European Utilities Key Player Profiles: Delta

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS 2
European Utilities Key Player Profile: Delta 2
Datamonitor's Key Player Scorecard examines 31 leading utilities drawn from across Europe's competitive arenas 4
Key Players dominate power generation capacity market share in the Wmed competitive arena 5
Key Players dominate power generation output market share in the Wmed and CEE competitive arenas 6
Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share 7
Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share 8
The Key Player Scorecard assesses utilities across four pillars: Performance, Scale, Growth and Exposure 9
The Performance pillar combines 5 financial metrics to measure business performance 10
The Scale pillar combines financial and operational metrics to measure the size of a utility 11
The Growth pillar measures the rate of growth of a utility's financial and energy resources 12
The Exposure pillar combines both operational and financial measurements of risk 13
Delta scores 26.8/100 on Datamonitor's European Utility Scorecard and ranks 26 out of the 31 Key Players covered 14
Delta ranks below the Key Player average on each of the four Scorecard pillars 16
Delta achieves an overall ranking of 26, with a utility score of 26.8 21
Only on Scale does Delta score significantly below the Key Player average 22
Delta scores below the Key Player average on Performance, yet with a slightly higher level of risk 23
Delta is one of the smallest Key Player utilities, yet scores above average in terms of Growth 24
Delta's low operating profit margin pulls its Performance ranking down to 21 25
Delta has a relatively strong return on its fixed assets, but significantly lags the average in operating profit margin 26
Delta beats the Key Player average on return on fixed assets 27
In return on investment, Delta outperforms the Key Player average and several top ten utilities 28
Delta is a smaller utility, ranking 30 on the Scale pillar 29
In Scale, Delta scores worse in net income and revenue metrics, ranking 29 and 30, respectively 30
In terms of generation capacity, Delta ranks 28 with 3.3 GW 31
Delta is a power-focused utility, with power supply volume 79% that of gas supply volume 32
Delta has approximately 0.1% of Key Player power customers 33
At 19 TWh, Delta ranks 23 in terms of power volume 34
Delta has a gas supply volume market share of 0.2% 35
Delta ranks 19 in terms of gas supply volume 36
Delta ranks 30 and 29 terms of revenue and net income, respectively 37
Delta has grown well in energy metrics, but poorly in financial metrics, for a Growth pillar ranking of 19 38
Delta's growth in gas and power supply volume is in the top ten of all Key Players 39
As an unlisted Company, Delta does not have a price earnings ratio 40
From 2001 to 2005, on average Delta's profits decreased -10.1% annually, even though its revenues grew 4.7% annually 41
From 2004-2005, Delta's operating cash flow declined -45.8%, despite significant power and gas supply volume growth 42
Delta is the least leveraged Key Player, yet has seen its operating cash flow decrease, resulting in an Exposure rank of 23 43
Delta's Exposure scores vary widely across financial and operational metrics 44
Delta has a lower gas NTR than the Key Player average 45
Delta's power supply volume is almost balanced by its generation output, leading to a power NTR rank of 11 46
Amongst Key Players Delta is the least leveraged, with a debt to equity ratio of 1.7% 47
On debt leverage, Delta ranks 1 among all Key Players 48
Delta's operating cash flow has dropped sharply, despite a 34.3% growth in energy supply volume 49
Delta's gas and power sales are focused in the Netherlands 50
Delta has a Key Player power customer market share of less than one percent 51
Delta has a Key Player gas customer market share of less than one percent 52
APPENDIX 53
Databook 53
Definitions 72
Definitions 72
Datamonitor Consulting 72
List of Tables
Table 1: The Key Players are drawn from across a diverse range of markets 3
Table 2: The Performance pillar combines 5 financial metrics to measure business performance 10
Table 3: The Scale pillar combines financial and operational metrics to measure the size of a utility 11
Table 4: The Growth pillar measures the rate of growth of a utility's financial and energy resources 12
Table 5: The Exposure pillar combines both operational and financial measurements of risk 13
Table 6: Delta scores 26.8/100 on Datamonitor's European Utility Scorecard and ranks 26 out of the 31 Key Players covered 15
Table 7: Delta scores 9.5/25 on the Performance pillar, and ranks 21 out of 31 on this measurement 17
Table 8: Delta scores 0.5/25 on the Scale pillar, and ranks 30 out of 31 on this measurement 18
Table 9: Delta scores 8.6/25 on the Growth pillar, and ranks 19 out of 31 on this measurement 19
Table 10: Delta scores 8.2/25 on the Exposure pillar, and ranks 23 out of 31 on this measurement 20
Table 11: Delta's low operating profit margin pulls its Performance ranking down to 21 25
Table 12: Delta is a smaller utility, ranking 30 on the Scale pillar 29
Table 13: Delta has grown well in energy metrics, but poorly in financial metrics, for a Growth pillar ranking of 19 38
Table 14: Delta is the least leveraged Key Player, yet has seen its operating cash flow decrease, resulting in an Exposure rank of 23 43
Table 15: Return on fixed assets 53
Table 16: Return on sales 54
Table 17: Operating profit margin 55
Table 18: Return on energy volume 56
Table 19: Return on investment 57
Table 20: Generation Capacity / EU25 market total 58
Table 21: Power Supply Volume / EU25 market total 59
Table 22: Gas Supply Volume / EU25 market total 60
Table 23: Net income / Net income of 94 leading utilities 61
Table 24: Revenue / Revenue of 94 leading utilities 62
Table 25: Revenue growth, 2001-2005 CAGR 63
Table 26: Profit growth, 2001-2005 CAGR 64
Table 27: Growth in operating cash flow, 2004 to 2005 65
Table 28: Gas supply volume growth, 2004-2005 66
Table 29: Growth in power supply volume, 2004 to 2005 67
Table 30: Power NTR / Power supply volume 68
Table 31: Gas NTR / Gas supply volume 69
Table 32: Debt leverage 70
Table 33: Growth in operational cash flow - Growth in energy volume 71
List of Figures
Figure 1: Datamonitor's Key Player Scorecard examines 31 leading utilities drawn from across Europe's competitive arenas 4
Figure 2: Key Players dominate power generation capacity market share in the Wmed competitive arena 5
Figure 3: Key Players dominate power generation output market share in the Wmed and CEE competitive arenas 6
Figure 4: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share 7
Figure 5: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share 8
Figure 6: Delta achieves an overall ranking of 26, with a utility score of 26.8 21
Figure 7: Only on Scale does Delta score significantly below the Key Player average 22
Figure 8: Delta scores below the Key Player average on Performance, yet with a slightly higher level of risk 23
Figure 9: Delta is one of the smallest Key Player utilities, yet scores above average in terms of Growth 24
Figure 10: Delta has a relatively strong return on its fixed assets, but significantly lags the average in operating profit margin 26
Figure 11: Delta beats the Key Player average on return on fixed assets 27
Figure 12: In return on investment, Delta outperforms the Key Player average and several top ten utilities 28
Figure 13: In Scale, Delta scores worse in net income and revenue metrics, ranking 29 and 30, respectively 30
Figure 14: In terms of generation capacity, Delta ranks 28 with 3.3 GW 31
Figure 15: Delta is a power-focused utility, with power supply volume 79% that of gas supply volume 32
Figure 16: Delta has approximately 0.1% of Key Player power customers 33
Figure 17: At 19 TWh, Delta ranks 23 in terms of power volume 34
Figure 18: Delta has a gas supply volume market share of 0.2% 35
Figure 19: Delta ranks 19 in terms of gas supply volume 36
Figure 20: Delta ranks 30 and 29 terms of revenue and net income, respectively 37
Figure 21: Delta's growth in gas and power supply volume is in the top ten of all Key Players 39
Figure 22: As an unlisted Company, Delta does not have a price earnings ratio 40
Figure 23: From 2001 to 2005, on average Delta's profits decreased -10.1% annually, even though its revenues grew 4.7% annually 41
Figure 24: From 2004-2005, Delta's operating cash flow declined -45.8%, despite significant power and gas supply volume growth 42
Figure 25: Delta's Exposure scores vary widely across financial and operational metrics 44
Figure 26: Delta has a lower gas NTR than the Key Player average 45
Figure 27: Delta's power supply volume is almost balanced by its generation output, leading to a power NTR rank of 11 46
Figure 28: Amongst Key Players Delta is the least leveraged, with a debt to equity ratio of 1.7% 47
Figure 29: On debt leverage, Delta ranks 1 among all Key Players 48
Figure 30: Delta's operating cash flow has dropped sharply, despite a 34.3% growth in energy supply volume 49
Figure 31: Delta has a Key Player power customer market share of less than one percent 51
Figure 32: Delta has a Key Player gas customer market share of less than one percent 52