engleski

In Search of New EU Energy Reforms: Assessing the Financial Performance of the EU Energy Companies

To unveil the challenges the European energy industry faces, this paper looks at the financial performance of three energy companies that are similar considering their size in terms of employment or installed capacity, but different in terms of the energy generation mix in the period 2011-2013. The financial performance analysis derived from the company’s financial statements is conducted as the analysis of the main financial ratios. Furthermore, the paper aims to draw general conclusions on how the share of conventional power plants in the companies’ generation mix has affecte6d their operation as a whole. Finally, the paper discusses the trends in the energy industry, in particular regarding gas- fired power plants, as well the opportunities and threats facing them in the context of achieving the EU strategic energy goals. The results show that companies with a higher share of conventional thermal power plants in their energy mix operate with a significant decrease in profit, even with a loss, and generally face a decrease in their asset value. This is opposite to companies with large diversified portfolios and shares of renewables. Since conventional power plants, especially high- performing and flexible gas- fired cogeneration ones, may play a key role in producing the peak load and even the base load power, as well as in maintaining high quality in the electricity grid, this situation might jeopardize the achievement of the EU strategic energy goals. Hence, it calls for new energy reforms directed to make them financially attractive for the operation and investment.

energy security ; energy generation mix ; financial performance ; energy companies

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