[Report] European Electrabel Utilities Key Players & Strategies Market Research, Trends, Analysis

CHAPTER 1 INTRODUCTION
- Utility competition is starting to transcend national borders, but a single EU market place remains distant
- Larger utilities need to find a suitable geographical arena in which to pursue their ambitions
- The emergence of pan-European suppliers is an ideal for now, the reality is the emergence of geographic competitive arenas
CHAPTER 2 DATAMONITORS EUROPEAN UTILITY SCORECARD
- E.ON leads the Datamonitor European Utility Ranking, Electrabel ranks fourth out of the 12 companies benchmarked
- Electrabels supply assets and financial health drives up its score on Datamonitors European Utility Scorecard, to 46* out of 100
- Electrabel is embedded in the NWE and WMed European competitive arenas and has moved into the CEE markets
- Electrabel is active in 3 of the 5 competitive arenas for power assets and only in one market for gas
- Electrabel is the eighth largest supplier of end user volumes for power and gas across 32 European markets, with 2.1%* market share
CHAPTER 3 POWER SUPPLY VOLUMES AND MARKET SHARES
- Electrabel has expanded into three competitive arenas and leveraged its upstream position by maintaining an MEU focus
- Electrabel commands the fifth highest market share, 3.4%* across the EU 32 markets
- Electrabels geographic spread of power volumes encompasses the NWE, CEE and WMed competitive arenas
- Electrabel has no power volumes sales across the Nordic region, a region dominated by Vattenfall, E.ON and Nordic regional suppliers
- Electrabels power volume across the NWE region totals 103TWh, third behind E.ON and RWE with 260TWh and 204TWh respectively
- Electrabels power volume across CEE totals 8TWh, some way behind CEZ, E.ON and RWE, its interests are only in Poland
- Electrabel has a small but growing power volumes sales presence across the WMed region, a region dominated by incumbents
- Three quarters of Electrabels RES weighting is accounted for by the Belgian market, while for I&C it accounts for less than half
- The Netherlands is forecast to follow a more competitive path according to Datamonitors MCI Index, where Electrabel is well placed
- Electrabels power supply revenues total €11,336m, with a relatively even weighting across MEU, SME and RES supply
- Electrabel derives the same proportion of revenue from each national market as the proportion of power supplied to each national market
CHAPTER 4 GAS SUPPLY VOLUMES AND MARKET SHARES
- Electrabels gas sales volumes are well spread between wholesale and end user sales across the Benelux markets in the NWE arena
- Electrabel has a 0.9%* market share across the EU 32 markets for end user gas supply volumes
- Electrabels gas volume geographic spread is located in just one of the competitive arenas, that of the NWE
- Electrabel has no gas volumes sales across the Nordic region, a market that is still immature, with only E.ON and oil majors active
- Electrabel gas volumes across the NWE region totals 115TWh, with wholesale volumes making up 2 of every 5 volumes sold
- Electrabel has no gas volumes sales across the CEE region, E.ON is present, but this region is dominated by Russias Gazprom
- Electrabel has no gas volumes sales across the WMed region, an arena dominated by national players, primarily GDF, Eni and Gas Natural
- Electrabel is active in 3 gas supply markets, where over 95% of its gas volumes in both RES and I&C are attributed to its home market
- The Benelux markets will exhibit faster market competitivity, as assessed by Datamonitor, markets of primary interest for Electrabel
- Electrabels gas supply revenues total €1,603m, sourcing all its revenues from NWE markets with an even split across sectors
CHAPTER 5 GENERATION CAPACITY AND MARKET SHARE
- Electrabel has expanded into 3 competitive arenas, balancing its fuel mix, and making it the seventh largest generator across Europe
- Electrabel ranks as the seventh largest European generator across Europe, with 30GW of capacity
- Electrabel has its power plants located across 3 of the competitive arenas, WMed, CEE and the NWE
- Electrabel has no power plant assets across the Nordic region, a region dominated by Vattenfall, E.ON, Fortum and Statkraft
- Electrabels plant capacity across the NWE region totals 21GW, third behind the German major power players, E.ON and RWE
- Electrabels supply assets in the CEE markets total 2.7GW, a sixth the size of CEZ, half the size of EDF but ahead of E.ON and RWE
- Electrabel has a presence in the WMed arena, a region dominated by incumbents, from EDF in France, Enel in Italy and Endesa in Spain
- Electrabel has a 3.1% and 2.1% market share of total and renewables generation capacity across the EU 32 markets respectively
- Electrabels fuel mix is diversely spread, with a weighting towards thermal, its other renewables share is low against the EU 32 average
- Benelux and France account for 84% of Electrabels capacity, with high market penetration in Belgium, the Netherlands and Hungary
- Electrabels generation output totals 140TWh, thermal and nuclear fuels forming the majority of output, across its main arena, NWE
CHAPTER 6 STRUCTURAL HEDGE - POWER
- Datamonitor uses generation and supply market shares to determine if companies are generally long or short in power
- Electrabel is long in its NTR*, by 78.0TWh, the trend with most other European players, generally being long by over 30TWh on average
- Reviewing the NTR as a percentage, Electrabels additional 78.0TWh makes the company long by 126%
- Electrabel NTR* is long across NWE and in particular the Benelux markets, it is 4.7TWh long in Hungary, though short in Italy
- Currently energy companies with higher market share are structurally long and profitable
CHAPTER 7 STRUCTURAL HEDGE - GAS
- European utilities gas equity and gas supply market shares determine if these companies are generally long or short in gas
- Electrabel is short in its NTR* gas position, at 53.0TWh, where the trend for the leading energy companies remains being significantly short
- A handful of energy companies outside the oil and gas majors have equity gas, Electrabel has none, unlike Centrica, GDF, RWE and E.ON
CHAPTER 8 BASE FINANCIALS OVERVIEW
- Earnings remain an issue, though average gearing and a reasonable cash flow can facilitate access for additional funds to acquire
- Electrabels revenues in 2004 exceeded €12bn, where the range between E.ON and CEZ spanned €46bn to €3bn
- Over the last five years Electrabels revenues have grown at a CAGR of 10%, however earnings have fallen to 1.3% CAGR
- Electrabels PE ratio is at the top end for the sector, currently driven up by Suezs bid for the companys remaining 49.9% stake
- Electrabels gearing is 1.2x earnings, average amongst its peers, and allowing it the ability to leverage additional funds if required
- Electrabels free cash flow amounts to €1.8bn, in line with other power producers Enel, Vattenfall and ScottishPower
CHAPTER 9 APPENDIX
- Understanding Datamonitors European Utility Scorecard rating, focusing on competitive sectors of generation, equity gas and retail volumes
- Scoring methodology
- Scorecard rating component breakdowns and scoring metrics and measures
- Data methodology
- The MCI Index shows how attractive a particular market is to new entrants in terms of the competitive environment
- The MCI Index is calculated by deriving a weighted average of scores over 9 key metrics
- Glossary of terms
- Future readings
- SPP writing team
- How to contact experts in your industry
- List of Tables
  - Table 1: Datamonitors European Utility Scores and ranking for the 12 benchmarked companies
  - Table 2: Electrabel Competitive Arenas matrix, 2005
  - Table 3: Scoring rating matrix for Datamonitors European Utility Scorecard
- List of Figures
  - Figure 1: 32 European markets divided into 5 regional competitive arenas
  - Figure 2: Electrabels Datamonitor European Utility Scorecard, 2005
  - Figure 3: Companies matrix by value chain focus and competitive arena, 2005
  - Figure 4: Top twelve power and gas supply volume market shares across 32 European markets, 2005
  - Figure 5: Proportion of revenues vs. end user power volume sales in markets where Electrabel has a >5% volume market share, 2005
  - Figure 6: Weighting between I&C and residential power volumes for the key players across EU 32 markets, 2005
  - Figure 7: Power volumes supplied across the EU 32 markets by sector and competitive arena, 2005
  - Figure 8: Power volumes supplied in the Nordic competitive arena by company, 2005
  - Figure 9: Power volumes supplied in the NWE competitive arena by company, 2005
  - Figure 10: Power volumes supplied in the CEE competitive arena by company, 2005
  - Figure 11: Power volumes supplied in the WMed competitive arena by company, 2005
  - Figure 12: Electrabels power supply volumes (GWh) RES country breakdown, 2005
  - Figure 13: Electrabels power supply volumes (GWh) I&C country breakdown, 2005
  - Figure 14: Scores and geographical distribution of 13 power markets assessed by Datamonitors MCI Index rating, 2005
  - Figure 15: Map representing Electrabels size and the geographical distribution of its power market share across EU 32 markets, 2005
  - Figure 16: Electrabels power supply volumes revenue breakdown, by sector, 2005
  - Figure 17: Electrabels power supply volumes revenue breakdown, by competitive arena, 2005
  - Figure 18: Proportion of revenues vs. end user power volume sales in markets where Electrabel has a >5% volume market share, 2005
  - Figure 19: Leading players gas supply volumes (GWh) market share across EU 32 markets, 2005
  - Figure 20: Weighting between I&C and residential gas volumes for the key players across EU 32 markets, 2005
  - Figure 21: Gas volumes supplied across the EU 32 markets by sector and competitive arena, 2005
  - Figure 22: Gas volumes supplied in the Nordic competitive arena by company, 2005
  - Figure 23: Gas volumes supplied in the NWE competitive arena by company, 2005
  - Figure 24: Gas volumes supplied in the CEE competitive arena by company, 2005
  - Figure 25: Gas volumes supplied in the WMed competitive arena by company, 2005
  - Figure 26: Electrabels gas supply volumes (GWh) RES country breakdown, 2005
  - Figure 27: Electrabels gas supply volumes (GWh) I&C country breakdown, 2005
  - Figure 28: Scores and geographical distribution of 13 gas markets assessed by Datamonitors MCI Index rating, 2005
  - Figure 29: Map representing Electrabels size and the geographical distribution of its gas market share across EU 32 markets, 2005
  - Figure 30: Electrabels gas supply volumes revenue breakdown, by sector, 2005
  - Figure 31: Electrabels gas supply volumes revenue breakdown, by competitive arena, 2005
  - Figure 32: Generation capacity (MW) for 12 leading European energy companies across 32 European markets, broken down by fuel type, 2005
  - Figure 33: Generation capacity (MW) across the EU 32 markets by sector and competitive arena, 2005
  - Figure 34: Generation capacity (MW) across the Nordic competitive arena by company, 2005
  - Figure 35: Generation capacity (MW) across the NWE competitive arena by company, 2005
  - Figure 36: Generation capacity (MW) across the CEE competitive arena by company, 2005
  - Figure 37: Generation capacity (MW) across the WMed competitive arena by company, 2005
  - Figure 38: Electrabels generation capacity (MW) market share across 32 European markets, 2005
  - Figure 39: Electrabels renewable capacity (MW) market share across 32 European markets, 2005
  - Figure 40: Electrabels generation fuel mix across its European asset base, 2005
  - Figure 41: Electrabels generation fuel mix across its European asset base against EU 32 market proportions, 2005
  - Figure 42: Electrabel owned generation capacity (MW) breakdown by country, 2005
  - Figure 43: Electrabel generation capacity (MW) market share in each European country, 2005
  - Figure 44: Electrabels generation output by fuel type, 2005
  - Figure 45: Electrabels generation output breakdown, by competitive arena, 2005
  - Figure 46: Estimated absolute Net Trade Requirements (NTR)* for power, for the benchmarked 12 players, 2005
  - Figure 47: Estimated percentage Net Trade Requirements (NTR)* for power, for the benchmarked 12 players, 2005
  - Figure 48: Electrabels Power NTR position across the European markets it is active in
  - Figure 49: Operating income vs. NTR position for 12 benchmarked players, 2004/2005
  - Figure 50: Estimated absolute Net Trade Requirements (NTR)* for gas, for the 12 benchmarked players, 2005
  - Figure 51: Estimated percentage Net Trade Requirements (NTR)* for gas, for the 12 benchmarked players, 2005
  - Figure 52: Revenue and net income for 12 energy companies benchmarked, 2004
  - Figure 53: Electrabels revenue and net income 5 year summary, 2000-2004
  - Figure 54: PE ratio for listed companies, for the 12 companies benchmarked, 2004*
  - Figure 55: Debt/Equity ratio for 12 benchmarked companies, 2004
  - Figure 56: Free Cash Flow for the 12 benchmarked companies, 2004
  - Figure 57: Understanding Datamonitors European Utility Scorecard
  - Figure 58: Datamonitors MCI Index scale for market assessment
  - Figure 59: The MCI Index is calculated by deriving a weighted average of scores over 9 key metrics

European Utilities Key Players and Strategies - Electrabel

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