Thanks to recovery of nuclear power plant funds: BKW energy company sees profit increase

class=”sc-29f61514-0 icZBHN”>

In the first half of 2023, sales reached CHF 2.4 billion, up 6 percent from the previous year, the Bern-based energy supplier said on Tuesday. Operating result EBIT rose 29 percent to CHF 425 million.

As a result, net profit rose to CHF 340 million. That’s almost five times more than twelve months ago (71 million). Profits from nuclear power plant decommissioning and destruction funds have risen again, following the crash last year due to the financial market downturn. The funds are intended to cover the one-day closure of Swiss nuclear power plants. Operators have to pay.

Adjusted for the performance of AKW funds, BKW’s half-year profit is estimated at CHF 304 million. That’s a 60 percent increase.

By numbers, the energy company exceeded the expectations of analysts at all levels.

The energy business was strong once again, almost halving operating profit to CHF 344 million. The group wrote that BKW is making the most of the opportunities, especially in the wholesale markets.

But in the network business, despite slightly higher sales, EBIT fell 7 percent to CHF 76 million. This is due to slightly higher operating costs as well as lower production volumes due to higher temperatures and energy saving measures.

EBIT in the services business fell by a third to CHF 22 million. The group wrote that its services division is exposed to strong economic fluctuations, high material prices and challenging supply chain conditions.

BKW has implemented measures to increase the profitability of the service sector in the long run. From 1 January 2024, BKW Building Solutions will contribute to this by pooling its expertise in heating, ventilation, cooling and sanitation (HVAC) for large-scale plant construction in the Greater Zurich region. BKW Building Solutions thus expands the range of environmentally friendly offers for its customers and increases efficiency in project management.

BKW expects a significantly lower trade and management result in the second half of the year due to the current easing in European energy markets. However, due to the strong half-year result, the energy supplier increases its full-year EBIT forecast by 50 million to between 600 and 650 million.

It will return to normal in 2023 after one-off effects in 2022 that pushed EBIT to 1.04 billion.

(SDA)

Source :Blick