The South Funen energy group SEF Energi has had a bad 2022. The company has thus lost 251 million. DKK on fixed-price agreements and wind turbine activities in Germany. The company states this in a statement.
SEF Energi has lost 60 million. DKK on a group of electricity and gas customers who have had fixed-price agreements.
- We have a customer group that is currently costing us money, and although we would be able to terminate the contracts, we will not do so. Our customers must be able to trust us. They must be able to trust that when they have entered into an agreement with us, we will not run away from it, even if we lose a lot of money on it. Then we must do everything in our power to find earnings elsewhere, says Customer and Market Director at SEF Energi Claus Holm Andersen.
In order to be able to keep our hands under its fixed price agreements, SEF investigated the possibilities for other earnings that could offset the loss. Here, the company tried to secure a fixed income by creating a price hedge on the group's wind business, which consists of 19 wind turbines in Germany. However, this turned out not to be a good idea.
With the high energy prices Europe has seen for a large part of 2022, it may sound paradoxical to lose money on its wind business, but it places high demands on guarantees for hedging transactions. The guarantees became so high that SEF had to buy back the hedged electricity volumes at very high prices and thus realize a large loss of DKK 191 million, the company informs.
- The energy crisis turned everything upside down on August 26th, sending us, and many other energy companies, into uncharted waters. Electricity prices rose sharply that day because Russia shut off the gas, and this meant that liquidity increased accordingly. We withdrew from the agreements because it could ultimately end up being a threat to our existence, says CEO of SEF A/S, Anders Banke.
The money is coming back in
Although 2022 was a really bad year for wind turbines, SEF does not believe they are a bad investment. The same 19 wind turbines in Germany are expected by SEF to make money in 2023, and through that earnings, the company expects to make up some of the losses if Germany does not impose a price cap on the sale of electricity.
- It will not become more expensive to be a customer of SEF because we will come out of 2022 with a negative result. We will not earn more on either electricity, gas or heat pumps. So customers should not worry about that. It is a loss in the short term, but we will make up much of it on the wind power that we sell in Germany, says Anders Banke.
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