European Utilities Key Player Profiles: Eneco

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS 2
European Utilities Key Player Profile: Eneco 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
Eneco scores 27.9/100 on Datamonitor's European Utility Scorecard and ranks 25 out of the 31 Key Players covered 14
Eneco ranks in the bottom half of Key Player utilities on three of the four Scorecard pillars 16
Eneco achieves an overall ranking of 25, with a utility score of 27.9 21
Only on the Growth pillar does Eneco score the Key Player average 22
Eneco performs below the Key Player average and most top ten utilities, yet it has a slightly higher than average level of risk 23
Eneco lags the Key Player average in Scale, but is roughly average in terms of Growth 24
On four of the five Performance metrics Eneco scores below the Key Player average, for an overall ranking of 20 on this pillar 25
Eneco's overall financial Performance score of 9.8 underperforms the Key Player average of 10.9 26
Eneco mirrors the Key Player average in operating profit margin, but underperforms on return on sales 27
Eneco scores well below average on return on energy volume 28
Eneco is a middle-ranked utility on gas supply volume, but ranks 27 overall on the Scale pillar 29
Eneco trails the average score on each Scale metric, and ranks below average on all but gas supply volume 30
In generation capacity, Eneco ranks 25 with 0.8 GW 31
Though Eneco is an integrated utility, its gas supply volume exceeds power supply volume by almost three to one 32
Eneco has a 3.5% share of Key Player power customers 33
Eneco ranks 21 in terms of power supply volume 34
Eneco's share of the gas market is negligible, with less than one percent of Key Player gas customers 35
Eneco's market share of EU25 gas supply volume is less than one percent 36
Eneco ranks 26 in revenue and 24 in net income, respectively 37
Eneco ranks 6 in revenue growth, yet lags on other metrics for an overall Growth rank of 13 38
Eneco falls well below the Key Player average on growth in operating cash flow and profits 39
Eneco is not a listed company, and so has no price earnings ratio 40
From 2001-2005, Eneco's average annual profit growth (8.4%) kept pace with revenue growth of 10.5% 41
Despite an increase in power supply volume of 9.2% from 2004-2005, Eneco's operating cash flow declined -3.6% 42
Eneco has a high power NTR, pulling its Exposure ranking down to 20 out of 31 43
Eneco has lower Exposure rankings on operational than financial metrics 44
Eneco has a short power and gas NTR of -74.9% and -100%, respectively 45
Eneco's power supply volume obligations exceed its generation output, leading to a power NTR of 16,500 GW 46
Eneco's is comparatively lightly leveraged, with a debt to equity ratio of 39.8% 47
Eneco ranks 9 of the 31 Key Players in terms of debt leverage 48
Though Eneco's energy supply volume has grown 2.2%, operating cash flow has declined -3.6% 49
Eneco power and gas supply volumes are sold in the Netherlands 50
Gas-fired plants are Eneco's main generation capacity type 51
Eneco has a 3.5% share of Key Player power customers 52
Eneco's share of the gas market is negligible, with less than one percent of Key Player gas customers 53
APPENDIX 54
Databook 54
Definitions 73
Datamonitor Consulting 73
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: Eneco scores 27.9/100 on Datamonitor's European Utility Scorecard and ranks 25 out of the 31 Key Players covered 15
Table 7: Eneco scores 9.8/25 on the Performance pillar, and ranks 20 out of 31 on this measurement 17
Table 8: Eneco scores 0.9/25 on the Scale pillar, and ranks 27 out of 31 on this measurement 18
Table 9: Eneco scores 8.9/25 on the Growth pillar, and ranks 13 out of 31 on this measurement 19
Table 10: Eneco scores 8.3/25 on the Exposure pillar, and ranks 20 out of 31 on this measurement 20
Table 11: On four of the five Performance metrics Eneco scores below the Key Player average, for an overall ranking of 20 on this pillar 25
Table 12: Eneco is a middle-ranked utility on gas supply volume, but ranks 27 overall on the Scale pillar 29
Table 13: Eneco ranks 6 in revenue growth, yet lags on other metrics for an overall Growth rank of 13 38
Table 14: Eneco has a high power NTR, pulling its Exposure ranking down to 20 out of 31 43
Table 15: Return on fixed assets 54
Table 16: Return on sales 55
Table 17: Operating profit margin 56
Table 18: Return on energy volume 57
Table 19: Return on investment 58
Table 20: Generation Capacity / EU25 market total 59
Table 21: Power Supply Volume / EU25 market total 60
Table 22: Gas Supply Volume / EU25 market total 61
Table 23: Net income / Net income of 94 leading utilities 62
Table 24: Revenue / Revenue of 94 leading utilities 63
Table 25: Revenue growth, 2001-2005 CAGR 64
Table 26: Profit growth, 2001-2005 CAGR 65
Table 27: Growth in operating cash flow, 2004 to 2005 66
Table 28: Gas supply volume growth, 2004-2005 67
Table 29: Growth in power supply volume, 2004 to 2005 68
Table 30: Power NTR / Power supply volume 69
Table 31: Gas NTR / Gas supply volume 70
Table 32: Debt leverage 71
Table 33: Growth in operational cash flow - Growth in energy volume 72
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: Eneco achieves an overall ranking of 25, with a utility score of 27.9 21
Figure 7: Only on the Growth pillar does Eneco score the Key Player average 22
Figure 8: Eneco performs below the Key Player average and most top ten utilities, yet it has a slightly higher than average level of risk 23
Figure 9: Eneco lags the Key Player average in Scale, but is roughly average in terms of Growth 24
Figure 10: Eneco's overall financial Performance score of 9.8 underperforms the Key Player average of 10.9 26
Figure 11: Eneco mirrors the Key Player average in operating profit margin, but underperforms on return on sales 27
Figure 12: Eneco scores well below average on return on energy volume 28
Figure 13: Eneco trails the average score on each Scale metric, and ranks below average on all but gas supply volume 30
Figure 14: In generation capacity, Eneco ranks 25 with 0.8 GW 31
Figure 15: Though Eneco is an integrated utility, its gas supply volume exceeds power supply volume by almost three to one 32
Figure 16: Eneco has a 3.5% share of Key Player power customers 33
Figure 17: Eneco ranks 21 in terms of power supply volume 34
Figure 18: Eneco's share of the gas market is negligible, with less than one percent of Key Player gas customers 35
Figure 19: Eneco's market share of EU25 gas supply volume is less than one percent 36
Figure 20: Eneco ranks 26 in revenue and 24 in net income, respectively 37
Figure 21: Eneco falls well below the Key Player average on growth in operating cash flow and profits 39
Figure 22: Eneco is not a listed company, and so has no price earnings ratio 40
Figure 23: From 2001-2005, Eneco's average annual profit growth (8.4%) kept pace with revenue growth of 10.5% 41
Figure 24: Despite an increase in power supply volume of 9.2% from 2004-2005, Eneco's operating cash flow declined -3.6% 42
Figure 25: Eneco has lower Exposure rankings on operational than financial metrics 44
Figure 26: Eneco has a short power and gas NTR of -74.9% and -100%, respectively 45
Figure 27: Eneco's power supply volume obligations exceed its generation output, leading to a power NTR of 16,500 GW 46
Figure 28: Eneco's is comparatively lightly leveraged, with a debt to equity ratio of 39.8% 47
Figure 29: Eneco ranks 9 of the 31 Key Players in terms of debt leverage 48
Figure 30: Though Eneco's energy supply volume has grown 2.2%, operating cash flow has declined -3.6% 49
Figure 31: Gas-fired plants are Eneco's main generation capacity type 51
Figure 32: Eneco has a 3.5% share of Key Player power customers 52
Figure 33: Eneco's share of the gas market is negligible, with less than one percent of Key Player gas customers 53