IFBC Sector Report 2022 – Energy

Massive increases in energy prices, the need to protect the climate, the threat of energy shortages and the need to ensure supply security – the actual geopolitical developments are putting the energy issue strongly into the eye of the public. The current assessment of the situation of Swiss energy utilities nevertheless shows a differentiated view. Thanks to rising energy prices, producing companies in particular should be able to increase their profitability and return on investment in the upcoming years. On the other hand, however, the industry is facing numerous challenges. The implementation of climate policy requirements, changing customer needs and new technologies are forcing companies to rethink their existing business models and to adapt to the new circumstances.

The transition to implement the new climate policies requires high investments and a consistent conversion and expansion of the existing infrastructure. Therefore, a large amount of their future cash flows will have to be directly reinvested by the utilities in the coming years. The IFBC Sector Report – Energy has therefore examined the financial situation of the 27 largest Swiss energy utilities and shows that the industry from a financial perspective is basically well and sufficiently prepared for the upcoming challenges.

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The refinancing requirements from existing corporate bonds in the Swiss energy sector amounts up to CHF 5.2 billion until 2025. Thanks to consistently high equity ratios, particularly the large and medium-sized utilities are showing a large debt financing potential, especially for investments in the transformation and development of the energy system.

The question remains open as how the short-term energy supply situation can be secured and by which measures and at what price the security of supply can be guaranteed in the long-run.

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IFBC Sector Report 2022 - Energy (publication in German)

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