Comments on the financial results

Successful hedging strategy: impressive gross energy margin leads to historically high EBIT of CHF 371 million.

In 2023 there was a significant decline in prices on the energy markets. This was exemplified by the average baseload electricity price on the EPEX Spot exchange for the German market. In 2021 this price was still EUR 97 per MWh; the following year the same amount of energy cost an average of EUR 235. In 2023 the price then fell by more than half again to an average of EUR 95 per MWh. This development was in stark contrast to the previous year, which saw prices rise significantly owing to the dramatic increase in gas prices. At that time, gas was in short supply in response to Russia’s attack on Ukraine. This led to expectations of an energy shortage in Europe. Fortunately, this shortage did not materialise.

The main factors behind the current price decline are lower gas prices, due in particular to mild temperatures in the winter of 2022/23. In addition, lower CO2 prices, an increase in the amount of electricity generated from renewable resources and generally lower demand for electricity are also having a calming effect on the market situation.

Repower’s earnings before interest and taxes (EBIT) come to CHF 371 million (prior year: CHF 82 million), which can be described as unique in history. Group profit was a high CHF 300 million (prior year: CHF 53 million). Earnings per share came to CHF 39.65 (prior year: CHF 6.57). Total assets fell significantly from CHF 3,035 million to CHF 2,642 million.

The equity ratio increased from 29 per cent at the end of 2022 to 43 per cent at the end of 2023.

Development in sales, and strong operating results

At CHF 3,340 million, Repower Group net sales from goods and services in 2023 were down 29 per cent on the prior year level of CHF 4,718 million. The decline in net sales is due in particular to the fact that electricity and gas prices were lower than the prior year and to the appreciation of the Swiss franc against the euro.

The gross energy margin, which Repower defines as the difference between net revenue from energy business and energy procurement, grew 121 per cent or CHF 346 million from CHF 285 million to CHF 631 million. The development of the two operating segments Market Switzerland and Market Italy diverged significantly.

In the Market Switzerland segment, the gross energy margin increased by CHF 347 million from CHF 169 million, which includes a positive one-time effect of CHF 18 million from an adjustment to the provision for onerous contracts, to CHF 516 million.

The most significant contribution to the overall result came from the international energy trading business in the Market Switzerland segment, which made a decisive contribution to the Repower Group’s record result. Even though electricity prices on the international markets fell sharply in the year under review, Repower was able to protect itself from the price slump by hedging production at higher prices at an early stage.

Forecast lower price expectations and changes in assumptions on the utilisation of hydropower plants led to the recognition of impairment losses of CHF 16 million, which had a negative impact on EBIT.

The Market Switzerland segment posted EBIT of CHF 373 million (prior year CHF 71 million). Adjusted for the one-time effect of CHF 18 million recognised the prior year, EBIT increased a full sixfold by CHF 336 million from CHF 53 million to CHF 389 million.

Sales of electricity from the Market Switzerland segment to the Market Italy segment saw a year-on-year decline of CHF 158 million from CHF 419 million to CHF 261 million.

In the Market Italy segment the gross energy margin increased by CHF 10 million, up from CHF 108 million to CHF 118 million, primarily thanks to wholesale business.

By contrast, the cost of materials and third party services increased by CHF 5 million, in particular owing to higher, partly inflation-related maintenance costs for Teverola gas-fired combined-cycle power plant and expenses for the agent network in the sales business.

The impairments on receivables from end customers in the sales business recognised as other operating expenses decreased by CHF 9 million versus the prior year. Depreciation and value adjustments of tangible assets, on the other hand, were up CHF 8 million year on year. In the second half of 2023 there was a fire at a solar power installation under construction in the municipality of Melfi in the Basilicata region, which destroyed several solar modules. The night before, the solar modules of an installation in the municipality of Varmo in the Friuli Venezia Giulia region were damaged by hail. On the basis of these incidents an impairment of CHF 3 million was recognised, while the prior year had seen the reversal of an impairment loss of CHF 4 million on a piece of land.

EBIT in the Market Italy segment increased by CHF 6 million from CHF 12 million to CHF 18 million.

EBIT in the Other segments and activities segment came to CHF –20 million (prior year: CHF –1 million).

The Other segments and activities segment includes a negative CHF 2 million effect from the consolidation of income and expense (prior year: a positive effect of CHF 8 million). This is a currency-related netting difference from the offsetting of goods and services from the elimination of expenses and income between the Market Switzerland and Market Italy segments.

Without the currency-related difference from the elimination of expenses and income, the Other segments and activities segment posted EBIT of CHF –18 million (prior year CHF –9 million). The increase in costs in this segment is mainly due to the impairment of the investment in EVUlution AG, higher capital taxes, expenses for digitalisation, a higher headcount and higher accruals for employee profit-sharing and the associated increase in personnel expenses.

In 2023 the general level of interest rates continued to rise, while the euro continued to lose value against the Swiss franc. These interest rate increases, in conjunction with higher fixed-term deposits, led to increased interest income. At the same time the increase in interest rates led to higher interest expenses. Once again Repower managed to counter developments in the euro exchange rate with the help of hedging transactions, and to largely offset the resulting currency losses. The financial results were negatively impacted by the impairment of the loan to EVUlution AG of CHF 2 million.

With earnings before tax of CHF 350 million (prior year: CHF 65 million), recognised income taxes increased from CHF 12 million to CHF 51 million.

Repower closes the 2023 financial year with a group profit of CHF 300 million (prior year: CHF 53 million).

Asset situation

Compared with the prior year, total assets fell 13 per cent or CHF 393 million from CHF 3,035 million to CHF 2,642 million, owing in particular to a decline in current assets and current liabilities.

Repower’s non-current assets increased CHF 6 million from CHF 989 million to CHF 995 million. A decline in tangible and intangible assets by CHF 9 million was overcompensated by the establishment of a joint venture and the acquisition of another. The purpose of Resol Ciminna S.r.l., a joint venture with a carrying amount of CHF 13 million, is to construct and operate a 63 MW solar power installation in Sicily. A 20 per cent interest, with a carrying amount of CHF 2 million, in the jointly managed company Elettrostudio Energia S.r.l. was acquired with the aim of implementing Repower’s strategic plan to build out its renewable energy portfolio in Italy, with the experience and network of Energia S.r.l. making a particular contribution.

Current assets declined 19 per cent or CHF 398 million from CHF 2,045 million to CHF 1,647 million. The main factors driving total assets were positive replacement values of held-for-trading positions amounting to CHF 544 million (prior year: CHF 990 million) and negative replacement values of held-for-trading positions amounting to CHF 395 million (prior year: CHF 939 million). The carrying amounts of the energy derivatives included in these items declined both in gross terms and after the offsetting of energy derivatives that were concluded with the same counterparty and with which enforceable netting agreements exist. In net terms, the replacement values of held for trading positions increased by CHF 98 million year on year from CHF 51 million to CHF 149 million.

The record high group profit of CHF 300 million, which significantly exceeds the distributed dividend of CHF 38 million and the recognised currency losses of CHF 9 million, led to an increase in equity from CHF 888 million to CHF 1,141 million and an equity ratio of 43 per cent (prior year 29 per cent). The equity ratio (group profit divided by equity) is 26 per cent (prior year: 6 per cent).

Liabilities came to CHF 1,501 million at 31 December 2023, down 30 per cent or CHF 646 million from CHF 2,147 million the prior year. Here too, the main reason was the substantial reduction in the replacement values of held for trading positions. In the Market Italy segment the negative replacement values of held for trading positions declined by CHF 544 million, down from CHF 939 million to CHF 395 million.

Liquidity situation

There was a sharp increase in cash flow from operating activities, up to CHF 381 million from CHF –134 million the prior year. This is due to a very good group profit of CHF 300 million (prior year: CHF 53 million) and a small increase in net working capital of CHF –55 million (prior year: CHF –232 million). In 2023, Repower received back deposits of CHF 42 million it had paid for direct trading (prior year: outgoing payments of CHF 96 million for direct trading).

Cash flow from investing activities was came to CHF –234 million (prior year: CHF 48 million), an increase of CHF –282 million. In 2023, there was a net investment flow into interest-bearing fixed-term deposits of CHF –152 million (prior year: CHF 112 million). Outgoing payments for investments in tangible assets in 2023 are CHF 16 million higher than in the prior year and relate in particular to expenditure on power plants and grid equipment.

Free cash flow, the difference between cash flow from operating activities and cash flow from investing activities, is a positive CHF 147 million (prior year: CHF –86 million). In 2023, Repower generated more cash than it required for operating and investing activities.

Cash flow from financing activities came to CHF –63 million (prior year: CHF 11 million). In 2023, financial liabilities, including the servicing of interest, of CHF –25 million overall were repaid (prior year: CHF 45 million). Dividend payments in 2023 were up CHF 3 million year on year from CHF 35 million to CHF 38 million.

Cash and cash equivalents saw a year-on-year increase of CHF 78 million from CHF 283 million to CHF 361 million.

The figure for net debt or net liquidity is calculated on the basis of cash and cash equivalents, current financial assets, fixed-term deposits recognised as non-current financial assets, and current and non-current financial liabilities, including accrued interest. Net liquidity is indicated by a minus sign. The net debt of CHF 152 million the prior year was reduced to net liquidity of CHF –103 million in 2023, thanks in particular to the high group profit of CHF 300 million.

Dividend to shareholders

Given Repower AG and the Repower Group’s very good annual results, strong capital structure and high levels of available liquidity, the board of directors moves that the annual general meeting of 15 May 2024 approve, in addition to an ordinary dividend of CHF 5.00 per registered share, a special dividend of CHF 3.00 per registered share, giving a total of CHF 8.00 per registered share.


The past 2023 financial year was a major challenge not only for Repower, but for the economy as a whole. The ongoing geopolitical uncertainties due to the war in Ukraine, high inflation and rising interest rates had a significant negative impact on the economy. By virtue of its hedging strategy, Repower sells the electricity from its own power plants largely in advance and was thus able to achieve an excellent result.

A volatile market environment with ongoing challenges is expected to continue in 2024. Europe remains heavily dependent on fossil fuels, which makes the region generally susceptible to price fluctuations and supply bottlenecks. Production in 2024 and in some cases beyond is secured, while the energy transition offers growth opportunities for renewable energy and energy efficiency. Here Repower is well positioned.

Nevertheless, external risk factors remain. A further escalation of the war in Ukraine and the Middle East, rising inflation rates and interest rates and exchange rate effects in general, as well as a lack of rainfall in the regions, could have a negative impact on the development of Repower’s business. As a company, Repower will closely monitor market developments and flexibly adapt its business strategy as necessary to respond proactively to changing conditions.

Repower is confident that it will successfully overcome the challenges of the coming financial year. The sales hedged at higher prices will have a positive impact on its result in 2024.