European Utilities Key Player Profiles: Eneco

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
  • METHODOLOGY
• ANALYSIS
  • European Utilities Key Player Profile: Eneco
  • Datamonitor' s Key Player Scorecard examines 31 leading utilities drawn from across Europe' s competitive arenas
    • Key Players dominate power generation capacity market share in the Wmed competitive arena
    • Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
    • Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
    • Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
  • The Key Player Scorecard assesses utilities across four pillars: Performance, Scale, Growth and Exposure
    • The Performance pillar combines 5 financial metrics to measure business performance
    • The Scale pillar combines financial and operational metrics to measure the size of a utility
    • The Growth pillar measures the rate of growth of a utility' s financial and energy resources
    • The Exposure pillar combines both operational and financial measurements of risk
  • Eneco scores 27.9/100 on Datamonitor' s European Utility Scorecard and ranks 25 out of the 31 Key Players covered
    • Eneco ranks in the bottom half of Key Player utilities on three of the four Scorecard pillars
    • Eneco achieves an overall ranking of 25, with a utility score of 27.9
    • Only on the Growth pillar does Eneco score the Key Player average
    • Eneco performs below the Key Player average and most top ten utilities, yet it has a slightly higher than average level of risk
    • Eneco lags the Key Player average in Scale, but is roughly average in terms of Growth
  • On four of the five Performance metrics Eneco scores below the Key Player average, for an overall ranking of 20 on this pillar
    • Eneco' s overall financial Performance score of 9.8 underperforms the Key Player average of 10.9
    • Eneco mirrors the Key Player average in operating profit margin, but underperforms on return on sales
    • Eneco scores well below average on return on energy volume
  • Eneco is a middle-ranked utility on gas supply volume, but ranks 27 overall on the Scale pillar
    • Eneco trails the average score on each Scale metric, and ranks below average on all but gas supply volume
    • In generation capacity, Eneco ranks 25 with 0.8 GW
    • Though Eneco is an integrated utility, its gas supply volume exceeds power supply volume by almost three to one
    • Eneco has a 3.5% share of Key Player power customers
    • Eneco ranks 21 in terms of power supply volume
    • Eneco' s share of the gas market is negligible, with less than one percent of Key Player gas customers
    • Eneco' s market share of EU25 gas supply volume is less than one percent
    • Eneco ranks 26 in revenue and 24 in net income, respectively
  • Eneco ranks 6 in revenue growth, yet lags on other metrics for an overall Growth rank of 13
    • Eneco falls well below the Key Player average on growth in operating cash flow and profits
    • Eneco is not a listed company, and so has no price earnings ratio
    • From 2001-2005, Eneco' s average annual profit growth (8.4%) kept pace with revenue growth of 10.5%
    • Despite an increase in power supply volume of 9.2% from 2004-2005, Eneco' s operating cash flow declined -3.6%
  • Eneco has a high power NTR, pulling its Exposure ranking down to 20 out of 31
    • Eneco has lower Exposure rankings on operational than financial metrics
    • Eneco has a short power and gas NTR of -74.9% and -100%, respectively
    • Eneco' s power supply volume obligations exceed its generation output, leading to a power NTR of 16,500 GW
    • Eneco' s is comparatively lightly leveraged, with a debt to equity ratio of 39.8%
    • Eneco ranks 9 of the 31 Key Players in terms of debt leverage
    • Though Eneco' s energy supply volume has grown 2.2%, operating cash flow has declined -3.6%
  • Eneco power and gas supply volumes are sold in the Netherlands
    • Gas-fired plants are Eneco' s main generation capacity type
    • Eneco has a 3.5% share of Key Player power customers
    • Eneco' s share of the gas market is negligible, with less than one percent of Key Player gas customers
• APPENDIX
  • Databook
  • Definitions
  • Datamonitor Consulting
  • List of Tables
    • Table 1: The Key Players are drawn from across a diverse range of markets
    • Table 2: The Performance pillar combines 5 financial metrics to measure business performance
    • Table 3: The Scale pillar combines financial and operational metrics to measure the size of a utility
    • Table 4: The Growth pillar measures the rate of growth of a utility' s financial and energy resources
    • Table 5: The Exposure pillar combines both operational and financial measurements of risk
    • Table 6: Eneco scores 27.9/100 on Datamonitor' s European Utility Scorecard and ranks 25 out of the 31 Key Players covered
    • Table 7: Eneco scores 9.8/25 on the Performance pillar, and ranks 20 out of 31 on this measurement
    • Table 8: Eneco scores 0.9/25 on the Scale pillar, and ranks 27 out of 31 on this measurement
    • Table 9: Eneco scores 8.9/25 on the Growth pillar, and ranks 13 out of 31 on this measurement
    • Table 10: Eneco scores 8.3/25 on the Exposure pillar, and ranks 20 out of 31 on this measurement
    • Table 11: On four of the five Performance metrics Eneco scores below the Key Player average, for an overall ranking of 20 on this pillar
    • Table 12: Eneco is a middle-ranked utility on gas supply volume, but ranks 27 overall on the Scale pillar
    • Table 13: Eneco ranks 6 in revenue growth, yet lags on other metrics for an overall Growth rank of 13
    • Table 14: Eneco has a high power NTR, pulling its Exposure ranking down to 20 out of 31
    • Table 15: Return on fixed assets
    • Table 16: Return on sales
    • Table 17: Operating profit margin
    • Table 18: Return on energy volume
    • Table 19: Return on investment
    • Table 20: Generation Capacity / EU25 market total
    • Table 21: Power Supply Volume / EU25 market total
    • Table 22: Gas Supply Volume / EU25 market total
    • Table 23: Net income / Net income of 94 leading utilities
    • Table 24: Revenue / Revenue of 94 leading utilities
    • Table 25: Revenue growth, 2001-2005 CAGR
    • Table 26: Profit growth, 2001-2005 CAGR
    • Table 27: Growth in operating cash flow, 2004 to 2005
    • Table 28: Gas supply volume growth, 2004-2005
    • Table 29: Growth in power supply volume, 2004 to 2005
    • Table 30: Power NTR / Power supply volume
    • Table 31: Gas NTR / Gas supply volume
    • Table 32: Debt leverage
    • Table 33: Growth in operational cash flow - Growth in energy volume
  • List of Figures
    • Figure 1: Datamonitor' s Key Player Scorecard examines 31 leading utilities drawn from across Europe' s competitive arenas
    • Figure 2: Key Players dominate power generation capacity market share in the Wmed competitive arena
    • Figure 3: Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
    • Figure 4: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
    • Figure 5: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
    • Figure 6: Eneco achieves an overall ranking of 25, with a utility score of 27.9
    • Figure 7: Only on the Growth pillar does Eneco score the Key Player average
    • Figure 8: Eneco performs below the Key Player average and most top ten utilities, yet it has a slightly higher than average level of risk
    • Figure 9: Eneco lags the Key Player average in Scale, but is roughly average in terms of Growth
    • Figure 10: Eneco' s overall financial Performance score of 9.8 underperforms the Key Player average of 10.9
    • Figure 11: Eneco mirrors the Key Player average in operating profit margin, but underperforms on return on sales
    • Figure 12: Eneco scores well below average on return on energy volume
    • Figure 13: Eneco trails the average score on each Scale metric, and ranks below average on all but gas supply volume
    • Figure 14: In generation capacity, Eneco ranks 25 with 0.8 GW
    • Figure 15: Though Eneco is an integrated utility, its gas supply volume exceeds power supply volume by almost three to one
    • Figure 16: Eneco has a 3.5% share of Key Player power customers
    • Figure 17: Eneco ranks 21 in terms of power supply volume
    • Figure 18: Eneco' s share of the gas market is negligible, with less than one percent of Key Player gas customers
    • Figure 19: Eneco' s market share of EU25 gas supply volume is less than one percent
    • Figure 20: Eneco ranks 26 in revenue and 24 in net income, respectively
    • Figure 21: Eneco falls well below the Key Player average on growth in operating cash flow and profits
    • Figure 22: Eneco is not a listed company, and so has no price earnings ratio
    • Figure 23: From 2001-2005, Eneco' s average annual profit growth (8.4%) kept pace with revenue growth of 10.5%
    • Figure 24: Despite an increase in power supply volume of 9.2% from 2004-2005, Eneco' s operating cash flow declined -3.6%
    • Figure 25: Eneco has lower Exposure rankings on operational than financial metrics
    • Figure 26: Eneco has a short power and gas NTR of -74.9% and -100%, respectively
    • Figure 27: Eneco' s power supply volume obligations exceed its generation output, leading to a power NTR of 16,500 GW
    • Figure 28: Eneco' s is comparatively lightly leveraged, with a debt to equity ratio of 39.8%
    • Figure 29: Eneco ranks 9 of the 31 Key Players in terms of debt leverage
    • Figure 30: Though Eneco' s energy supply volume has grown 2.2%, operating cash flow has declined -3.6%
    • Figure 31: Gas-fired plants are Eneco' s main generation capacity type
    • Figure 32: Eneco has a 3.5% share of Key Player power customers
    • Figure 33: Eneco' s share of the gas market is negligible, with less than one percent of Key Player gas customers