Romande Energie at a loss for the half-year
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- 05 Sep 2022
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Because of its stake in the Alpiq Group, the French-speaking Swiss energy company Romande Energie slipped into the red in the first half of the year. (archive image)
In the first half of 2022, Romande Energie’s sales increased by 16 percent year-on-year to CHF 347 million. Romande Energie announced on Monday that the increase was mainly due to its stake in the Hongrin-Léman pumped storage power plant and stakes in wind and hydroelectric power plants in France, as well as the sale of electricity futures contracts. Here, the company benefited from the sharp rise in electricity prices.
However, operating profit was impacted by record-low rainfall, resulting in a significant drop in hydroelectric power generation. A replacement had to be procured at high market prices. Thanks to the diversification, Romande Energie has “never held its own well in this difficult environment”.
The company still achieved an EBIT of CHF 24 million (-23%). The bottom line is that the French-speaking Swiss company made a loss of 46 million after a profit of 45 million in the same period last year.
This was essentially due to the result of the associated companies. The losses at the energy group Alpiq burdened Romande Energie with 70 million Swiss francs. After deducting the stake, the net profit would have been 24 million.
Romande Energie holds a 29.7 percent stake in EOS Holding, which in turn holds a one-third stake in Alpiq. Alpiq had suffered a loss of over 500 million francs in the first half of the year. However, due to the strong turbulence on the energy markets, this is mainly due to accounting. Romande Energie also writes that these effects, which are related to the accounting of energy derivatives, should be largely offset by the end of 2024. Read More…
