Repower posted operating income (EBIT) of CHF 9 million in the first half of 2018. Despite a volatile environment, Repower scored outstanding successes in new services.
Foundation in place for continued success!
After a successful repositioning the company is holding its own in a very volatile and competitive marketplace, helped by slightly higher energy prices and a marginally more advantageous EUR/CHF exchange rate. Repower’s organisational realignment in Switzerland is creating the basis for further successful execution of the strategy. In the first six months we scored successes in our core business, in contracts for third parties, and in new services.
The scheduled overhaul of the Teverola power plant, postponed until the first quarter, took considerably longer than expected owing to technical problems, but the asset has been back on the grid since mid-June. The planned downtime coupled with the unscheduled delay in getting the plant up and running again had a substantial negative impact on results for the first half year.
Thanks to the innovativeness and dedication of staff, however, Repower achieved a positive result despite this. This enables us to look forward with optimism to a future where major challenges remain in the marketplace.
The annual general meeting held on 16 May 2018 elected Dr Monika Krüsi as the new chair of the board of directors. Dr Krüsi, a seasoned expert in digital transformation and strategic development, will work with the management and board of directors to steer Repower into the future.
Operating environment and results
The market environment remains very challenging and volatile. While energy prices continued to recover in the first half year and the EUR/CHF exchange rate situation eased somewhat, we are experiencing a high level of volatility in these key drivers of earnings. The energy industry still has to contend with political discussion and regulatory uncertainty. Repower is confident that both Energy Strategy 2050 and liberalisation of the electricity market are steps in the right direction.
CHF billionTotal operating revenue 1st half-year 2018
CHF millionOperating income (EBIT) 1st half-year 2018
We would like to express our warm thanks to all our staff for their hard work and commitment over the last half year. Thanks also go to our shareholders, customers and partners for the trust they place in us.
Outlook and objectives
Market conditions will remain challenging in the next few years, and there will be no tangible easing in the pressure on margins. Despite this, Repower can look to the future with confidence. The company has a very solid capital base and the realignment is already starting to bear fruit. We are convinced that Repower will be able to innovate within the organisation to make optimum use of the opportunities digitalisation is bringing, as well as continue to operate successfully in its core business. We’re also certain that we will be able to draw on know-how gathered and refined over the course of more than a century to deliver even more contracts for other energy utilities.