Eneco’s Profit Down on Lower Gas and Electricity Prices

Dutch energy company Eneco Group recorded EUR 139 million profit after income tax , slightly less than the EUR 144 million made by the company in the same period last year, as a result of lower prices for gas and, to a smaller extent, for electricity.

The group’s grid operator, Stedin, and the energy company, Eneco, contributed more or less equally to the result.

Eneco Group’s revenue fell to EUR 2,076 million, a 12% decrease compared to EUR 2,363 million reported for the first half of 2015.

However, the company’s gross margin on sales and transmission of gas, electricity and heating and related activities rose by EUR 47 million to EUR 894 million, mainly because a number of large wind farms came on stream during the second half of 2015, including the 129MW Eneco Luchterduinen offshore wind farm.

In March, Eneco Group and Mitsubishi Corporation agreed a refinancing of Eneco Luchterduinen, which they jointly own.

A consortium of banks made some EUR 450 million available for the refinancing of this wind farm, which is 22 kilometres off the coast at Noordwijk.

Guido Dubbeld,  CFO of Eneco Group, said: ”Eneco and Mitsubishi Corporation constructed the farm using their own resources. With the refinancing, we have recovered a large portion of this and are using these funds to invest in new sustainable projects.”

Eneco and Mitsubishi Corporation both own 50% of the wind farm. The 43 wind turbines at Eneco Luchterduinen have been operational since August 2015.

The group recently called on the Dutch government to plan for an additional 700MW of offshore wind farms to replace the co-firing of biomass in coal-fired plants.