Lausanne – Alpiq further strengthened the focus on its core business in the first half of the year and expanded its business in the energy storage and flexibility segment. Alpiq’s financial position is very solid. The energy markets in the first half of 2024 were shaped by falling electricity prices and very low price volatility. Against this backdrop, Alpiq achieved a very good result with an adjusted EBITDA of CHF 463 million. Adjusted net revenue fell to CHF 2,883 million due to lower prices, while adjusted net income totalled CHF 287 million.
High availability and comparatively low demand characterised the electricity market in the first half of the year. Last winter was exceptionally mild and there was very high precipitation in the Alpine region. Together with the continued low demand for electricity, this led to decreasing market prices, which, despite the ongoing uncertainty, are now gradually approaching pre-crisis levels. In the energy sector, lower prices have a direct effect on net revenue, which fell to CHF 2,883 million (adjusted). Alpiq achieved a very good operating result of CHF 463 million (adjusted EBITDA). The adjusted net income of CHF 287 million (net income according to IFRS CHF 533 million) thus serves to significantly strengthen the company’s financial position. Liquidity rose by CHF 265 million to CHF 2,209 million, and net financial assets increased.
The extreme market conditions in 2022 led to an extraordinarily good result in 2023, which means a comparison with the previous year is only of limited significance. Compared with the years before 2022, the operating result in the first half of 2024 is very good.
Alpiq's power plants again enjoyed very high availability in the first half of 2024 and impressed in terms of their flexibility. About 80 per cent of the installed capacity in the Alpiq power plant portfolio can be used very flexibly. The level of power production was almost equivalent to the previous year at net 7,740 GWh. Thus, the power plants continued to contribute significantly to ensuring a stable security of supply in Switzerland and Europe in the first half of 2024.
The business operations performed well. Alpiq was able to strengthen its market presence in its geographical core markets and consolidate its position. All three value chain elements – Assets, Trading and Origination – contributed to this result. In the Assets area, this comprises the production and flexibility management of power plants; in Trading, energy and certificate trading; and in Origination, portfolio management and the wholesale business in ten European countries. Ultimately, the result achieved by the business operations provides the funds for further strategic development. Investments in the future were funded from the current cash flow.
Alpiq CFO Luca Baroni
“Alpiq is today in a very good financial position. The net cash position of CHF 693 million and the high equity ratio of 55 per cent will enable Alpiq to implement its strategic initiatives continuously in the coming years.”
The Board of Directors confirmed the strategy at the end of 2023 and Alpiq pursued its implementation consistently in the first half of 2024. The aim is to make Alpiq more resilient to rapidly changing market conditions and at the same time make a substantial contribution to security of supply and a better climate with a diversified portfolio of flexible plants. In April and June, Alpiq demonstrated its focus on flexible capacity and storage options by making two strategically important acquisitions in Finland and has continued to drive expansion.
Alpiq CEO Antje Kanngiesser
“Ensuring flexibility by providing and managing short and long-term storage facilities will be crucial in decarbonising energy consumption. That’s why we will continue to invest in the development of flexibility to accelerate the integration of renewable energies.”
The overwhelming support for the Electricity Act in June has paved the way for the 16 Hydropower Round Table projects, five of which Alpiq is participating in. Alpiq’s top priority is the construction of the Gornerli project, as this expansion project by Grande Dixence SA alone will enable about a third of the volume of the planned expansion projects near Zermatt to be realised. The multifunctionality increases the benefits for everyone and strengthens acceptance. In addition to being an important electricity storage facility for the winter months, the planned reservoir will provide flood protection for Zermatt and a water reservoir for irrigation and drinking water.
Alpine solar power facilities are also essential for the security of supply in winter, as they supply a significant proportion of their energy in the winter months. Alpiq is driving these projects forward in close cooperation with the municipalities and local partners to ensure their successful implementation.
Alpiq continues to press ahead intensively with the implementation of its strategy. Given the increasing normalisation of the market environment, Alpiq expects its business activities to perform well in the second half of 2024. The company’s financial situation, equity and net cash position will continue to strengthen over the next six months. Alpiq continues to anticipate a good result below the previous year's level, even taking into account negative one-off effects. Business performance in the Assets, Trading and Origination areas – supported by forward-looking investments – will contribute to security of supply and a better climate in Switzerland and Europe. Alpiq is aiming to be net zero by 2040.
You can find more information on Alpiq at www.alpiq.com
