Company Graphics: Benchmarking European Utilities

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • Benchmarking utilities across Europe allows for key assumptions about utility performance to be tested
  • SUMMARY
  • METHODOLOGY
• ANALYSIS
  • There is no correlation between size and profitability
  • There is no correlation between amount of fixed assets and return on fixed assets
  • Power companies are outperforming gas companies, but low returns on fixed assets highlight future difficulties
  • How a net trade requirement is managed is more important than whether a utility is long or short
  • Profits per unit of energy volume relate strongly to operating efficiency, but significant differences persist among top utilities
  • Appendix
    • Extended Methodology
    • Further Reading
    • Datamonitor Consultancy
    • Ask the Analyst
  • List of Figures
    • Figure 1: Size versus profitability for 95 energy companies
    • Figure 2: Size versus profitability for gas-only companies
    • Figure 3: Size versus profitability for power-only companies
    • Figure 4: Size versus profitability for integrated power and gas companies
    • Figure 6: Fixed assets versus return on fixed assets for 95 energy companies
    • Figure 6: Fixed assets versus return on fixed assets for gas-only companies
    • Figure 7: Fixed assets versus return on fixed assets for power-only companies
    • Figure 8: Fixed assets versus return on fixed assets for integrated power and gas companies
    • Figure 9: Average operating margins are highest for integrated utilities
    • Figure 10: Average return on fixed assets is 13.2% higher for gas than for power utilities
    • Figure 11: Average return on sales is higher for power than for gas utilities
    • Figure 12: 10 shortest power NTRs among integrated power and gas companies
    • Figure 13: 10 shortest gas NTRs among integrated power and gas companies
    • Figure 14: Gas NTR and profitability for 21 gas-only companies
    • Figure 15: Power NTR and profitability for 38 power-only companies
    • Figure 16: 15 highest returns on energy volume compared with operating margins