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Market Research Report
European Utilities Key Player Profiles: E.On
| Published by |
Datamonitor |
| Published |
February, 2007 |
Product code |
49809 |
| Content info |
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| Price |
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This publication has been discontinued on July 19, 2011.
Abstract
Introduction
The Performance pillar combines 5 financial metrics to measure business
performance. The Scale pillar combines financial and operational metrics to
measure the size of a utility. The Growth pillar measures the rate of growth
of a utility' s financial and energy resources. The Exposure pillar combines
both operational and financial measurements of risk.
Scope
- A thorough review of the key operational and financial metrics that drive
utility performance.
- A comparison and ranking of key metrics across Europe' s leading utilities.
Report Highlights
The Finnish utility Fortum leads on the Performance pillar and Russia' s
Gazprom on the Scale pillar whilst Denmark' s Dong leads in both the Growth and
Exposure pillars
Reasons to Purchase
- See where a company ranks in European utility scorecard
- Gain a comprehensive assessment of a company' s market share across Europe
- Acquire a wealth of company data from retail volumes to structural hedge
positions
Table of Contents
- CATALYST
- SUMMARY
- METHODOLOGY
- ANALYSIS
- European Utilities Key Player Profile: E.ON
- Key Player Scorecard examines 31 leading utilities drawn from across
Europe' s competitive arenas
- Key Players dominate power generation capacity market share in the
Wmed competitive arena
- Key Players dominate power generation output market share in the Wmed
and CEE competitive arenas
- Despite ongoing industry consolidation, in no competitive arenas do
Key Players dominate power supply volume market share
- Despite ongoing industry consolidation, in no competitive arenas do
Key Players dominate gas volume market share
- The Key Player Scorecard assesses utilities across four pillars:
Performance, Scale, Growth and Exposure
- The Performance pillar combines 5 financial metrics to measure
business performance
- The Scale pillar combines financial and operational metrics to measure
the size of a utility
- The Growth pillar measures the rate of growth of a utility' s financial
and energy resources
- The Exposure pillar combines both operational and financial
measurements of risk
- E.ON scores 43.5/100 on Datamonitor' s European Utility Scorecard and
ranks 5 out of the 31 Key Players covered
- E.ON' s ranking varies widely across the four pillars
- E.ON achieves an overall ranking of 5, with a utility score of 43.5
- E.ON' s high overall ranking is driven by a significantly higher than
average Scale score
- Most top ten utilities perform better than E.ON, but with similar or
lower levels of risk (a similar or higher Exposure score)
- On the Scale measure E.ON surpasses its peers, but is only slightly
above average in terms of Growth
- E.ON scores well on return on sales, but lags on other metrics, with a
Performance ranking of 17 overall
- E.ON' s financial performance is in line with the Key Player average,
with a score of 10.3
- E.ON has an average operating profit margin and return on fixed
assets, and has only slightly above average return on sales
- E.ON lags the top ten utilities in return on investment and return on
energy volume
- E.ON ranks highly in the Scale pillar, on all measures
- On Scale factors E.ON surpasses almost all other Key Players
- In terms of generation capacity E.ON ranks 3 with 49.8 GW
- E.ON' s gas supply volume is more than twice its power supply volume
- E.ON has a 13% share of Key Player power customers
- At 404.1 TWh, E.ON ranks 2 in terms of power volume
- E.ON has a 6.2% share of Key Player gas customers
- E.ON ranks 2 in terms of gas volume
- E.ON ranks 2 in terms of revenue and 3 in terms of net income
- E.ON' s Growth ranking of 8 is driven by above average profit growth
- E.ON' s growth metrics are average except for power supply volume
growth, where it lags the average
- E.ON' s price earnings ratio and operating profit margin lag behind
most other Key Players
- From 2001 to 2005, E.ON' s annual profit growth (29.3%) far exceeded
its revenue growth (8.6%)
- E.ON' s growth in operating cash flow (11.9%) has exceeded gas (6.5%)
and power (3%) volume growth from 2004 to 2005
- E.ON has an average level of risk, illustrated by its overall Exposure
ranking of 16
- E.ON' s Exposure measures are roughly in line with the Key Player
averages
- At -95.1%, E.ON' s gas NTR as a proportion of its gas supply
obligations is ranked 9 overall
- E.ON' s power volume exceeds its generation output by 34.3%, leading to
a negative net trade requirement of 139.1 TWh
- At 1.3, E.ON' s debt to equity ratio is higher than most of its top ten
Key Player peers
- Despite having the second highest level of equity, E.ON ranks 21 in
terms of debt leverage amongst the Key Players
- E.ON' s growth in operating cash flow has not fully kept up with the
utility' s growth in energy volume
- E.ON has a diverse geographic spread of operations
- Nuclear and coal plants represent over half of E.ON' s power generation
capacity
- E.ON has significant power sales in 3 European competitive arenas and
the US
- E.ON sells gas in 3 competitive arenas and the US
- E.ON owns significant power capacity in four countries
- E.ON ranks third amongst Key Players in terms of the number of power
customers
- E.ON ranks fifth amongst Key Players in terms of the number of gas
customers
- APPENDIX
- Databook
- Definitions
- List of Tables
- Table 1: The Key Players are drawn from across a diverse range of
markets
- Table 2: The Performance pillar combines 5 financial metrics to
measure business performance
- Table 3: The Scale pillar combines financial and operational metrics
to measure the size of a utility
- Table 4: The Growth pillar measures the rate of growth of a utility' s
financial and energy resources
- Table 5: The Exposure pillar combines both operational and financial
measurements of risk
- Table 6: E.ON scores 43.5/100 on Datamonitor' s European Utility
Scorecard and ranks 5 out of the 31 Key Players covered
- Table 7: E.ON scores 10.3/25 on the Performance pillar, and ranks 17
out of 31 on this measurement
- Table 8: E.ON scores 14.6/25 on the Scale pillar, and ranks 2 out of
31 on this measurement
- Table 9: E.ON scores 9.7/25 on the Growth pillar, and ranks 8 out of
31 on this measurement
- Table 10: E.ON scores 8.8/25 on the Exposure pillar, and ranks 16 out
of 31 on this measurement
- Table 11: E.ON scores well on return on sales, but lags on other
metrics, with a Performance ranking of 17 overall
- Table 12: E.ON ranks highly in the Scale pillar, on all measures
- Table 13: E.ON' s Growth ranking of 8 is driven by above average profit
growth
- Table 14: E.ON has an average level of risk, illustrated by its
overall Exposure ranking of 16
- Table 15: Return on fixed assets
- Table 16: Return on sales
- Table 17: Operating profit margin
- Table 18: Return on energy volume
- Table 19: Return on investment
- Table 20: Generation Capacity / EU25 market total
- Table 21: Power Supply Volume / EU25 market total
- Table 22: Gas Supply Volume / EU25 market total
- Table 23: Net income / Net income of 94 leading utilities
- Table 24: Revenue / Revenue of 94 leading utilities
- Table 25: Revenue growth, 2001-2005 CAGR
- Table 26: Profit growth, 2001-2005 CAGR
- Table 27: Growth in operating cash flow, 2004 to 2005
- Table 28: Gas supply volume growth, 2004-2005
- Table 29: Growth in power supply volume, 2004 to 2005
- Table 30: Power NTR / Power supply volume
- Table 31: Gas NTR / Gas supply volume
- Table 32: Debt leverage
- Table 33: Growth in operational cash flow - Growth in energy volume
- List of Figures
- Figure 1: Datamonitor' s Key Player Scorecard examines 31 leading
utilities drawn from across Europe' s competitive arenas
- Figure 2: Key Players dominate power generation capacity market share
in the Wmed competitive arena
- Figure 3: Key Players dominate power generation output market share in
the Wmed and CEE competitive arenas
- Figure 4: Despite ongoing industry consolidation, in no competitive
arenas do Key Players dominate power supply volume market share
- Figure 5: Despite ongoing industry consolidation, in no competitive
arenas do Key Players dominate gas volume market share
- Figure 6: E.ON achieves an overall ranking of 5, with a utility score
of 43.5
- Figure 7: E.ON' s high overall ranking is driven by a significantly
higher than average Scale score
- Figure 8: Most top ten utilities perform better than E.ON, but with
similar or lower levels of risk (a similar or higher Exposure score)
- Figure 9: On the Scale measure E.ON surpasses its peers, but is only
slightly above average in terms of Growth
- Figure 10: E.ON' s financial performance is in line with the Key Player
average, with a score of 10.3
- Figure 11: E.ON has an average operating profit margin and return on
fixed assets, and has only slightly above average return on sales
- Figure 12: E.ON lags the top ten utilities in return on investment and
return on energy volume
- Figure 13: On Scale factors E.ON surpasses almost all other Key Players
- Figure 14: In terms of generation capacity E.ON ranks 3 with 49.8 GW
- Figure 15: E.ON' s gas supply volume is more than twice its power
supply volume
- Figure 16: E.ON has a 13% share of Key Player power customers
- Figure 17: At 404.1 TWh, E.ON ranks 2 in terms of power volume
- Figure 18: E.ON has a 6.2% share of Key Player gas customers
- Figure 19: E.ON ranks 2 in terms of gas volume
- Figure 20: E.ON ranks 2 in terms of revenue and 3 in terms of net
income
- Figure 21: E.ON' s growth metrics are average except for power supply
volume growth, where it lags the average
- Figure 22: E.ON' s price earnings ratio and operating profit margin lag
behind most other Key Players
- Figure 23: From 2001 to 2005, E.ON' s annual profit growth (29.3%) far
exceeded its revenue growth (8.6%)
- Figure 24: E.ON' s growth in operating cash flow (11.9%) has exceeded
gas (6.5%) and power (3%) volume growth from 2004 to 2005
- Figure 25: E.ON' s Exposure measures are roughly in line with the Key
Player averages
- Figure 26: At -95.1%, E.ON' s gas NTR as a proportion of its gas supply
obligations is ranked 9 overall
- Figure 27: E.ON' s power volume exceeds its generation output by 34.3%,
leading to a negative net trade requirement of 139.1 TWh
- Figure 28: At 1.3, E.ON' s debt to equity ratio is higher than most of
its top ten Key Player peers
- Figure 29: Despite having the second highest level of equity, E.ON
ranks 21 in terms of debt leverage amongst the Key Players
- Figure 30: E.ON' s growth in operating cash flow has not fully kept up
with the utility' s growth in energy volume
- Figure 31: Nuclear and coal plants represent over half of E.ON' s power
generation capacity
- Figure 32: E.ON has significant power sales in 3 European competitive
arenas and the US
- Figure 33: E.ON sells gas in 3 competitive arenas and the US
- Figure 34: E.ON owns significant power capacity in four countries
- Figure 35: E.ON ranks third amongst Key Players in terms of the number
of power customers
- Figure 36: E.ON ranks fifth amongst Key Players in terms of the number
of gas customers
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