Axpo makes record profit thanks to special factors
Published: Monday, Dec 4th 2023, 13:40
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Axpo earned significantly more in the past financial year thanks to special financial effects. In addition, Switzerland's largest energy group was able to terminate the billion-euro credit line provided by the state. Axpo therefore no longer sees any danger of a liquidity bottleneck.
Axpo generated total operating revenue of around CHF 10.5 billion in the 2022/23 financial year to the end of September, almost exactly the same as in the previous year. While prices for electricity and gas were lower than in the record year 2021/22, the utility produced more electricity with its power plants (nuclear and hydropower as well as renewable energy sources). Among other things, the weather played along better, for example in the summer it was wetter than in the previous year, the company said on Monday.
The operating result EBIT rose to 4.19 billion after 1.75 billion in the previous year. The bottom line was a profit of 3.39 billion after 594 million. The record result was driven in particular by the good international customer business, but also by financial effects due to the normalization on the energy markets following the turmoil in the previous year.
Financial result normalizes
The management had already held out the prospect in the previous year that negative accounting losses from hedging transactions from 2021/22 (-1.5 billion) would be reversed in subsequent years and then have a positive impact on earnings. The return on the decommissioning and waste disposal funds thanks to the positive stock market performance also boosted the result.
The origination business in particular, i.e. energy procurement and sales for third parties in numerous countries, is running very successfully, said Axpo CEO Christoph Brand at the annual media conference. The company intends to grow even further in this area.
However, the various financial effects will no longer be repeated in the current financial year, it said. The Group therefore expects a lower result again for 2023/24.
Rescue package canceled
Now that the industry has returned to calmer waters, Axpo has terminated a credit line of CHF 4 billion provided by the federal government, which was never drawn. At Axpo's request, the corresponding order has now been revoked as of December 1, 2023.
During the 2022 crisis, the utilities had to deposit higher collateral with the energy exchanges due to extremely high electricity prices. Axpo therefore asked the Federal Council for temporary liquidity support.
Although this situation has calmed down, Axpo CEO Brand is still concerned. The current expansion of electricity production in Switzerland is far from sufficient. The focus on a single technology entails high costs and risks.
A rapid expansion of renewable energies is essential, said Brand. Because even if the current ban on the construction of new nuclear power plants were to be overturned, it would certainly take 20 years for such a nuclear power plant to be built.
©Keystone/SDA
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