Economy & Politics

Encevo posts solid result for 2019

The parent company of energy supplier Enovos ended the year with net profit of 67.9 million euros, it said on Wednesday. This should not be the case in 2020 since the group expects to have a difficult exercise following the negative impact of the covid-19 pandemic on the economy.

The parent company of energy supplier Enovos ended the year with net profit of 67.9 million euros, it said on Wednesday. This should not be the case in 2020 since the group expects to have a difficult exercise following the negative impact of the covid-19 pandemic on the economy.

(ER) – 2019 has been a good year for Encevo. Whether at the level of its net profit – 67.9 million euros, or four million more compared to 2018 – or its Ebitda – 211.9 million, according to data published Wednesday. Slight increases that the energy group does not really explain, content to indicate in its press release that “the volumes in terms of energy sales, both for electricity and for natural gas are comparable to 2018”.

These last twelve months have been marked by an investment of 210.9 million euros (209 in 2018) for the company which employs 1,972 people in the Grand Duchy. Of which 147 million were by Creos Luxembourg for the maintenance and extension, in particular of the electrical networks and infrastructures. To this must be added the installation of smart meters (ca. 255,000 meters for electricity, ca. 39,500 for gas) as well as the charging stations of the Chargy network (337 charging stations installed) despite some delays during launch. In Germany, Creos continued to modernize its gas network and began research with a view to distributing green gas (biogas and hydrogen).


With net profit up by almost 15% and investments exceeding the 200 million euro mark, 2018 was marked by results qualified as “solid” by the management of the Luxembourg energy group.


If the quality of the network is an important element in the energy transition, the share of renewable energies is also essential. In 2019 and at the start of 2020, Enovos commissioned 13.9 MW of photovoltaic power plants and the group aims by mid-2010 to install a new series of photovoltaic installations with a power total of 19.5 MW in the territory of the Grand Duchy of Luxembourg, “equivalent to the production of energy corresponding to the energy consumption of approximately 4,650 households,” recalls Encevo.

In addition, following the second public tender for photovoltaic installations, Enovos will carry out nine projects in collaboration with ArcelorMittal, Arthur Welter, Goodyear, Hellmich, Post Luxembourg, RTL Group and Voyages Vandivinit. Among them, the installation of floating panels on the water of the ArcelorMittal industrial basin in Differdange. These projects will increase the country’s photovoltaic footprint.

The increase in renewable energies is also topical in the Greater Region with wind developments in Saarland and the first photovoltaic installations commissioned in the Netherlands.


With businesses and transportation stopping or idling, booming teleworking and households forced to stay at home, the country’s overall electricity consumption has dropped. Over a quarter even over the past six weeks.


If the 2019 balance sheet is presented as solid, the future looks more indecisive. “Developments in the context of the covid-19 pandemic risk altering the outlook for the year 2020”, specifies the group which expects that “the energy markets will be negatively impacted”.

Beyond the economic consequences, Encevo hopes that its future projects will not be too affected in the long term. In the meantime, the group’s finances should enable it to cope with the difficult period ahead.


Tags

Related Articles

Back to top button
Close
Close