Comments on the financial results
Repower recorded a very good result in 2024 with EBIT of CHF 175 million, a group profit of CHF 138 million and an increase in the equity ratio.
Introduction to the comments on the financial results
Repower put in a strong operational performance and a saw its finances develop robustly in the 2024 financial year. With EBIT of CHF 175 million (prior year CHF 371 million) and a group profit of CHF 138 million (CHF 300 million), this was one of the best results in the company’s history. Despite a decline versus what was an extraordinary prior year, the results reflect Repower’s sustainable, resilient positioning in a market characterised by volatile electricity prices. The equity ratio improved 10 percentage points to 53 per cent (43 per cent), further reinforcing the company’s financial stability.
Once again the international trading business emerged as the main driver of results. Renewable power generation also put in an above-average performance thanks to favourable hydrological conditions and targeted investments. Repower has set a course for long-term growth by systematically continuing to invest in generation capacity and energy procurement rights.
The following sections analyse the key factors influencing the 2024 financial year and provide an initial assessment of future developments.
Market environment and economic framework
Wholesale electricity prices continued to decline in 2024. The average baseload electricity price on the EPEX Spot exchange for the German market was around EUR 80 per MWh (versus EUR 95 the prior year), owing among other things to the accelerated expansion of renewables and increased volumes of nuclear and hydroelectric power generated in France. For the first time, the amount of wind power exceeded the amount of power generated from gas in the EU, making wind the second-biggest source of energy after nuclear. At the same time, electricity prices became even more volatile, with developments on the market substantially influenced by the fluctuating feed-in of renewables.
Development in sales and operating results
The Repower Group’s net sales from goods and services declined to CHF 2,452 million in 2024 (from CHF 3,340 million the prior year), influenced among other things by developments in electricity prices. Energy gross margin shrank to CHF 422 million (CHF 631 million), creating the basis for a decline in EBIT from CHF 371 million to CHF 175 million.
Market Switzerland
In the Market Switzerland segment, the energy gross margin declined from a record high of CHF 516 million the prior year to CHF 291 million in 2024, a reduction of CHF 225 million. Repower was able to sell most of the electricity generated (a higher volume than the prior year) at prices that had already been hedged in previous years.
While the hydrological conditions in Switzerland were excellent and enabled the generation of above-average volumes of energy, concession-related charges, including the monetarily compensated free energy supplied to the municipalities, declined by CHF 9 million, mainly owing to lower market-price-dependent remuneration.
Impairments of around CHF 2 million were recorded in 2024, CHF 11 million less than the year before. Impairments in 2023 totalled CHF 13 million, of which the Taschinas power plant alone accounted for CHF 12 million.
In 2024, provisions of CHF 8 million were recognised for onerous contracts. CHF 4 million of this was for the costs of making the Silvaplana power plant operational, which Repower is contractually obliged to meet. These costs are not covered by future cash flows and have therefore been recognised as a provision. In the electric mobility business, Repower is now focusing on DC charging solutions for heavy vehicles such as e-buses and e-lorries. At the same time, provisions of CHF 2 million were recognised for existing onerous contracts outside this business that Repower must continue to honour.
In the Moesa region, Repower is seeking a long-term partnership with the municipalities, with electricity deliveries planned from 2027. To reduce the costs of electricity at an early stage, from 2025 Repower will grant a discount of 5 cents / kWh to support the purchase of power. The support provided for this purpose, which will depend on actual electricity consumption in 2025 and 2026, is currently estimated at around CHF 2 million. Accordingly, a provision was recognised under operating expenses.
EBIT came to CHF 160 million in 2024, CHF 213 million under the prior year level (CHF 373 million). Despite this decline, the result remains at a very high level, largely thanks to the international trading business, which has once again proven to be the most important driver of earnings.
Market Italy
In the Market Italy segment, energy gross margin increased by CHF 14 million to CHF 132 million (CHF 118 million) in 2024, mainly thanks to stronger sales numbers in Italy.
This improved sales performance led to a CHF 3 million increase in the compensation paid to sales agents. There was also an increase in personnel costs to CHF 2 million owing to the first-time consolidation of Erreci S.r.l. and Erreci S.r.l. as subsidiaries. Losses on receivables fell by CHF 4 million versus the prior year to CHF 4 million.
The amount of wind power generated internally fell slightly, prompting a decline in the EBIT of the Renewable business unit of around CHF 2 million to CHF 11 million. At the same time, the Erreci companies’ business, which has been included since 1 January, already contributed a positive EBIT of CHF 2 million.
EBIT in the Market Italy segment increased from CHF 18 million to CHF 28 million.
Other segments and activities
EBIT in other segments and activities came to CHF –13 million (prior year CHF –20 million). The fact that the result was less negative is mainly due to the fact that prior-year personnel expenses were higher because of increased accruals for employee profit sharing, as well as an impairment loss on the investment in EVUlution AG.
Net financial income
Net financial income improved from CHF –20 million the prior year to CHF –9 million in 2024. The main influencing factors were more favourable currency translation on Repower AG’s EUR positions and forward exchange transactions that were conducted, which led to an improvement of CHF 5 million. A CHF 3 million increase in interest income also contributed to the positive development.
The long-term development of the euro against the Swiss franc has been characterised by heavy fluctuations. In 2023, the closing rate fell from 0.98470 (end–2022) to 0.92600 as of 31 December 2023, a devaluation of –5.96%. In 2024, the euro recovered and reached 0.94120 at the end of the year, an appreciation of 1.64% versus the previous year. This exchange rate development had a positive impact on the financial result.
Consistent implementation of the investment strategy, optimised liquidity management and successful negotiations with financial institutions resulted in extraordinary interest income of almost CHF 10 million. In addition, higher-yielding tranches from the end of 2023 and fixed-term deposits with a term of less than one year deployed on a targeted basis to finance the bond repayment in December 2024 contributed to an increase in interest income of CHF 3 million versus the prior year.
Added to this was the fact that the prior year’s net financial income was negatively impacted by an impairment loss of CHF 2 million on the loan to EVUlution AG .
Earnings before tax and group profit
With earnings before tax of CHF 166 million (CHF 350 million), recognised income taxes declined from CHF 51 million to CHF 28 million.
Repower closed the 2024 financial year with a group profit of CHF 138 million (CHF 300 million).
Asset situation
Total assets fell in the 2024 financial year from CHF 2,642 million to CHF 2,235 million (–15 per cent).
Non-current assets
Non-current assets increased by CHF 58 million from CHF 995 million to CHF 1,053 million, notably with CHF 41 million of tangible and intangible assets from business acquisitions in 2024.
In the Market Switzerland segment, Repower expanded its scope of consolidation with the establishment of several new companies. Repower Moesano SA was founded as a subsidiary and from 2027 will supply power to the municipalities of Buseno and Cama and the electricity company Media Mesolcina Energia. Added to this, the associate Madrisa Solar AG was established in collaboration with EKZ and the municipality of Klosters to operate an alpine solar power installation generating GWh 17 a year.
In addition to the new companies, Repower made strategic acquisitions. For example, Repower took over the entirety of former joint venture Kraftwerk Morteratsch AG by acquiring all its shares from Reichmuth Infrastructure.
The winding-up of Alvezza SA was also completed successfully.
Repower strengthened its market position in the Market Italy segment through strategic acquisitions. Repower Renewable acquired Tre Rinnovabili S.r.l., a wind farm project in Sicily with a capacity of 29.9 MW. Repower also acquired further shares in Erreci S.r.l. and Erreci Impianti S.r.l. to achieve a majority interest of 70%. Erreci Impianti S.r.l. was subsequently merged with Erreci S.r.l.
Repower also strengthened its position in renewable energy generation by acquiring the remaining 35 per cent of the shares in Repower Renewable S.p.A., which is now wholly owned by the Repower Group.
An increase in capital also resulted in the complete takeover of Roma Gas & Power S.r.l. by Repower.
Repower also established Resol Brullo S.r.l. to build a solar power installation in Sicily with a planned capacity of 10 MW.
Finally, various mergers and integrations took place. Roma Gas & Power S.r.l. and REV S.r.l. were integrated into Repower Vendita Italia S.p.A.
Current assets
Current assets declined 28 per cent from CHF 1,647 million to CHF 1,182 million. The main reason was a decline in the positive replacement values of held-for-trading positions, down CHF 291 million from CHF 544 million to CHF 253 million. CHF 180 million in short-term fixed-term deposits also matured in 2024 and were not renewed; instead, the proceeds were invested or used to repay the exchange-listed bond.
Equity
Very good group earnings of CHF 138 million, dividend payments of CHF 60 million (including distributions to minority shareholders) and a CHF 45 million reduction in minority interests through the acquisition of the entire remaining shares in Repower Renewable resulted in equity of CHF 1,181 million at year end (previous year CHF 1,141 million). The equity ratio is 53 per cent (prior year 43 per cent).
Liabilities
Liabilities declined CHF 446 million from CHF 1,501 million to CHF 1,055 million. Particular contributory factors were a CHF 259 million decline in the negative values of held-for-trading positions and the repayment of the CHF 150 million Repower bond listed on the Swiss stock exchange amounting.
Liquidity situation
At CHF 363 million, cash holdings, or the net cash and cash equivalents fund in the consolidated cash flow statement, were running at the same level as last year (CHF 361 million).
Cash flow from operating activities declined significantly, down CHF 177 million to CHF 204 million (CHF 381 million). An important factor in the decline was a decline in group earnings to CHF 162 million.
After high net outflows of CHF 234 million in 2023, Repower saw positive cash flow from investing activities of CHF 40 million in 2024. The main reason for this was the maturing of CHF 180 million in fixed-term deposits. These funds were used, among other things, for investments in tangible assets after the deduction of contributions received in the amount of CHF 71 million and for the acquisition of minority interests of CHF 61 million in Renewable. Repower also acquired interests in Erreci S.r.l. and Erreci Impianti S.r.l., previously recognised according to the share of equity, and KW Morteratsch SA for a total of CHF 10 million. Added to this was a total of CHF 6 million for the establishment of the associate Madrisa Solar AG and a payment to cover the purchase price of the joint venture Elettrostudio S.r.l., acquired already the previous year. Non-cash interest income increased from CHF 5 million the prior year to CHF 11 million in 2024.
At CHF 244 million (prior year CHF 147 million), free cash flow (the difference between cash flow from operating activities and cash flow from investing activities), was again positive. In 2024, Repower thus generated more cash and cash equivalents than were needed for operating and investing activities, providing a solid basis for debt repayment and the dividend distribution.
Negative cash flow from financing activities increased from CHF –63 million the prior year to CHF –247 million in 2024. The main reason for this was the repayment on 9 December 2024 of the Repower bond in the amount of CHF 150 million. The outstanding result of the prior year also prompted the decision to pay a special dividend in addition to the regular divided, taking the distribution to the shareholders of Repower AG to CHF 59 million in total.
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.
Net debt of CHF –103 million the prior year declined to CHF –80 million in 2024. This is mainly due to the fact that while the divested fixed-term deposits amounted to CHF 180 million, the decline in financial liabilities, including interest accruals, came to only CHF 160 million.
Proposed dividend
Given Repower AG and the Repower Group’s very good annual results, strong capital structure and high levels of liquidity, the board of directors moves that the annual general meeting of 14 May 2025 approve, in addition to an ordinary dividend of CHF 5 per registered share, a special dividend of CHF 1.50 per registered share, giving a total distribution of CHF 6.50 per registered share.
Outlook
The current geopolitical tensions and macroeconomic uncertainties are having a significant impact on the energy markets. The increasing share of renewable energy generated at wind and solar facilities is leading to growing oversupply, challenging grid stability and resulting in additional costs for grid operators. Negative electricity prices underscore the need to adapt both the design of the market and internal processes to integrate renewables as well as possible.
Repower is systematically expanding and modernising its portfolio of renewables. Investments in hydroelectric, solar and wind power combined with targeted expansion of the grid infrastructure will strengthen the long-term security of supply. The introduction of smart meters and smart grid technologies will facilitate the more efficient use of renewables and improve grid stability.
In the course of raising its interest in Energiefinanzierungs AG (ENAG) on 7 January 2025, Repower has also acquired the right to procure 40 MW, running for 15 years. This augments the company’s long-term procurement strategy.
Despite the uncertainties that exist, we look to the future with confidence. The global energy transition is opening up new opportunities for innovation and growth. By continuously adapting our business models and focusing on sustainable technologies, we are putting Repower in a good position to meet the demands of a changing energy market.
Our strategic investments make a significant contribution to a secure and sustainable energy supply while adding value for our stakeholders. The company continues to expect a good result for 2025.