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 Datamonitor' s 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
- DATAMONITOR VIEW
- CATALYST
- SUMMARY
- METHODOLOGY
- ANALYSIS
- European Utilities Key Player Profile: ENI
- Datamonitor' s 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
- ENI scores 50.1/100 on Datamonitor' s European Utility Scorecard and
ranks 2 out of the 31 Key Players covered
- ENI scores well above average in the four pillars
- ENI achieves an overall ranking of 2, with a utility score of 50.1
- Only on the Exposure pillar does ENI score below the Key player average
- ENI is among the best financial performers, with only a slightly higher than average level of risk
- Compared to its top ten utility peers, ENI has average Growth yet scores highly on Scale
- ENI scores highly on return on investment and return on fixed assets,
lifting its Performance ranking to 7
- ENI' s overall financial Performance score of 14.5 outperforms the Key Player average of 10.9
- ENI offers a better return on fixed assets than most of its top ten utility peers
- ENI significantly exceeds the Key Player average on return on investment
- ENI has the highest Key Player revenue, contributing to a Scale ranking
of 3
- ENI outperforms the Key Player average on the Scale pillar, with a ranking of 3
- In generation capacity ENI ranks 20, with 5 GW
- Though integrated, ENI is decidedly more focused on gas than power (921 TWh and 37 TWh in supply volume, respectively)
- ENI has a negligible share of Key Player power customers
- At 37 TWh, ENI ranks 18 in terms of power volume
- ENI has a 6% share of Key Player gas customers
- ENI has a 8.4% share of EU25 gas supply volume
- ENI ranks 1 in revenue and 2 in net income
- ENI' s rank of 2 in power supply growth contributes to its overall Growth
pillar rank of 7
- ENI has a near-top ranking on power supply volume growth
- ENI' s price earnings ratio of 11 is below the Key Player average, despite high operating profit margins
- ENI saw annual profit growth of 2.5% lag revenue growth of 8.4% between 2001 and 2005
- From 2004-2005, ENI' s gas supply volume growth of 7.1% lagged operating cash flow growth of 19.5%
- ENI' s Exposure ranking of 4 reflects operational rather than financial
risk
- ENI' s Exposure metrics fluctuate well above and below Key Player averages
- ENI has a short position in both its power and gas NTR of 37.7% and 57.8%, respectively
- ENI has a negative (short) power NTR of 36,620 GW
- ENI' s is lightly leveraged, with a debt to equity ratio of only 19.5%
- ENI ranks 5 of the 31 Key Players in terms of debt leverage
- ENI' s energy volume growth of 9.6% was outpaced by a 19.5% growth in cash flow
- ENI has gas sales in many European countries, yet they are concentrated
in the company' s Italian home market
- Italy is ENI' s primary gas supply market
- ENI has a negligible share of Key Player power customers, all of whom are located in Italy
- ENI has a 6% share of Key Player gas customers
- APPENDIX
- Databook
- Definitions
- Definitions
- Datamonitor Consulting
- 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: ENI scores 50.1/100 on Datamonitor' s European Utility Scorecard and ranks 2 out of the 31 Key Players covered
- Table 7: ENI scores 14.5/25 on the Performance pillar, and ranks 7 out of 31 on this measurement
- Table 8: ENI scores 13.6/25 on the Scale pillar, and ranks 3 out of 31 on this measurement
- Table 9: ENI scores 9.8/25 on the Growth pillar, and ranks 7 out of 31 on this measurement
- Table 10: ENI scores 12.2/25 on the Exposure pillar, and ranks 4 out of 31 on this measurement
- Table 11: ENI scores highly on return on investment and return on fixed assets, lifting its Performance ranking to 7
- Table 12: ENI has the highest Key Player revenue, contributing to a Scale ranking of 3
- Table 13: ENI' s rank of 2 in power supply growth contributes to its overall Growth pillar rank of 7
- Table 14: ENI' s Exposure ranking of 4 reflects operational rather than financial risk
- 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: ENI achieves an overall ranking of 2, with a utility score of 50.1
- Figure 7: Only on the Exposure pillar does ENI score below the Key player average
- Figure 8: ENI is among the best financial performers, with only a slightly higher than average level of risk
- Figure 9: Compared to its top ten utility peers, ENI has average Growth yet scores highly on Scale
- Figure 10: ENI' s overall financial Performance score of 14.5 outperforms the Key Player average of 10.9
- Figure 11: ENI offers a better return on fixed assets than most of its top ten utility peers
- Figure 12: ENI significantly exceeds the Key Player average on return on investment
- Figure 13: ENI outperforms the Key Player average on the Scale pillar, with a ranking of 3
- Figure 14: In generation capacity ENI ranks 20, with 5 GW
- Figure 15: Though integrated, ENI is decidedly more focused on gas than power (921 TWh and 37 TWh in supply volume, respectively)
- Figure 16: ENI has a negligible share of Key Player power customers
- Figure 17: At 37 TWh, ENI ranks 18 in terms of power volume
- Figure 18: ENI has a 6% share of Key Player gas customers
- Figure 19: ENI has a 8.4% share of EU25 gas supply volume
- Figure 20: ENI ranks 1 in revenue and 2 in net income
- Figure 21: ENI has a near-top ranking on power supply volume growth
- Figure 22: ENI' s price earnings ratio of 11 is below the Key Player average, despite high operating profit margins
- Figure 23: ENI saw annual profit growth of 2.5% lag revenue growth of 8.4% between 2001 and 2005
- Figure 24: From 2004-2005, ENI' s gas supply volume growth of 7.1% lagged operating cash flow growth of 19.5%
- Figure 25: ENI' s Exposure metrics fluctuate well above and below Key Player averages
- Figure 26: ENI has a short position in both its power and gas NTR of 37.7% and 57.8%, respectively
- Figure 27: ENI has a negative (short) power NTR of 36,620 GW
- Figure 28: ENI' s is lightly leveraged, with a debt to equity ratio of only 19.5%
- Figure 29: ENI ranks 5 of the 31 Key Players in terms of debt leverage
- Figure 30: ENI' s energy volume growth of 9.6% was outpaced by a 19.5% growth in cash flow
- Figure 31: Italy is ENI' s primary gas supply market
- Figure 32: ENI has a negligible share of Key Player power customers, all of whom are located in Italy
- Figure 33: ENI has a 6% share of Key Player gas customers
