-check this with a peer valuation of 794p. The current share price appears modest for a company that offers the prospect of above-inflation increases in DPS, possesses balance sheet flexibility and is well positioned to benefit from decarbonisation initiatives.  Click here to view the full report or here to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: James Magness [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group-/ Twitter   www.twitter.com/Edison_Inv_Res YouTube  www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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