EPH reports 2023 results, continues its way towards sustainable future

25. 4. 2024

Energetický a průmyslový holding, a.s. (“EPH” or the “Group”) reports results for 2023. In an environment marked by general decrease in European power prices, EPH reached strong EBITDA of EUR 3.6 billion (compared to EUR 4.3 billion reached in the record year 2022, a decrease of 17%). EBITDA margin increased to 15% (12% in 2022). The Group maintains a low Net leverage multiple of 1.3x (compared to 1.1x in 2022), allowing operational flexibility and demonstrating its financial soundness. During the year, the Group continued its strategy towards achieving its ambitious environmental and sustainability goals. 

Other financial highlights include: 

  • Consolidated sales of EUR 24.2 billion (compared to EUR 37.1 billion in the record year 2022) 
  • Record corporate income tax paid of EUR 1.0 billion (compared to EUR 0.4 billion in 2022), out of which EUR 376 million paid in the Czech Republic (exceeding 2023 EBITDA of EUR 268 million generated in the Czech Republic, representing 7.5% of Group’s EBITDA) 
  • The Group will pay approximately EUR 2.2 billion in corporate income tax and consumption-related emission allowances to European public budgets for 2023 
  • CAPEX of EUR 0.4 billion dedicated to development projects securing future operational cashflow 
  • Free cash flow of EUR 1.7 billion (compared to 3.6 billion in 2022). The year-on-year decrease was largely driven by record development CAPEX and Income tax paid following a financially successful year 2022 

Operational highlights include: 

  • Net installed capacity 13.9 GW (compared to 11.8 GW in 2022) 
  • Net power generation 36.1 TWh (compared to 37.0 TWh in 2022) 
  • Operated flexible gas storage capacity of 64.3 TWh located in Slovakia, Germany, the Czech Republic and the UK  
  • 16.1 bcm of natural gas transported and 4.3 bcm of natural gas distributed to customers 
  • 2.1 TWh of thermal energy produced and delivered to customers 

In January 2024, EPH received a special award for the biggest taxpayer in the “Czech Elite” ranking compiled by Seznam Zprávy and Deloitte. Czech EPH subsidiaries paid a record CZK 6.7 billion in corporate tax for 2022. 

In March 2024, the Group ceased operations of three coal units as part of its commitment to a sustainable future without coal. Two units at Vojany1 and one unit at Mehrum represented decommissioning of a total of 910 MW net installed coal capacity. This step followed the recent closures of other coal assets: Kilroot plant (Northern Ireland, net installed capacity 514 MW) terminated production from coal in September 2023 and Novaky1 plant (Slovakia, 266 MW) shut down in December 2023.  

Further, EPH has started the first steps in its strategy to concentrate all transformation assets under one umbrella represented by EP Energy Transition Group (EPETr). As such, EPH transferred its whole share in LEAG Group to EPETr during 2023, with Mibrag Energy Group to follow at the latest by the end of 2025. EPETr aims to focus on a socially responsible green transformation following German legal specifics. 

Decommissioning of the above-mentioned coal power plants underscores the Group’s commitment to transformation towards sustainable electricity production. By 2025, the Group expects to become almost coal-free, and by the end of 2030 at the latest to be completely coal-free while striving to achieve this goal before that year. 

During the year, EPH continued to invest into state-of-the-art power generation facilities, all hydrogen ready. These investments include a CCGT power plant in Tavazzano, Italy (net installed capacity 800 MW) and a OCGT power plant Kilroot, Northern Ireland (700 MW), both to be completed in 2024. Another CCGT power plant project in Ostiglia, Italy, with a capacity of 880 MW, is to follow with commissioning in 2025. 

While active in new gas related development, the EPH Group also focuses on hydrogen and power storage solutions. “I believe that hydrogen, together with energy storage solutions, will be pivotal in shaping Europe’s energy landscape in the near future,” Daniel Křetínský, CEO and majority owner of EPH, commented. “While the European legislative and regulatory framework still needs to be reshaped to find economically, socially and environmentally viable trajectory to a zero-carbon economy, our wide array of gas infrastructure assets, hydrogen-ready power generation and focus on electricity storage solutions position us naturally as one of the leaders on Europe’s journey towards a new energy market model,” 

The Group’s environmental and sustainability achievements are reflected in its ESG Risk Rating of 22.4 from Morningstar Sustainalytics, a leading provider of environmental, social and governance research, ratings and data assessing companies’ resilience to environmental, social and governance risks, placing EPH 25th out of 104 companies in the multi-utilities sector.  

“Throughout its corporate history, we remained steadfast in our commitment to excellence, reliability, and socially responsible transition to zero-carbon energy generation,” said Mr. Křetínský. “In the past year, we navigated dynamic market conditions, advanced our strategic initiatives, and continued to deliver value to our stakeholders while embracing the evolving demands of the energy industry. The Group substantially contributed to the security of supply across Europe with further increase in the following year as a result of the planned completion of our two new power plants in Italy and Ireland. In line with our long-term strategy, we will continue to enhance our generation fleet with the aim to increase security of supply in regions with market imbalances.” 

For more information please see: https://www.epholding.cz/en/results-centre/ 

 

1 Owned by Slovenske elektrarne a.s. where EPH owns 33% and consolidates its share as associate via equity method