Table of Contents
DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS
2
European Utilities Key Player Profile: Scottish Power 2
Datamonitor' s Key Player Scorecard examines 31 leading utilities drawn from
across Europe' s competitive arenas 4
Key Players dominate power generation
capacity market share in the Wmed competitive arena 5
Key Players dominate
power generation output market share in the Wmed and CEE competitive arenas
6
Despite ongoing industry consolidation, in no competitive arenas do Key
Players dominate power supply volume market share 7
Despite ongoing
industry consolidation, in no competitive arenas do Key Players dominate gas
volume market share 8
The Key Player Scorecard assesses utilities across
four pillars: Performance, Scale, Growth and Exposure 9
The Performance
pillar combines 5 financial metrics to measure business performance 10
The
Scale pillar combines financial and operational metrics to measure the size of
a utility 11
The Growth pillar measures the rate of growth of a utility' s
financial and energy resources 12
The Exposure pillar combines both
operational and financial measurements of risk 13
Scottish Power scores
17/100 on Datamonitor' s European Utility Scorecard and ranks 31 out of the 31
Key Players covered 14
Scottish Power scores well below average on all but
the Exposure pillar 16
Scottish Power achieves an overall ranking of 31,
with a utility score of 17 21
Scottish Power' s low overall ranking is a
result of poor financial performance in 2005 22
Scottish Power has an
average level of risk but low levels of profitability 23
On the Scale and
Growth measures Scottish Power scores well below average 24
Scottish Power
had net losses in 2005, contributing to its Performance ranking of 31 overall
25
Scottish Power' s financial performance is the lowest of the Key
Players, with a score of 0 26
Net losses in 2005 provide Scottish Power
with negative returns on fixed assets and sales 27
Net losses in 2005
provide Scottish Power with negative returns on investment and energy volumes
28
Scottish Power ranks poorly on the Scale pillar due to recent net
losses, yet most scale metrics are roughly average 29
On Scale factors
Scottish Power ranks 26 30
In terms of generation capacity Scottish Power
ranks 17 with 6,366 MW 31
Scottish Power' s power volume is 61% of its gas
volume 32
Scottish Power has a 2.8% share of Key Player power customers
33
At 26.6 TWh, Scottish Power ranks 20 in terms of power volume 34
Despite having significant gas volume, Scottish Power does not figure in
rankings of gas customers due to lack of information 35
Scottish Power
ranks 17 in terms of gas volume 36
Scottish Power ranks 16 in terms of
revenue but 31 in terms of net income 37
Scottish Power' s Growth ranking
of 29 is driven by poor net profit and revenue growth 38
Scottish Power
underperforms on Growth metrics, except for gas supply volume growth where it
pulls ahead of other Key Players 39
With Scottish Power' s earnings at a
net loss, its price earnings ratio is not relevant 40
From 2001 to 2005,
Scottish Power' s annual revenue growth was (-0.6%), yet it had net losses in
both 2002 and 2005 41
Scottish Power' s low debt leverage and net trade
requirements give it an Exposure ranking of 12 overall 42
Most of Scottish
Power' s Exposure measures are above the Key Player averages 43
Scottish
Power is among the 15 Key Players with gas supply volumes but no gas equity
44
Scottish Power' s power volume exceeds its generation output by 9.7%,
leading to a negative net trade requirement of 2.6 TWh 45
At 1.8%,
Scottish Power' s debt to equity ratio is much lower than the ratios of the top
ten Key Players 46
Scottish Power has a very low debt to equity ratio,
giving it a ranking of 2 on this measure 47
Scottish Power' s growth in
operating cash flow has roughly kept up with growth in energy volume 48
Scottish Power' s operations are focused on the UK 49
Scottish Power' s
generation capacity relies mostly on thermal fuels 50
Scottish Power ranks
13th amongst Key Players in terms of the number of power customers 51
Scottish Power has gas supply volumes of 43.7 TWh, yet does not publish gas
customer numbers 52
APPENDIX 53
Databook 53
Definitions 72
Datamonitor Consulting 72
List of Tables
Table 1: The Key Players
are drawn from across a diverse range of markets 3
Table 2: The
Performance pillar combines 5 financial metrics to measure business
performance 10
Table 3: The Scale pillar combines financial and
operational metrics to measure the size of a utility 11
Table 4: The
Growth pillar measures the rate of growth of a utility' s financial and energy
resources 12
Table 5: The Exposure pillar combines both operational and
financial measurements of risk 13
Table 6: Scottish Power scores 17/100 on
Datamonitor' s European Utility Scorecard and ranks 31 out of the 31 Key
Players covered 15
Table 7: Scottish Power scores 0/25 on the Performance
pillar, and ranks 31 out of 31 on this measurement 17
Table 8: Scottish
Power scores 1.1/25 on the Scale pillar, and ranks 26 out of 31 on this
measurement 18
Table 9: Scottish Power scores 6.1/25 on the Growth pillar,
and ranks 29 out of 31 on this measurement 19
Table 10: Scottish Power
scores 9.8/25 on the Exposure pillar, and ranks 12 out of 31 on this
measurement 20
Table 11: Scottish Power had net losses in 2005,
contributing to its Performance ranking of 31 overall 25
Table 12:
Scottish Power ranks poorly on the Scale pillar due to recent net losses, yet
most scale metrics are roughly average 29
Table 13: Scottish Power' s
Growth ranking of 29 is driven by poor net profit and revenue growth 38
Table 14: Return on fixed assets 53
Table 15: Return on sales 54
Table
16: Operating profit margin 55
Table 17: Return on energy volume 56
Table 18: Return on investment 57
Table 19: Generation Capacity / EU25
market total 58
Table 20: Power Supply Volume / EU25 market total 59
Table 21: Gas Supply Volume / EU25 market total 60
Table 22: Net income /
Net income of 94 leading utilities 61
Table 23: Revenue / Revenue of 94
leading utilities 62
Table 24: Revenue growth, 2001-2005 CAGR 63
Table
25: Profit growth, 2001-2005 CAGR 64
Table 26: Growth in operating cash
flow, 2004 to 2005 65
Table 27: Gas supply volume growth, 2004-2005 66
Table 28: Growth in power supply volume, 2004 to 2005 67
Table 29: Power
NTR / Power supply volume 68
Table 30: Gas NTR / Gas supply volume 69
Table 31: Debt leverage 70
Table 32: Growth in operational cash flow -
Growth in energy volume 71
List of Figures
Figure 1: Datamonitor' s
Key Player Scorecard examines 31 leading utilities drawn from across Europe' s
competitive arenas 4
Figure 2: Key Players dominate power generation
capacity market share in the Wmed competitive arena 5
Figure 3: Key
Players dominate power generation output market share in the Wmed and CEE
competitive arenas 6
Figure 4: Despite ongoing industry consolidation, in
no competitive arenas do Key Players dominate power supply volume market share
7
Figure 5: Despite ongoing industry consolidation, in no competitive
arenas do Key Players dominate gas volume market share 8
Figure 6:
Scottish Power achieves an overall ranking of 31, with a utility score of 17
21
Figure 7: Scottish Power' s low overall ranking is a result of poor
financial performance in 2005 22
Figure 8: Scottish Power has an average
level of risk but low levels of profitability 23
Figure 9: On the Scale
and Growth measures Scottish Power scores well below average 24
Figure 10:
Scottish Power' s financial performance is the lowest of the Key Players, with
a score of 0 26
Figure 11: Net losses in 2005 provide Scottish Power with
negative returns on fixed assets and sales 27
Figure 12: Net losses in
2005 provide Scottish Power with negative returns on investment and energy
volumes 28
Figure 13: On Scale factors Scottish Power ranks 26 30
Figure 14: In terms of generation capacity Scottish Power ranks 17 with 6,366
MW 31
Figure 15: Scottish Power' s power volume is 61% of its gas volume
32
Figure 16: Scottish Power has a 2.8% share of Key Player power
customers 33
Figure 17: At 26.6 TWh, Scottish Power ranks 20 in terms of
power volume 34
Figure 18: Despite having significant gas volume, Scottish
Power does not figure in rankings of gas customers due to lack of information
35
Figure 19: Scottish Power ranks 17 in terms of gas volume 36
Figure
20: Scottish Power ranks 16 in terms of revenue but 31 in terms of net income
37
Figure 21: Scottish Power underperforms on Growth metrics, except for
gas supply volume growth where it pulls ahead of other Key Players 39
Figure 22: With Scottish Power' s earnings at a net loss, its price earnings
ratio is not relevant 40
Figure 23: From 2001 to 2005, Scottish Power' s
annual revenue growth was (-0.6%), yet it had net losses in both 2002 and 2005
41
Figure 24: Most of Scottish Power' s Exposure measures are above the Key
Player averages 43
Figure 25: Scottish Power is among the 15 Key Players
with gas supply volumes but no gas equity 44
Figure 26: Scottish Power' s
power volume exceeds its generation output by 9.7%, leading to a negative net
trade requirement of 2.6 TWh 45
Figure 27: At 1.8%, Scottish Power' s debt
to equity ratio is much lower than the ratios of the top ten Key Players
46
Figure 28: Scottish Power has a very low debt to equity ratio, giving
it a ranking of 2 on this measure 47
Figure 29: Scottish Power' s growth in
operating cash flow has roughly kept up with growth in energy volume 48
Figure 30: Scottish Power' s generation capacity relies mostly on thermal fuels
50
Figure 31: Scottish Power ranks 13th amongst Key Players in terms of
the number of power customers 51
Figure 32: Scottish Power has gas supply
volumes of 43.7 TWh, yet does not publish gas customer numbers 52
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