Guy Weicherding, Chief Financial Officer; Credit: Encevo S.A.

Last week, the Luxembourg-based energy provider Encevo Group announced its financial results for 2019; the Group reportedly ended the year with a solid result and confirmed its performance of the previous year in the face of the challenges of an energy market still in full transformation. 

Net profit for 2019 has increased and stands at €67.9 million (compared to €63.9 million in 2018). Earnings before interest and taxes (EBITDA) reached €211.9 million (€213.3 million in 2018). In a highly competitive environment, volumes in terms of energy sales, both for electricity and for natural gas, were comparable to 2018.

The past financial year was marked by new record investments, especially in the area of ​​networks. Creos Luxembourg alone has invested €147 million. The major part of these investments concerned the maintenance, extension and at times modernisation of the networks, especially of the electric and infrastructure networks. In addition, there was the continuous deployment of smart metres (ca. 255,000 metres installed for electricity, ca. 39,500 for gas) as well as public charging stations from the Chargy network (337 charging stations installed). In Germany, Creos continued to modernise its gas network and began studies to accommodate more green gases (biogas and hydrogen). Investments in new customer stations have also been made on the electrical side in Saarland.

Powerful networks are a key element of the energy transition, another being the increase in the share of renewable energies. After successfully commissioning 13.9 MW of photovoltaic power plants in 2019 and 2020, Enovos Luxembourg is starting to build a new series of photovoltaic installations with a total capacity of 19.5 MW by mid-2021 on the territory of the Grand Duchy. The corresponding energy production will be equivalent to the energy consumption of about 4,650 households. In fact, following the second public call for tenders for photovoltaic installations, Enovos will carry out nine additional projects with different partners (eg ArcelorMittal, Arthur Welter, Goodyear, Hellmich, Post Luxembourg, RTL Group and Voyages Vandivinit). These installations will include projects installed on the roofs of buildings, on the ground and (new in Luxembourg) photovoltaic panels floating on the water of the industrial basin of ArcelorMittal in Differdange. These projects will further significantly increase the country's photovoltaic footprint. The development of renewables is also continuing in the Greater Region with wind developments in Saarland and the first photovoltaic installations commissioned in the Netherlands. Enovos has also developed new supply methods, such as the Power Purchase Agreement for its customers in Germany and the Grand Duchy, which enables even better integration of renewable energies into the energy markets and meets growing demand. renewable energy by combining planned (hydro) and volatile sources (such as wind and photovoltaic energy).

In the area of ​​technical services, the Encevo Group has strengthened and developed this fairly recently established pillar. Subsidiaries such as Paul Wagner & Fils have taken advantage of their integration into the group to develop new products and new skills in the field of energy transition. The year 2019 also saw the launch of new collaborative projects (such as the sunity platform) and the development of the "diego" offer together with the Federation of Craftsmen. Towards the end of the year, the acquisition of Power Panels SA, a company specialising in the design and assembly of low-voltage electrical systems as well as control and regulation panels, strengthened the field of technical services within the Encevo Group.

In order to be able to play its role as the driving force of the energy transition in Luxembourg and in the Greater Region, the group made a new record investment of a total of €210.9 million last year (compared to €209 million in 2018). Despite the high level of investment, the group maintains a very solid structure, which is illustrated by a gearing (ratio of financial debt to the company's equity) of 35.3% (39.9% in 2018).

However, developments in the context of the COVID-19 pandemic may affect the outlook for the year 2020. Indeed, the group expects the economy and therefore also the energy markets to be impacted negatively. Beyond the economic consequences, the group hopes that its future projects (investments and development of renewable energies, networks, etc.) will not be affected in the long-term.

The number of employees in the group amounted to 1,972 people in 2019 (average over the year; 1,948 people in 2018).

The full annual report is available on www.encevo.eu.