In 2016 Repower posted total operating revenue of CHF 1.7 billion in what remained a challenging environment, closing the financial year with a significant year-on-year increase in operating income. An increase in capital enabled the company to broaden its shareholder base and create a good foundation for developing its new fields of business. Repower strengthened its partner strategy, invested in security of supply, and delivered projects to safeguard the value of its hydropower assets.
The market environment remained challenging in 2016, a year marked by persistently low energy prices overall, despite a slight recovery, and the low EUR/CHF exchange rate. Political instability and factors distorting the international energy market added to the uncertainty, leading to a great deal of nervousness and volatility. This resulted in a firming in prices on the energy markets in autumn 2016, although this did not constitute a sustained recovery.
This scenario also affected Repower over the year under review. The company saw an eight per cent year-on-year decline in total operating revenue to CHF 1.7 million. Operating income (EBIT) was substantially higher than the previous year at CHF 22 million (CHF -69 million in 2015). Contributory factors included revenues from the day-ahead and balancing energy market in Italy, the disposal of non-operational properties, and the sale of the subsidiary connecta ag. The increase in market prices in the fourth quarter also had a positive impact on results in the form of impairment gains on generation assets. Extraordinary items such as an increase in provisions for long-term agreements and impairments on overdue receivables in the sales business in Italy had a negative impact on results. Group result came to CHF -13 million.
Read more about Repower operations on: 4-traders.