“In the years to come, high electricity prices will have a positive impact on BKW”

BKW remains on a growth trajectory. The Group presented good half-year results at mid-year 2022, with revenue up 37% and EBIT 46% higher than in the same period last year, increasing to CHF 330 million. In this interview, CFO Ronald Trächsel explains the backdrop of these developments and outlines where and how BKW is feeling the effects of the current global crisis, despite reporting good figures.

Ronald Trächsel, BKW generated significantly higher revenue and EBIT despite the strain of the current geopolitical situation and economic turbulence. Why?

Ronald Trächsel: BKW is on solid footing, having achieved good 2022 half-year results in terms of both revenue and EBIT. A promising future lies ahead for the company. We have once again proven the strong potential of BKW’s business model. Our combination of growth and forward-looking risk management continues to pay off.

Is BKW being left unscathed by the war in Ukraine and the upheaval on the energy markets?

BKW is not immune to global crises, of course. This is something we are getting a sense of in the Services business, for example: Revenue increased significantly by 20% to CHF 835 million, with the three key areas of BKW Engineering, BKW Building Solutions, and BKW Infra Services all making a contribution to these results. However, global supply chain difficulties and the coronavirus pandemic have negatively affected margins as well as process efficiency. It has also been impossible to pass on higher procurement prices across the board. As a result, EBIT in the Services segment was slightly lower than in the same period of the previous year.

Prices on the energy markets have risen sharply. How is this affecting BKW today?

High prices in the Energy business are helping us, but the positive effects will only impact EBIT in the years to come. This is because we hedge our electricity prices on the market several years in advance and then sell to our customers. In the first half of 2022, the Energy business and the active management of our energy positions in particular contributed to the BKW Group’s good half-year results.

«The Energy and Services segments are major growth markets in which BKW sees great potential for success.»
Ronald Trächsel, CFO BKW

Over the past year, policymakers and the media have often discussed the tight liquidity situation of companies trading on power exchanges. What does BKW’s liquidity situation look like?

It is indeed the case that our liquidity requirements for trading have also increased sharply in the last six months. In parallel with rising prices, the collateral we are required to deposit on the power exchange has also risen sharply. Thanks to our forward-looking liquidity planning and active management of our trading positions, we kept our liquidity situation under control at all times.

In the years to come, BKW will be investing more than two billion Swiss francs in its Energy, Services, and Grid business areas. What is BKW aiming to achieve with these investments?

The Energy and Services segments are major growth markets in which BKW sees great potential for success. We are also making a significant contribution to decarbonization by investing in the expansion of renewable energy and services that optimize the energy efficiency of buildings and infrastructure.

What is your forecast for the second half of 2022?

BKW confirms its EBIT guidance of CHF 460 to 500 million for the 2022 annual result. Political and economic trends continue to be impacted by great uncertainty.

Half-Year Report 2022

BKW remains on its growth trajectory despite a volatile market situation. The Energy business in particular contributed to this positive trend. However, revenue in the Services business was also positive.  



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