BKW leaps in profits

BKW expects an operating profit (EBIT) for 2022 of around CHF 1 billion, doubling the previous year’s CHF 395 million. In September, the company reported an EBITDA of 460 to 500 million. Also, the medium-term target is an EBIT of around CHF 800 million, which has also been exceeded.

The company wrote last fiscal year that major turmoil in the energy markets presented major challenges, but also opened up opportunities in managing the energy position of its own power plants. Strong price fluctuations were used optimally by management in order to secure their own energy positions.

This, together with ancillary services provided at higher prices, led to an outstanding trading result for BKW in the fourth quarter. Because the value of ancillary services provided to ensure grid stability has increased significantly thanks to high electricity prices.

Regardless of this performance in managing its energy positions, the company believes it has weathered the market turmoil well so far. The risks associated with the energy crisis will also be continuously monitored.

There was never a need to resort to government support measures, as the collateral required by the exchange was always deposited.

Approximately 300,000 households in BKW’s main supply are not affected by the turmoil in the energy markets, as they receive their electricity from BKW’s own production at tariffs based on production costs. According to BKW, large customers who bought their electricity in 2023 before the crisis were also not affected by the crisis.

On the other hand, large uninsured customers face higher purchasing costs. According to the electric company, these are the result of international market development and not from its own trading business.

Thanks to the outstanding result, BKW plans to significantly increase its investments in the deployment of renewable energies in Switzerland.

Final annual results will be published on March 14, 2023.

(SDA)