BKW Raises Outlook for 2023

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Shares in BKW saw an increase on Tuesday as the company adjusted its outlook for 2023 following a robust first-half performance.

At 0843 GMT, shares were up 2.6% at CHF155.20, experiencing an earlier rise of over 4% during the session.

The German energy and infrastructure company now predicts earnings before interest and taxes to range between CHF600 million and CHF650 million ($678.5 million and $735 million), surpassing the previous forecast of CHF550 million and CHF600 million.

BKW reported a significant surge in net profit for the first half, reaching CHF326.6 million compared to CHF58.7 million in the same period last year. Revenue also grew by 6% to CHF2.40 billion, with all three business sectors – energy, grid, and services – demonstrating growth. The company’s EBIT jumped to CHF424.5 million from CHF329.6 million.

Based on historical data, Baader Helvea analyst Andreas von Arx anticipates that the second-half EBIT will amount to slightly above 50% of the full-year outcome. This projection suggests a potential result of approximately CHF850 million for this year.

Baader Helvea raised concerns about potential regulations in the utilities sector due to the substantial profits generated in Switzerland. It remains uncertain whether BKW can sustain this level of profitability over the long term.

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