Swiss power producer Alpiq has reported adjusted EBITDA of CHF787 million (US$889.5 million) for its half-year results, with “very sound” operating liquidity of CHF1.7 billion ($1.9 billion).
Alpiq said, “The strategic focus on the core business in selected countries initiated at the end of 2021, enhanced risk management and the new steering mechanism are taking effect.”
“The results show that we have done our homework by sharpening our focus, taking fewer risks and significantly improving our collaboration. These efforts are now also reflected in the good figures across all areas of the business,” said Antje Kanngiesser, chief executive officer of Alpiq.
Alpiq’s portfolio includes conventional and pumped-storage projects spread across continental Europe, with the highest concentration of its fleet residing in Switzerland, where some 60% of all energy consumed is generated by hydropower facilities. Alpiq is a shareholder in the 900 MW Nant de Drance Pumped Storage Power Plant in Switzerland.
Although the adjusted net revenue fell by 29% compared to the same period of the previous year due to the lower price level on the energy markets, Alpiq was able to significantly grow its earnings thanks to a greatly improved operating performance and greater efficiency.
Assets including asset trading made a particularly high contribution to the result in the first six months of 2023, with adjusted EBITDA of CHF592 million ($668.6 million). The flexibility and consistently high availability of the power plants played a key role in this context, allowing Alpiq to generate energy when it was needed most. In addition to maintaining the hydropower reserve to strengthen the security of supply in Switzerland, Alpiq made a significant contribution to grid stability in various markets with its flexible power plants and ancillary services.
“Achieving a healthy result is centrally important in enabling the urgent investment in the security of supply and climate protection. We continue to make targeted investments in renewable production, flexibility and storage,” Kanngiesser said.
Although the situation on the energy markets has somewhat eased, there is still uncertainty about developments in the second half of 2023. Nevertheless, Alpiq is confident about the second half of the year thanks to its highly flexible production plant portfolio, its well-positioned trading operations and its proven origination business. As things stand at present, Alpiq expects net liquidity to increase again in the second half of the year.
In addition, Alpiq’s Board of Directors has appointed Amédée Murisier to succeed Michael Wider as head of the Switzerland Division. Murisier, currently head of hydro power generation, will take over the new role on March 1, 2024. Wider will retire
Alpiq has been generating climate-friendly and sustainable electricity from carbon-free Swiss hydropower for more than 100 years, the company said. The power plant portfolio also comprises shares in two Swiss nuclear power plants as well as flexible thermal power plants, wind farms and photovoltaic facilities in Europe.
