Energetický a průmyslový holding, a.s. (“EPH”) is pleased to announce record 2021 results, despite challenging market conditions
14. 4. 2022
Consolidated EPH (together with its subsidiaries, the “Group”) sales reached EUR 18.9 billion last year (compared to EUR 8.5 billion in 2020), EBITDA increased by 5% to EUR 2.3 billion (compared to EUR 2.1 billion in 2020) and Free Cash Flow totalled EUR 1.4 billion (compared to EUR 1.3 billion in 2020). Record performance together with a cautious approach to indebtedness resulted in Net Leverage around 2x (flat year-on-year), a very conservative level compared to industry peers.
EPH’s last year’s record results were mainly driven by EP Power Europe (EPPE), which showed an 85% increase in EBITDA to EUR 1.0 billion (compared to EUR 0.5 billion in 2020), compensating for the slight decrease in EBITDA of EP Infrastructure (EPIF) by 21% to EUR 1.3 billion (compared to EUR 1.6 billion in 2020).
“First, we must state that we are very proud to be able to overcome all challenges and properly respond to very dynamic developments of the energy markets. Not only have we delivered on our responsibilities in the area of security of supply but we have also flexibly adjusted our operations to the new situation. This thanks to major efforts of all our colleagues and very prudent and conservative management of the Group.
As for the financials, the past year has once again proved that our business model of combining power generation (EPPE) and gas transmission, distribution and storage and power and heat distribution (EPIF) is very resilient. Lower gas flows to the EU, which negatively impacted EPIF’s performance, have resulted in the increased gas price on the European market which was the main driver of the growth of EPPE’s performance. The trend of strong growth of EPPE continues in 2022.” said Daniel Křetínský, CEO and controlling shareholder of EPH.
Investments in sustainable power generation lead to a significant reduction in CO2 intensity
Following massive investments in new technologies and decommissioning or transformation of traditional coal power plants, the emission intensity factor (measured as tons of CO2 emitted per GWh of energy produced) decreased by astonishing 40% over the past seven years. Throughout the last year, the Group continued to invest considerable amounts in zero- or low-emission projects such as the construction of modern gas-fuelled powerplants in Italy and Northern Ireland, the increase in the share of biomass in the fuel mix by Plzeňská teplárenská, a.s. and continued progress in implementing more than 3 GW of renewable projects made by EP New Energies in Germany. These steps are fully in line with our main objective to become carbon neutral by 2050.
„In 2021, already 78% of net power produced in our consolidated operations was from zero- or low- carbon sources. We aim to invest ca. €1.4 billion in new low-carbon sources. When finished, the new plants will have a total installed capacity of 2,600 MW. At the same time, we are fully aware of the new challenges in the domain of security of supply and our decarbonisation efforts and ambitions will be managed in a way that doesn’t jeopardize this first priority of energy operators.” added Daniel Křetínský.
EPH remains a stable and resilient partner even in challenging times
The transformation of the Group’s activities is not happening at the cost of security of energy supply and affordability for customers. The turbulent developments in the energy market in the last quarter of 2021 have shown that the Group’s operations are part of the key energy infrastructure in Europe and their reliability is critical for the functioning of the entire electricity supply system of western and central Europe. It is our main mission to remain a stable partner for households, businesses, municipalities and governments even in the most difficult environment.
The events happening just at our border in the first months of 2022 have already dwarfed all the challenges of the past year. We stand behind the people of Ukraine. The Group will deploy its financial resources and offer a helping hand to those who flee the warzone through the EP Corporate Group Foundation in the Czech Republic and the EPH Foundation in the Slovak Republic. Time will show what other support will be required and we stand ready to help those who need it most.
For more information, please visit https://www.epholding.cz/en/annual-reports/