Energy services provider Open Energy Platform AG (OpenEP) exceeded expectations in the 2020/2021 financial year. The company delivered significant year-on-year growth on the back of high market prices and strong demand.
OpenEP generated sales of CHF 601 million from gas procurement and other services in the latest financial year (1 October 2020 – 30 September 2021), a 17% year-on-year improvement. Gas sales volumes increased from 11.4 TWh to 13.0 TWh. Earnings before interest and tax stood at CHF 629,467, while annual profits reached CHF 406,118. OpenEP’s successful performance last year was primarily rooted in higher sales of services and consistent efforts to streamline costs.
After trending lower in years past, market prices rose quickly during the reporting year, sometimes soaring multiple times over. Credit risks also increased as a result, which led to a greater need for liquidity. OpenEP met the necessary conditions at all times, benefiting from our professional risk management approach and constantly refined risk reporting system. ‘The evolution in prices over the past financial year posed another test on a market that is undergoing considerable change,’ commented OpenEP’s CEO, Rudolf Summermatter. ‘Our employees and solutions once again provided support that we could count on and that delivered significant added value in gas procurement for our customers.’
Thriving in a liberalised market
OpenEP aims to maximise added value for its customers. Along with the evolution in prices and the digital transformation of energy trading, this mission also involves shaping the framework conditions in Switzerland. OpenEP actively lobbies for its customers and advocated a lean market, strong competition and efficient trading during the consultation process for the Swiss Gas Supply Act (GasVG). The legislation’s future design remains unclear after very different positions were staked out during the consultation process in some cases. ‘OpenEP will be involved in future developments and work to move forward the “commoditisation” of gas trading,’ added Mr Summermatter.
Photo: Rudolf Summermatter, CEO OpenEP
OpenEP gained valuable insights into the challenges that lie ahead in Switzerland by entering the liberalised German market in the 2020/2021 financial year. Strong competition in a much larger setting will help the company to grow. In the first year of its involvement, OpenEP forged the first agreements with customers from Germany. The launch of a modern full supply product and a new online reporting tool for managing virtual storage facilities were another highlight during the year under review.
Significant growth in sales expected
The trend in prices on futures and spot markets has intensified further since the end of the 2020/2021 financial year. Market prices will likely recover a little as the year progresses. We anticipate high to very high price levels to continue in the coming autumn and winter due to factors including the crisis in Ukraine and Russia. OpenEP anticipates substantial growth in sales and stable earnings in line with last year’s level in the current financial year.
Challenges for future gas supply
Russia’s invasion of Ukraine has brought major challenges for energy supply in Europe and worldwide. Under these circumstances, the Federal Council has decided to lay the foundations for the Swiss gas industry to cooperate on the procurement of gas and increasing transport, storage and LNG terminal capacity. All of this will ensure the security of supply – especially for the next heating period. Supply for the current year should already be secured. OpenEP is contributing its expertise to solving this problem and working flat out to do its part in securing gas supply.
The company will tackle future challenges with the support of the current Board of Directors, which will remain unchanged for another year. Voters approved the Board of Directors and the annual financial statements for 2020/2021 at the Annual General Meeting on Friday, 11 March 2022, which was held in writing like last year.
Contact:
Jsabelle Sauter, Communications Officer at|Open Energy Platform AG | Beckenhofstrasse 6 | 8006 Zurich
Tel. +41 (0)44 733 62 00 | Email: info@openep.ch