Axpo’s earnings fell sharply in the first half of 2023/24, mainly due to lower electricity and gas prices.

Axpo earned significantly less in the first half of the 2023/24 financial year. In the previous year, Switzerland’s largest energy company had experienced high special factors following the turbulence on the energy markets.

Axpo’s total operating revenue fell from CHF 6.50 billion to CHF 4.22 billion in the first half of the year, mainly due to significantly lower electricity and gas prices.

Earnings before interest and taxes (EBIT) fell to CHF 1.30 billion from CHF 3.85 billion in the same period last year. Net earnings were CHF 1.22 billion, down from CHF 3.21 billion. Last year’s profits had been boosted by accounting shifts due to the calming of European energy markets. These shifts had a negative effect of 338 million in the current reporting period.

Funds for decommissioning and disposing of nuclear power plants positively impacted results by CHF 159 million. EBIT adjusted for special effects was CHF 1.48 billion, down from CHF 2.24 billion.

With the mild winter, energy markets normalized and prices approached pre-crisis levels. Volatility decreased significantly. Operationally, Axpo performed well, with all business areas contributing positively.

The global political situation remains unstable, and future developments are uncertain. Due to the seasonal nature of the business, second-half results will be lower. However, rising electricity prices from 2022 are expected to positively impact earnings from the 2024/25 financial year.

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