Eneco Group on track
Revenues and net profit up in first half 2013
• Net profit up by five percent
• Higher revenues due to cold spring and higher regulated transmission rates
• Cost control programme is on track
• Eneco Group continues major investments in sustainable energy
• Significant decrease in interruption duration
Eneco Group recorded a net profit of € 184 million for the first half of 2013, an increase of € 9 million (5%) compared with the first half of 2012. Revenues rose by € 63 million (2%) to € 2,873 million as a result of higher energy consumption of customers due to the cold spring and an increase in regulated gas and electricity transmission rates. In the first six months of this year, Eneco Group invested € 324 million, which is an increase of € 15 million compared with the same period in 2012.
Chairman of the Board of Management, Jeroen de Haas: 'Eneco is a systemically important company that has a crucial role in society. After all, we guarantee the continuous supply of energy to our customers while keeping their energy bills at a reasonable level. Our strategy is aimed at sustainability. Sustainability for everyone; that is what we strive for every day. The results of this strategy, in combination with a strong focus on cost control, are noticeable. This enables us to continue to grow in challenging market conditions and to continue to invest in sustainable energy projects and innovation, such as the Kreekraksluis wind farm in the municipality of Rilland, the Golden Raand biomass energy plant in the municipality of Delfzijl, the enhancement of the intelligence of our networks and the rollout of our smart Toon thermostat. This way, we not only help our 2.2 million customers to improve the sustainability of their energy supply but, being a systemically important company, also contribute to improving the sustainability of the energy supply of the Netherlands as a whole.’
Eneco Group recorded a net profit of € 184 million for the first half of 2013, an increase of € 9 million (5%) compared with the first half of 2012. Revenues rose by 2% to € 2,873 million (2012: € 2,810 million). The gross margin on sales and transmission of gas, electricity and heating and related activities rose by € 108 million (13%) to € 915 million, mainly as a result of higher energy consumption and an increase in regulated transmission rates. At € 706 million, operating expenses were slightly higher than in the first half of 2012 (€ 681 million) due to growth in our activities. The increase was limited, thanks in part to a cost control programme that started last year. Operating profit before depreciation and amortisation (EBITDA) was € 478 million, up € 83 million (21%) on the first half of 2012. Lower interest rates and higher capitalisation of interest on major investment projects meant that net financial expenses fell slightly to € 44 million (2012: € 49 million). Although EBITDA was up by 21%, the improvement in net profit was limited to 5% since there had been the positive effect of non-recurring income on the sale of the participating interest in KEMA last year.
Our production, trading and supply activities
The temperature was below the long-term average in every month of the first half of the year and so our customers used more gas and heating. The wind was stronger than last year, resulting in a better performance of our wind turbines, although the quantity of wind remained below the long-term average. Solar energy also contributed to the result. Operating expenses were at the same level as in 2012 and so EBITDA on our production, trading and supply activities was positive, up from € 147 million in the first half of 2012 to € 190 million in the first half of 2013.
Our network and engineering activities
Revenues from our network activities went up over the first half year as a result of the rise in regulated rates. The duration of energy supply interruptions fell compared with 2012, as a result of which we had to pay less compensation. The average interruption duration due to faults in Stedin’s electricity network fell from 24.6 minutes per customer in the first half of 2012 to 9.1 minutes this year.
We took a range of measures in 2012 to improve efficiency in our engineering activities and these brought results in the first half of 2013. In difficult market conditions, revenues rose and the capacity result improved. Eneco entered into major contracts with TenneT for the construction of a new high-voltage link to the island of Goeree-Overflakkee (€ 40 million) and with Total Antwerp for the construction of two switching stations (€ 25 million).
EBITDA on network and engineering activities rose by € 32 million to € 297 million in the first half of 2013.
Eneco's aim is to improve the sustainability of the energy supply and so we continue to make major investments in sustainable energy generation, in energy saving and in a reliable, modern network. In the first six months of this year, we invested € 324 million (first half 2012: € 309 million) in property, plant and equipment and intangible assets, including development of wind farms (€ 65 million) in the Netherlands, Belgium and the United Kingdom, the Bio Golden Raand biomass power plant (€ 25 million) in the municipality of Delfzijl, which will come on stream in the third quarter of 2013, and heating networks (€ 19 million), including the Leiding over Noord pipeline for the transmission of heat from the Botlek industrial area to Rotterdam, the construction of which will start soon. We also invested in improvements and expansion of the electricity and gas networks (€ 192 million; 2012: € 158 million).
In the first six months of 2013, we noted a slight increase in the number of customers, mainly from our activities in Belgium. In the business market, we concluded contracts with Mitsubishi Corporation (Eneco Luchterduinen), AVR (Heating) and Woonbron (ESCO). With Akzo we concluded an agreement for the purchase of some 50% of the electricity output of Bio Golden Raand. A number of joint ventures were also set up with energy co-operatives such as Lochem Energie, Eerbeek-Brummense Energie Maatschappij (EBEM) and Veemstroom. Eneco is making the engagement of people living near wind farms a major spearhead of its strategy. One example of this is the start of a bond programme for residents of Houten.
We are confident of further developments at Eneco Group. In addition, investment in sustainable energy will be stimulated in the second half of 2013 as a result of tax incentives. Our expectation is that, in normal circumstances, the net profit for 2013 will at least equal that of 2012.
Enclosed: full press release including key figures + consolidated income statement + consolidated balance sheet + consolidated cash flow statement.
The mission of Eneco Group (http://www.eneco.com/Pages/Default.aspx) is sustainable energy for everyone. Our vision is the local and sustainable development of the energy supply through collaboration. All the parts of Eneco Group (Eneco, Stedin, Joulz, Oxxio and Ecofys) are committed to this sustainability oriented mission and vision.