BKW expects outstanding result for 2022*

Results forecast increased thanks to risk-appropriate management of energy positions

BKW can look back on a successful 2022. The sharp rise in electricity prices, along with often extreme upheavals on the energy markets, had a positive effect on BKW’s result for 2022. With the goal of hedging its own energy positions in mind, BKW made optimal use of major price fluctuations in its management. High electricity prices also saw a rise in costs for ancillary services, which help maintain grid stability. BKW now expects an EBIT for the year of approximately CHF 1 billion (previous year: CHF 395 million). Thanks to this outstanding result, BKW can significantly increase its investments in the expansion of renewable energies in Switzerland.

Bern, 4 January 2023

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*Ad hoc announcement pursuant to Art. 53 LR

Massive upheavals on the energy markets presented major challenges for BKW in the 2022 financial year, but also offered opportunities in the management of energy positions for its own power plants. Together with higher prices for ancillary services, this led to an outstanding trading result for BKW in the fourth quarter. As such, BKW currently assumes the EBIT for the 2022 financial year will come in at approximately CHF 1 billion (previous year: CHF 395 million).

This outstanding performance in the management of energy positions aside, BKW has so far withheld the turmoil of the markets. It is continually monitoring the risks associated with the energy crisis. Its three-pillar strategy provides it with a broad base, while its risk framework and strong balance sheet result mean that it was, and is, well positioned to deal with these risks. BKW’s solid liquidity management meant that it was always able to deposit the margin calls required by the exchange, and at no point did it face a situation that would have compelled it to apply for state support. In view of the ongoing volatility of energy markets, BKW had begun significantly winding down its trading risks early in 2022.

Strong position accelerates investment in renewables

The upheavals on the energy markets had no impact on the 300,000 or so households that receive basic supply from BKW, as they draw electricity from BKW’s own plants at prices based on production costs. Large customers who already procured their electricity for 2023 before the crisis are also not affected. On the other hand, large customers without hedging are confronted with higher procurement costs. This is driven by international market developments and is not caused by BKW’s trading activities. BKW has developed innovative, flexible solutions for this customer segment to smooth out higher prices in the coming months and years.

With this outstanding result for 2022, BKW will further strengthen its robust position. Along with the Trift and Grimelsee hydropower projects, this will allow it to make additional investments in renewable energies to further secure reliability of supply in Switzerland.

BKW will publish the definitive annual result for 2022 on 14 March 2023.