Romande Energie Holding (REHN) H2 2023 earnings summary

Executive summary

• 2023 delivered extraordinarily high profits and strong operating performance across all three business units, supported by energy-margin catch-up and strong associate earnings.

• Diversification, generation infrastructure and electrification trends underpinned resilience; long-term goals were reiterated.

Financial highlights

• Revenue CHF 928m; EBIT CHF 100m; net profit CHF 215m in 2023.

• Associate profit contribution reached CHF 141m, compared with CHF 4m in 2022, mainly reflecting ALPIQ and EOSH results.

• Energy-market impacts added CHF 58m to EBIT, including energy supply margin catch-up and higher generation output.

Outlook and guidance

• 2024 results are expected to fall sharply, with tariff stability and a reduction in authorised returns weighing on performance.

• Continued solar and district-heating rollout; grids outlook includes a 2024 WACC increase to 4.13%, network strengthening and smart-meter deployment.

• Positive value-creation momentum expected from 2025+, including forecast investment returns and major investments beyond 2027.