Abstract
Introduction
The Performance pillar combines 5 financial metrics to measure business performance. The Scale pillar combines financial and operational metrics to measure the size of a utility. The Growth pillar measures the rate of growth of a utility' s financial and energy resources. The Exposure pillar combines both operational and financial measurements of risk.
Scope
- A thorough review of the key operational and financial metrics that drive utility performance.
- A comparison and ranking of key metrics across Europe' s leading utilities.
Report Highlights
The Finnish utility Fortum leads on the Performance pillar and Russia' s Gazprom on the Scale pillar whilst Denmark' s Dong leads in both the Growth and Exposure pillars
Reasons to Purchase
- See where a company ranks in European utility scorecard
- Gain a comprehensive assessment of a company' s market share across Europe
- Acquire a wealth of company data from retail volumes to structural hedge positions
Table of Contents
- CATALYST
- SUMMARY
- METHODOLOGY
- ANALYSIS
- European Utilities Key Player Profile: Essent
- Key Player Scorecard examines 31 leading utilities drawn from across
Europe' s competitive arenas
- Key Players dominate power generation capacity market share in the Wmed competitive arena
- Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
- Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
- Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
- The Key Player Scorecard assesses utilities across four pillars:
Performance, Scale, Growth and Exposure
- The Performance pillar combines 5 financial metrics to measure business performance
- The Scale pillar combines financial and operational metrics to measure the size of a utility
- The Growth pillar measures the rate of growth of a utility' s financial and energy resources
- The Exposure pillar combines both operational and financial measurements of risk
- Essent scores 28.8/100 on Datamonitor' s European Utility Scorecard and
ranks 24 out of the 31 Key Players covered
- Essent ranks at or below the Key Player average on each Scorecard pillar
- Essent achieves an overall ranking of 24, with a utility score of 28.8
- Essent scores significantly below the Key Player average on the Scale pillar
- Essent performs slightly behind the Key Player average, with a slightly higher level of risk
- Essent trails the Key Player average and most top ten utilities in both Scale and Growth
- Essent scores well on operating profit margin, lifting its overall
Performance ranking to 16
- Essent' s lowest Performance metric is return on energy volume, where it ranks 18
- Essent is less profitable than the average Key Player, and most top ten utilities
- Essent outperforms the Key Player average and several top ten utilities on return on investment
- Essent scores below average on most Scale metrics, for a ranking of 23
on this pillar
- Essent scores below average on each Scale metric, though it ranks 12 in gas supply volume
- In generation capacity, Essent ranks 18 with 5 GW
- Although an integrated utility, Essent' s gas supply volume is 2.3 times its power supply volume
- Essent has a negligible share of Key Player power customers
- At 36 TWh, Essent ranks 19 in terms of power volume
- Essent' s 84 TWh gas supply volume translates into a 0.8% EU25 market share
- Essent has a 2.3% share of Key Player gas customers
- Essent ranks 20 in revenue and 21 in net income, respectively
- Poor revenue growth pulls Essent' s Growth ranking down to 21
- Essent scores below average in power supply volume growth, yet it ranks 6 out of 31 Key Players on this metric
- Essent is not a listed company, and so has no price earnigs ratio
- Essent saw average annual profit growth of 6.6% slightly eclipse revenue growth of 1.2% between 2001 and 2005
- Essent' s robust operating cash flow growth of 8.9% trailed power supply volume growth of 20.3%
- Essent' s Exposure rank of 19 is below average due to a low power NTR
volume score
- Essent' s below average Exposure ranking illustrates its high overall operational risk exposure
- Essent has a short position in both its power and gas NTR by 86.7% and 100% respectively
- Due to its power volume obligations exceeding its generational output, Essent has a short power NTR position of 31,334 GW
- Essent' s is lightly leveraged as debt represents 52.5% of the company' s equity
- Essent ranks 11 of the 31 Key Players in terms of debt leverage
- Essent' s growth in operational cash flow of 8.9% outpaced the decline in energy volume of -4.9%
- Essent principally operates in the Netherlands
- Essent has a negligible share of Key Player power customers
- Essent' s 84 TWh gas supply volume translates into a 0.8% EU25 market share
- APPENDIX
- Databook
- Definitions
- List of Tables
- Table 1: The Key Players are drawn from across a diverse range of markets
- Table 2: The Performance pillar combines 5 financial metrics to measure business performance
- Table 3: The Scale pillar combines financial and operational metrics to measure the size of a utility
- Table 4: The Growth pillar measures the rate of growth of a utility' s financial and energy resources
- Table 5: The Exposure pillar combines both operational and financial measurements of risk
- Table 6: Essent scores 28.8/100 on Datamonitor' s European Utility Scorecard and ranks 24 out of the 31 Key Players covered
- Table 7: Essent scores 10.8/25 on the Performance pillar, and ranks 16 out of 31 on this measurement
- Table 8: Essent scores 1.5/25 on the Scale pillar, and ranks 23 out of 31 on this measurement
- Table 9: Essent scores 8/25 on the Growth pillar, and ranks 21 out of 31 on this measurement
- Table 10: Essent scores 8.4/25 on the Exposure pillar, and ranks 19 out of 31 on this measurement
- Table 11: Essent scores well on operating profit margin, lifting its overall Performance ranking to 16
- Table 12: Essent scores below average on most Scale metrics, for a ranking of 23 on this pillar
- Table 13: Poor revenue growth pulls Essent' s Growth ranking down to 21
- Table 14: Essent' s Exposure rank of 19 is below average due to a low power NTR volume score
- Table 15: Return on fixed assets
- Table 16: Return on sales
- Table 17: Operating profit margin
- Table 18: Return on energy volume
- Table 19: Return on investment
- Table 20: Generation Capacity / EU25 market total
- Table 21: Power Supply Volume / EU25 market total
- Table 22: Gas Supply Volume / EU25 market total
- Table 23: Net income / Net income of 94 leading utilities
- Table 24: Revenue / Revenue of 94 leading utilities
- Table 25: Revenue growth, 2001-2005 CAGR
- Table 26: Profit growth, 2001-2005 CAGR
- Table 27: Growth in operating cash flow, 2004 to 2005
- Table 28: Gas supply volume growth, 2004-2005
- Table 29: Growth in power supply volume, 2004 to 2005
- Table 30: Power NTR / Power supply volume
- Table 31: Gas NTR / Gas supply volume
- Table 32: Debt leverage
- Table 33: Growth in operational cash flow - Growth in energy volume
- List of Figures
- Figure 1: Datamonitor' s Key Player Scorecard examines 31 leading utilities drawn from across Europe' s competitive arenas
- Figure 2: Key Players dominate power generation capacity market share in the Wmed competitive arena
- Figure 3: Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
- Figure 4: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
- Figure 5: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
- Figure 6: Essent achieves an overall ranking of 24, with a utility score of 28.8
- Figure 7: Essent scores significantly below the Key Player average on the Scale pillar
- Figure 8: Essent performs slightly behind the Key Player average, with a slightly higher level of risk
- Figure 9: Essent trails the Key Player average and most top ten utilities in both Scale and Growth
- Figure 10: Essent' s lowest Performance metric is return on energy volume, where it ranks 18
- Figure 11: Essent is less profitable than the average Key Player, and most top ten utilities
- Figure 12: Essent outperforms the Key Player average and several top ten utilities on return on investment
- Figure 13: Essent scores below average on each Scale metric, though it ranks 12 in gas supply volume
- Figure 14: In generation capacity, Essent ranks 18 with 5 GW
- Figure 15: Although an integrated utility, Essent' s gas supply volume is 2.3 times its power supply volume
- Figure 16: Essent has a negligible share of Key Player power customers
- Figure 17: At 36 TWh, Essent ranks 19 in terms of power volume
- Figure 18: Essent' s 84 TWh gas supply volume translates into a 0.8% EU25 market share
- Figure 19: Essent has a 2.3% share of Key Player gas customers
- Figure 20: Essent ranks 20 in revenue and 21 in net income, respectively
- Figure 21: Essent scores below average in power supply volume growth, yet it ranks 6 out of 31 Key Players on this metric
- Figure 22: Essent is not a listed company, and so has no price earnigs ratio
- Figure 23: Essent saw average annual profit growth of 6.6% slightly eclipse revenue growth of 1.2% between 2001 and 2005
- Figure 24: Essent' s robust operating cash flow growth of 8.9% trailed power supply volume growth of 20.3%
- Figure 25: Essent' s below average Exposure ranking illustrates its high overall operational risk exposure
- Figure 26: Essent has a short position in both its power and gas NTR by 86.7% and 100% respectively
- Figure 27: Due to its power volume obligations exceeding its generational output, Essent has a short power NTR position of 31,334 GW
- Figure 28: Essent' s is lightly leveraged as debt represents 52.5% of the company' s equity
- Figure 29: Essent ranks 11 of the 31 Key Players in terms of debt leverage
- Figure 30: Essent' s growth in operational cash flow of 8.9% outpaced the decline in energy volume of -4.9%
- Figure 31: Essent has a negligible share of Key Player power customers
- Figure 32: Essent' s 84 TWh gas supply volume translates into a 0.8% EU25 market share
