BKW (BKW) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was CHF 2.33 billion, down 2.8% year-over-year, mainly due to lower electricity prices in the energy business.

• EBIT rose 3.2% to CHF 438.3 million, driven by strong energy management, trading, and increased hydropower production.

• Net profit reached CHF 362.5 million, including a CHF 75 million gain from the Mühleberg nuclear decommissioning fund (STENFO); operating net profit was CHF 302.6 million.

• Resilience attributed to complementary business areas: Energy, Grid, and Services, with continued progress on energy transition and sustainability initiatives.

• New guidance for full-year EBIT is CHF 700–800 million.

Financial highlights

• Operating cash flow was CHF 170.9 million, lower due to increased net working capital from major projects and higher inventories.

• Free cash flow was CHF 22 million, not sufficient to cover CHF 188 million in dividends paid.

• Cash and cash equivalents decreased to CHF 587 million; equity ratio improved to 48%.

• ROCE stood at 7.8% or 15.4% depending on calculation method, both well above the cost of capital.

• Net debt increased to CHF 1.129 billion due to lower cash and stable liabilities.

Outlook and guidance

• Positive outlook for energy production and trading, with continued strong grid contributions and improved service profitability.

• EBIT guidance for 2024 raised to CHF 700–800 million.

• Strategy update to be presented at Capital Markets Day in November.