Research Detail
| 2024/09/06 / Erste Group Research |
EPH: Leading utility in Europe’s energy transition EPH, headquartered in Prague, is one of the largest vertically integrated energy utility groups in Europe, with activities across the entire value chain. The two main business areas are regulated infrastructure business (EPIF), responsible for nearly 20% of EPH Group’s total revenues and roughly one-third of EBITDA, and unregulated power generation business (EPPE), accounting for 80% of revenues and the remaining two-thirds of EBITDA. In 2023, EPH generated total revenues of EUR 24.2bn (-34.8% y/y) and a net result of EUR 4.7bn (+24.4% y/y). Total assets amounted to EUR 28.9bn (2022: EUR 30.5bn), while the number of employees almost reached 11,000. Strong credit metrics are reflected in the group’s investment grade rating. S&P affirmed EPH’s rating at BBB- with stable outlook in July 2024, Fitch (also BBB-/stable) in November 2023. EPH is involved in the European energy transition: Coal capacities transferred to sister company EPETr are to be replaced. Investments for renewables, energy projects, batteries, energy-from-waste projects, and highly efficient hydrogen-ready power plants are estimated EUR 10bn. Current EPH net installed capacity of 14 GW is aimed to be increased to >18 GW by 2025 (incl. Slovenské elektrárne, of which EPH holds 33% and has the option for another 33%). As of end-2023, 56% of total financial liabilities (EUR 8.3bn) were made up of bonds and SSDs. In order to gradually replace a part of its debt payable to credit institutions, EPH plans to cover medium- to long-term funding totaling EUR 3bn in the form of corporate bonds (EMTN). The share of bonds is intended to increase to 70%. Recently, a green bond framework was established. |
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General information
| Author | Erste Group Research |
| Date | 2024/09/06 |
| Language |  |
| Product name | Credit News |
| Topic in focus | Credits/ Corporate bonds |
| Economy in focus | Austria |
| Currency in focus | Euro |
| Sector in focus | - |
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