Romande Energie Holding (REHN) H1 2024 earnings summary

Executive summary

• H1 2024 marked by sharply lower results due to regulatory turbulence, market volatility, and increased solar production, but foundational grid and services businesses remained stable and strategy was updated to 2030 with a focus on decarbonization, flexibility, and digital transformation.

• Net revenues fell 13% year-over-year to CHF 426m, with EBIT dropping to CHF 20m and net profit at CHF 56m–66m, supported by associate income from Alpiq and EOS.

• Headcount rose 13% to 1,474, driven by insourcing and acquisition of DSO staff.

Financial highlights

• H1 2024 revenues at CHF 426m, EBIT at CHF 20m, and net profit at CHF 56m–66m, all significantly lower than 2023 but similar to 2022.

• EBITDA decreased 45% to CHF 65m; operating margin at 5%, below the usual 7–8%.

• Energy margin contracted sharply from CHF 26.3m to CHF 3m due to market resales at a loss, higher balancing power costs, and regulatory pricing constraints.

• Cash flow from operating activities was CHF 26m, down from CHF 39m; capital expenditure reached CHF 68m.

• Equity ratio remained strong at 79–80% of total assets.

Outlook and guidance

• 2024 results expected to remain atypically low due to regulatory restrictions and market volatility, with positive momentum and margin recovery anticipated from 2025 as regulatory headwinds ease and investment returns materialize.

• Strategy updated and extended to 2030, emphasizing flexibility, storage, and grid reinforcement to manage solar volatility.

• CHF 1.4 billion investment planned through 2027, with returns expected to strengthen annually.