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: Electrabel
- 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
- Electrabel scores 39.4/100 on Datamonitor' s European Utility Scorecard
and ranks 6 out of the 31 Key Players covered
- In each of the four Scorecard pillars, Electrabel ranks above the Key Player average
- Electrabel achieves an overall ranking of 6, with a utility score of 39.4
- Electrabel scores significantly above the Key Player average on the Performance pillar
- Electrabel' s Performance ranks amongst the best of all Key Players, with a slightly lower than average level of risk
- In terms of Scale, Electrabel is slightly behind the Key Player average, while in Growth it is the median top ten utility
- Electrabel has the highest return on fixed assets of all Key Players,
with an overall Performance rank of 3
- Electrabel' s overall financial Performance score of 15.2 exceeds the Key Player average of 10.9
- Electrabel has an average operating profit margin, but top return on fixed assets
- Electrabel lags most of its top ten utility peers on return on energy volume and return on investment
- Electrabel ranks in the top half of utilities on each Scale metric, for
an overall ranking of 10 on this pillar
- In terms of Scale, Electrabel ranks 10
- In generation capacity, Electrabel ranks 7 with 29 GW
- Electrabel is more focused on power (132 TWh supply volume) than gas (73 TWh supply volume)
- Electrabel has approximately three percent of Key Player power customers
- At 132 TWh, Electrabel ranks 6 in terms of power volume
- Electrabel has a 2.5% percent share of Key Player gas customers
- In gas volume Electrabel has a 0.7% market share of the EU25
- Electrabel ranks 13 and 10 in terms of revenue and net income, respectively
- Despite very low revenue growth, Electrabel has an overall rank of 6 in
the Growth pillar
- Electrabel' s Growth ranking of 6 is constrained by its low revenue growth
- Electrabel' s price earnings ratio and operating profit margin trail the Key Player average (15 and 21%, respectively)
- Despite revenues declining on average by 0.6% each year between 2001 and 2005, Electrabel' s profits surged 18% annually
- Electrabel saw strong cash flow (57.9%) and power volume growth (7.4%), while gas supply volume growth lagged at 5%
- Electrabel' s high debt leverage and short gas NTR position leads to an
Exposure ranking of 9
- Electrabel beats the Key Player average in power NTR, but is tied for last place with its gas NTR
- Electrabel has a short position in both power and gas NTR of -0.7% and -100% of its supply obligations, respectively
- Electrabel is short on power as its generation capacity does not meet the company' s supply commitments
- Electrabel has a higher than average debt to equity ratio of 129.2%
- Electrabel ranks 22 of the 31 Key Players in terms of debt leverage
- Electrabel' s operating cash flow has grown eight times faster than the company' s energy volume
- The bulk of Electrabel' s operations are centred in Belgium
- Gas is Electrabel' s main power generation fuel
- Belgium is Electrabel' s main power market, yet the company has a presence across Europe
- Electrabel owns generation capacity in three competitive arenas
- Electrabel has approximately three percent of Key Player power customers
- Electrabel has a 2.5% percent share of Key Player gas customers
- APPENDIX
- Databook
- Definitions
- 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: Electrabel scores 39.4/100 on Datamonitor' s European Utility Scorecard and ranks 6 out of the 31 Key Players covered
- Table 7: Electrabel scores 15.2/25 on the Performance pillar, and ranks 3 out of 31 on this measurement
- Table 8: Electrabel scores 4.1/25 on the Scale pillar, and ranks 10 out of 31 on this measurement
- Table 9: Electrabel scores 9.8/25 on the Growth pillar, and ranks 6 out of 31 on this measurement
- Table 10: Electrabel scores 10.3/25 on the Exposure pillar, and ranks 9 out of 31 on this measurement
- Table 11: Electrabel has the highest return on fixed assets of all Key Players, with an overall Performance rank of 3
- Table 12: Electrabel ranks in the top half of utilities on each Scale metric, for an overall ranking of 10 on this pillar
- Table 13: Despite very low revenue growth, Electrabel has an overall rank of 6 in the Growth pillar
- Table 14: Electrabel' s high debt leverage and short gas NTR position leads to an Exposure ranking of 9
- 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: Electrabel achieves an overall ranking of 6, with a utility score of 39.4
- Figure 7: Electrabel scores significantly above the Key Player average on the Performance pillar
- Figure 8: Electrabel' s Performance ranks amongst the best of all Key Players, with a slightly lower than average level of risk
- Figure 9: In terms of Scale, Electrabel is slightly behind the Key Player average, while in Growth it is the median top ten utility
- Figure 10: Electrabel' s overall financial Performance score of 15.2 exceeds the Key Player average of 10.9
- Figure 11: Electrabel has an average operating profit margin, but top return on fixed assets
- Figure 12: Electrabel lags most of its top ten utility peers on return on energy volume and return on investment
- Figure 13: In terms of Scale, Electrabel ranks 10
- Figure 14: In generation capacity, Electrabel ranks 7 with 29 GW
- Figure 15: Electrabel is more focused on power (132 TWh supply volume) than gas (73 TWh supply volume)
- Figure 16: Electrabel has approximately three percent of Key Player power customers
- Figure 17: At 132 TWh, Electrabel ranks 6 in terms of power volume
- Figure 18: Electrabel has a 2.5% percent share of Key Player gas customers
- Figure 19: In gas volume Electrabel has a 0.7% market share of the EU25
- Figure 20: Electrabel ranks 13 and 10 in terms of revenue and net income, respectively
- Figure 21: Electrabel' s Growth ranking of 6 is constrained by its low revenue growth
- Figure 22: Electrabel' s price earnings ratio and operating profit margin trail the Key Player average (15 and 21%, respectively)
- Figure 23: Despite revenues declining on average by 0.6% each year between 2001 and 2005, Electrabel' s profits surged 18% annually
- Figure 24: Electrabel saw strong cash flow (57.9%) and power volume growth (7.4%), while gas supply volume growth lagged at 5%
- Figure 25: Electrabel beats the Key Player average in power NTR, but is tied for last place with its gas NTR
- Figure 26: Electrabel has a short position in both power and gas NTR of -0.7% and -100% of its supply obligations, respectively
- Figure 27: Electrabel is short on power as its generation capacity does not meet the company' s supply commitments
- Figure 28: Electrabel has a higher than average debt to equity ratio of 129.2%
- Figure 29: Electrabel ranks 22 of the 31 Key Players in terms of debt leverage
- Figure 30: Electrabel' s operating cash flow has grown eight times faster than the company' s energy volume
- Figure 31: Gas is Electrabel' s main power generation fuel
- Figure 32: Belgium is Electrabel' s main power market, yet the company has a presence across Europe
- Figure 33: Electrabel owns generation capacity in three competitive arenas
- Figure 34: Electrabel has approximately three percent of Key Player power customers
- Figure 35: Electrabel has a 2.5% percent share of Key Player gas customers
