German Gasag Thrives on Domestic Demand

German utility Gasag is managing the Covid-19 crisis as it has fewer industrial customers and the business is focusing on network operation and sales, it said reporting its positive trading results April 29. "Nevertheless, Gasag also expects risks in the medium term, which is why, for example, developments in energy trading are also being monitored very closely," it said. 

Pre-tax profit (Ebit) adjusted for significant one-off effects grew in 2019 €7 ($7.5)mn to a total of €112mn. Unadjusted, the result fell from about €73mn to €64mn owing to warmer weather. Revenue was up 5% at €1.3bn in 2019, with sales in the power sector now accounting for a fifth of total sales, and were up 26% at 1.6bn kWh. Demand for green electricity is strong, with customers up 15%. Gas sales remained at the previous year's level at 25.2bn kWh.

Its private and commercial customers grew to around 800,000 last year. “The fact that we continue to grow in our home markets of Berlin and Brandenburg shows the acceptance of our strong brands," it said. These include Energie Mark Brandenburg (EMB), SpreeGas, Stadtwerke Forst and Gasag Solution Plus.

Gasag generated a total 243mn kWh of renewable energy, from green electricity and biogas, up from 235mn kWh in 2018.

The company has upped its stake in utility EMB to 98%, buying shares from Verbundnetz Gas and it is planning to invest another €450mn in the next three years in infrastructure, energy services and renewables. 

Gasag is also involved in various hydrogen projects, for example a research project in the Berlin natural gas storage facility, a field test for hydrogen production in one's own home or a power-to-gas project in Ketzin.