EP Power Europe reports 2023 results

13. 5. 2024

EP Power Europe (“EPPE”, together with its subsidiaries, the “Group”), a subsidiary of Energetický a průmyslový holding (“EPH”), reports consolidated financial results for the year 2023.

EPPE’s power plants generated 34.5 TWh of power (34.4 TWh in 2022), which represented a key block behind the Group consolidated revenue of €20,467 million (compared to €33,608 million in the record year 2022).  EBITDA[1] reached €2,368 million (€2,918 million in 2022). The above stated performance, which was achieved despite the general decrease in commodity prices, testifies EPPE’s financial and operational resilience. The Group is conscious of its pivotal role in supporting security of European power supply and continues to invest in state-of-the-art generation assets with the aim to support a balanced power supply and to achieve the previously set long-term ESG goals.

Other highlights include:

  • Record Cash flows generated from operating activities of €2,336 million (1,292 million in 2022)
  • Income tax paid of €646 million, reflecting superb 2022 results
  • Net installed capacity of 12.9 GW (10.9 GW in 2022)

During the year, the Group was active in both  M&A and internal development. In H1 2023, the Group expanded to the Netherlands by acquiring four power plants and a supply business. The acquisition of Rijnmond, Sloe, Enecogen and Maastroom flexible gas power plants (combined net installed capacity 2.6 GW) marks a significant strengthening of EPPE’s generation capacity and  fostering its vital role in supporting stability of Europe’s power grid. EP Produzione, a subsidiary of EPPE, has made major progress in development of cutting-edge power generation facilities in Tavazzano (CCGT, 800 MW, connected to grid in April 2024, with expected completion in H2 2024) and Ostiglia (CCGT, 880 MW, scheduled completion in 2025). Another power plant being constructed in Kilroot (OCGT, 700 MW, Northern Ireland, planned to be fully online in H1 2024 with one unit already operational) also progressed significantly during the year. The anticipated CAPEX for all three projects upon completion exceeds €1.1 billion, with €382 million spent in 2023.

Complementary to the above investments in new projects, the Group continued its transformation by closing two of its hard coal power plants. In September 2023, the coal operations were definitely closed at Kilroot plant in Northern Ireland, followed by the Mehrum hard coal power plant in Germany at the end of March 2024.

As part of the strategy of EPCG (EP Corporate Group a.s., the parent entity of EPPE’s sole shareholder EPH)  to concentrate all transformation assets at one place and to accelerate energy transition, the Group transferred its share in LEAG into the previously established EP Energy Transition (EPETR). The expected total investment in renewable and other energy related projects concentrated under EPETR structure is currently estimated to exceed €10 billion. Such investments include an estimated total installed capacity of 8 GW of renewable sources.

“At EPPE, our ultimate mission remains unchanged – to support a thoughtful and responsible energy transition in Europe while keeping in mind our social responsibility towards our employees and regions in which we operate,“ said Jan Špringl, CEO and vice-chairman of EPPE’s management board. As such, we will continue to provide flexible and highly efficient zero or low-carbon power generation capacities to secure the stability of the electricity grid at a time when power from renewable sources is not available, and we will continue to invest in such power capacities.“

The companies within the Group persist in managing their operations diligently to ensure flawless performance and maximum efficiency in generating electricity and heat, directly influencing emission levels. Consequently, the EPPE Group saves energy, minimizes network losses, and bolsters the security of Europe’s internal energy network, all while maintaining a steadfast commitment to environmental and social responsibility.

Looking ahead, the Group is resolute in its dedication to serving customers and upholding its reputation as a dependable energy provider. Recognizing its pivotal role in Europe’s sustainability and decarbonization efforts, the Group pledges to continue making prudent, long-term decisions. In doing so, EPPE aims to meet the expectations of its stakeholders by significantly advancing European environmental protection goals and simultaneously ensuring the stability of the European energy market.

For more information, please visit https://www.eppowereurope.cz/en/results-centre/

[1] EBITDA represents the profit (loss) for the period before income tax expenses, finance expense, finance income, change in impairment on financial instruments and other financial assets, share of profit (loss) of equity accounted investees, net of tax, gain (loss) on disposal of subsidiaries, joint ventures and associates, depreciation, amortization and impairment of tangible and intangible assets and negative goodwill