Amprion presents solid figures for the first half of 2023 and first "Green Finance Investor Report"
The transmission system operator Amprion has published solid figures for the first half of 2023 and its first Green Finance Investor Report. The company thus increases transparency for its investors and underlines its ambitions to continue issuing sustainable finance instruments in the future.
Amprion has started successfully into the year 2023. The company achieved a solid result in the first half of the year and further realized its investments in the implementation of the energy transition in Germany.
Amprion reports revenues of around €2.9 billion for the first half of 2023, an increase of almost 90 percent compared to previous year’s period. This is due to the significant increase in costs for system services as a result of the tense situation on the energy markets. System services include all measures to stabilise the electricity grid. These costs are generally covered by regulation and are reimbursed to the transmission system operators through the grid fees. In order to keep grid fees stable despite the sharp rise in system service costs and thus relieve the burden on consumers, the German Federal Government has for the first time provided a federal subsidy to the transmission system operators for the year 2023.
As part of its IFRS accounting, Amprion also presents key financial figures on an adjusted basis in order to avoid significant distortions caused by regulatory matters and to achieve a more accrual-based presentation of the earnings situation. Adjusted EBITDA amounted to around €470 million, which corresponds to a decline of 6.4 percent compared to the first half of the previous year. The decline is due to the offsetting of revenues from congestion management, the amount of which depends on external factors, as well as increased material and personnel costs.
For the same reasons, the adjusted consolidated net income also recorded a decline of 7.6 percent to around €175 million compared to the first half of 2022. In addition, higher interest expenses due to the increased bond volume as well as lease accounting according to IFRS16 also impacted the adjusted consolidated net income.
Peter Rüth, CFO of Amprion: “Amprion has achieved solid results in the first half of 2023 despite the persistently challenging conditions. We are very well positioned for the second half of 2023 and are consistently pursuing our ambitious investment programme to enable the energy transition in Germany. A regulatory framework conducive to growth remains an essential precondition.”
The transformation of the energy system in Germany requires extensive grid expansion and upgrade. In the first half of the year, Amprion invested around €1.2 billion in its transmission grid. For the year as a whole, Amprion plans to invest around €2.8 billion, up from around €1.5 billion last year. The company plans to invest around €22 billion in the grid infrastructure by 2027.
Publication of the first Green Finance Investor Report
As a "frequent issuer", Amprion intends to raise the funds required for future investments on the capital market primarily through sustainable financial instruments. To increase transparency for its investors, Amprion publishes the first Green Finance Investor Report, which meets the reporting requirements of the Green Bond Principles (GBP) and is published annually in accordance with Amprion's Green Finance Framework.
The Green Finance Investor Report provides investors in Amprion's green bonds with comprehensive information on the appropriate use of the funds. The calculation and allocation of these funds as well as their impact were also externally audited by BDO AG Wirtschaftsprüfungsgesellschaft. Amprion applies a portfolio approach in the allocation of funds. This portfolio, which is updated annually, includes all projects classified as sustainable and amounts to around €3.4 billion as of 31 December 2022. Specifically, this portfolio is matched by €1.8 billion in funding, which have a significant positive impact on achieving Germany's climate goals in 2035.
The full version of the Green Finance Investor Report 2022 is available at the following link.
The tables for the unaudited IFRS half-year figures 2023 can be found at the following link.