Repower looks back on a very good first half year
In the first half of 2024, Repower recorded operating income (EBIT) of CHF 97 million and a group profit of CHF 78 million. The biggest contribution to earnings came from international energy trading. Our hydropower plants generated above-average volumes of electricity. In 2024 we continued to provide our basic supply customers in Graubünden with domestically produced renewable energy at stable tariffs below the Swiss average.
Repower can look back on a successful first six months of 2024. With operating income of CHF 97 million (versus CHF 220 million for the first six months of 2023), the company recorded one of the best half-year results in its history, despite sharp declines in energy prices. Group profit likewise came in at a very good CHF 78 million (CHF 181 million [restated]). Equity now comes to CHF 1.2 billion and the equity ratio to 47 per cent. Repower thus continues to be in an extremely robust position.
Very good results from Trading
Repower’s trading department once again recorded a very good result and made the biggest contribution to earnings. The situation on the energy markets normalised in the first half of 2024. Repower pursued a far-sighted trading strategy during the turbulence on the energy markets two years ago. This sustainable strategy has also paid off this year.
Above-average volumes of electricity generated
Electricity generation was also above average, with Repower producing significantly more power than the previous year, particularly at its Graubünden hydropower plants. This is due among other things to the successful completion of the total modernisation of Robbia hydropower plant in the Valposchiavo, which after four years of work has been back in full operation since the beginning of June 2024. Investment in the modernisation is running at some CHF 115 million, the biggest investment in renovation in the history of the company. With the completion of the total modernisation it will be possible to increase the volume of electricity generated at Robbia plant by 10 per cent to around 120 GWh.
Large volumes of snow at higher altitudes and lower temperatures in early summer led to a favourable snow melt. In combination with above-average levels of precipitation, this meant that reservoirs filled up more rapidly than in other years.
The volumes of solar and wind power generated in Italy were slightly above prior-year levels. Teverola gas-fired combined-cycle power plant was offline for two months because of scheduled maintenance work. Demand for balancing energy remains very low.
In 2024 Repower continued to provide its basic supply customers in Graubünden with domestically produced renewable energy at stable tariffs below the Swiss average. Repower sells around 15 per cent of its annual production through basic supply. The rest of the electricity is sold via the energy trading business.
No energy transition without a strong distribution grid
In the first six months, Repower invested a total of CHF 28 million, almost CHF 23 million of which went to Switzerland and Graubünden. Of this, CHF 10 million was invested in Repower’s distribution grid. A high level of regular investment in maintenance is required to assure grid reliability. Not only this, but given the heavy demands placed on the distribution grid by the integration of solar installations, heat pumps and electric vehicle charging stations, the energy transition requires ongoing grid expansion. Without a strong distribution grid there cannot be a successful energy transition.
Sharper focus on sustainability in Italy
Repower Italy’s trading result was slightly better than the prior year. There is a growing interest in sustainability in the Italian market, reflected among other things in greater demand for renewable energy and high-quality guarantees of origin. Repower Italy again refined its offering in this highly competitive market. Italy saw another decline in delays in payment in the first six months of 2024. Repower Italy also successfully completed the integration of Erreci S.r.l. and Erreci Impianti S.r.l. and their 42 employees, enabling it to expand its offering of renewable energy solutions. Erreci plans and constructs solar power (photovoltaic) installations for small and medium-sized enterprises in Italy.
Outlook
Repower generally posts better results in the first half of the year than in the second six months. We anticipate a good result in the second half of the year as well.
Click here for the half-year report 2024