Copied to Clipboard

Download the annual report
Scroll to discover
Messages from the CEO

Annual Report Encevo S.A.


from the CEO

  • The group’s performance in 2022
  • Major achievements
  • Challenges arising in the future

The group’s
performance in 2022

The structure of our group, with its diversity in the different pillars gives us some resilience to external shocks.

Claude Seywert

CEO Encevo S.A.

Chairman of the Executive Committee

Major achievements

As a group, we also worked on a long-term solution to this energy crisis and the climate crisis in general.

Claude Seywert

CEO Encevo S.A.

Chairman of the Executive Committee

Challenges arising in the future

We as Encevo Group stand ready to do our job in the Greater Region for bringing this energy transition forward.

Claude Seywert

CEO Encevo S.A.

Chairman of the Executive Committee


Chairman’s message

A year of multiple crises

« A successful energy transition is the best hedge against crisis in the long term. »

Marco Hoffmann

Chairman of the Board of Directors

The year 2022 once again posed major challenges for the Encevo Group. Early 2022 saw the Russian Federation’s unjustified war of aggression against Ukraine. Issues that had long since disappeared in the energy sector were suddenly on the agenda again, with energy scarcity and energy supply adding to the question of how to deal with high energy prices. The Encevo Group took responsibility on several levels.

A decisive element in overcoming this crisis-hit year was good cooperation – both within the group in our various teams, but also with authorities, grid operators and energy suppliers.

It is hard to think of a time when so many regulations and laws were passed and had to be implemented in such a short time. Not only was national legislation enacted, such as the gas price cap, but so too were European regulations, for example on specifications for gas storage levels, on liaising with other transmission system operators within the framework of ENTSOE and ENTSOG, and on the regular stocktake with Belgium in the gas sector. Creos’s role remained particularly important in the area of security of supply and especially in risk preparedness management.

The group was hit by a cyberattack in 2022, which exacerbated the impact of the crisis but thankfully did not affect any critical data. It led to an even greater workload and meant customer enquiries could not be answered adequately for a while, which was made all the worse by the fact that many people had lots of questions about energy.

Nevertheless, we made it through the year well, not least thanks to the commitment and dedication of our people, for which I am very grateful. Their hard work allowed the group to make progress on important issues beyond crisis management, namely the ever-present climate crisis.

We forged ahead with key projects in this area, like the 380 project, which involves replacing and upgrading the existing electricity interconnector from Germanyto Bofferdange and Bertrange – a quantum leap for securing energy supply and advancing the energy transition in Luxembourg. Other examples include the new PV and wind power plants that were commissioned or entered the planning phase.

Enovos also ventured into new innovative projects, such as agrivoltaics, while increasing its renewable footprint in the Greater Region.

To drive the energy turnaround at all levels, we also built up new competences in Technical Services. New technical service companies joined the group, including for the first time in Germany. Creos Deutschland continued with its partnership project to use parts of existing gas grids to transport and distribute hydrogen between Lorraine and Saarland. All these examples once again illustrate the group’s commitment to furthering the energy transition across the Greater Region.

Despite the difficult environment, in 2022 the group was able to drive forward the energy transition, keep offering customers good services and products and also close the year on a good financial footing – clear evidence of the stability of our broad structure. Our robust business model lets us withstand crises and gives us the strength to continue making the necessary investments for driving forward the energy transition.

A successful energy transition is the best hedge against crisis in the long term.
I am confident that we will hit further milestones in this direction in 2023, in the hope that we will soon be able to leave crises like the current ones behind us.

Go to Management views

Marc Schroeder

Member of the
Executive Committee

Encevo S.A.

CFO Encevo S.A.

Mario Grotz

Chairman and Managing Director

Creos Luxembourg S.A.

Erik von Scholz

CEO Enovos Luxembourg S.A.

Member of the
Executive Committee Encevo S.A.

Claude Seywert

Member of the
Executive Committee

Encevo S.A.

CEO Encevo S.A.

Management views

  • Financials - Marc Schroeder
  • Grids - Mario Grotz
  • Supply & Renewable Energies - Erik von Scholz
  • Technical Services - Claude Seywert

Financials - Marc Schroeder

2022: strong and resilient performance in a year marked by crisis

Marc Schroeder

Member of the
Executive Committee

Encevo S.A.

CFO Encevo S.A.

« The group will continue to focus on supporting its customers on their digital journey towards more efficient and sustainable energy consumption. »

Solid financial results against a backdrop of record volatility and price levels for power & gas and the resulting unprecedented market and credit risk exposure for the group.

While total sales volumes of power & gas dropped by 16% between 2021 and 2022 (solely due to lower gas sales), Group Turnover increased by EUR 907 million (+36%) from EUR 2,517 million in 2021 to EUR 3,424 million in 2022, driven by historically high energy prices.

Consequently, EBITDA/Turnover decreased from 9.5% in 2021 to 7.8% in 2022.

In absolute terms, however, the group’s operational result (EBITDA of EUR 268 million) has exceeded expectations and is EUR 30 million higher than in 2021.

This is despite unprecedented volatility and the price levels for gas, power and EUAs soaring to never-before-seen levels during summer 2022.

The improved EBITDA stems from a strong performance in Markets, Technical Services, Grids and Renewable Energies, driven by price effects.

In this very challenging environment, the group’s stringent market and credit risk management showed its resilience, supported by an excellent performance by the Energy Management & Trading teams.

Encevo’s overall investment activity reached a new record at EUR 272 million – EUR 4 million above 2021 – of which EUR 185 million was invested in Grids and EUR 55 million in Renewables.

No material impairments or impairment reversals have impacted the 2022 results.

The group’s net profit for the year 2022 stands at EUR 107 million – EUR 28 million higher than in 2021.

Robust operating cash flow and increased working capital in a challenging environment.

In 2022, the group generated sustained sufficient cash flows to finance its record investment activities.
Operating cash flow of EUR 282.4 million exceeded the 2021 amount by EUR 3.6 million, largely due to improved results.

Free cash flow of EUR -18 million decreased by EUR -15 million compared to 2021, driven by greater investments, higher working capital requirements and increased loans to participations.

Faced with increased liquidity requirements resulting from the very high volatility and energy price levels (including EUAs) driven by the Russia/ Ukraine war, the Encevo Group, with the support of its shareholders and banks, increased its RCF (Revolving Credit Facility) from EUR 200 million prior to the war to EUR 400 million in June 2022 and then to EUR 750 million in January 2023. As of 31st December 2022, the RCF was fully unutilised. Additionally, in December 2022 the Encevo Group signed and fully drew down a 180 M€ loan with a 6 year maturity with 3 banks guaranteed by the State of Luxembourg.

Net financial debt increased only slightly to EUR 511 million at the end of 2022, and gearing – the ratio of net financial debt to total equity – stayed essentially flat at 34%.

Capital and reserves further increased to EUR 1,507 million. This represents 38% of total assets, illustrating the group’s continued strong balance sheet.

Challenging outlook for 2023 due to the ongoing Russia/Ukraine war and its impact; investments still expected to rise from 2022 record levels.

Russia’s invasion of Ukraine in February 2022 and the ensuing war has significantly increased the risks related to the European energy sector and the European economy in general, with increased energy prices, higher overall inflation and rapidly rising interest rates.

This remains a continued source of uncertainty regarding the overall economic outlook as well as for market prices, counterparty risk and physical supply risk. Potential further regulatory/government intervention needs to be monitored.

The group will continue with its high levels of investment in power grid infrastructure. It will further intensify and accelerate its efforts in developing renewable projects in its core markets of Luxembourg, Germany, Belgium and the Netherlands, as well as in France.

In addition, the group will continue to focus on supporting its customers on their digital journey towards more efficient and sustainable energy consumption.

We will offer additional services and increased renewable generation capabilities while ensuring overall competitive sourcing in these very challenging conditions to minimise the impact of price increases on customers.

Given the insight gained from the first few months of 2023, and subject to a positive resolution of the uncertainties surrounding the Russia/Ukraine conflict, we expect to maintain our financial performance from previous years at operational level.

Grids - Mario Grotz

Crisis management and future planning

Mario Grotz

Chairman and Managing Director

Creos Luxembourg S.A.

« We need to increase and strengthen the capacity of our electricity grids. »

2022 brought a lot of challenges – not only the energy crisis but also a severe cyberattack. How did the company handle these challenges?

Against the backdrop of the energy crisis and the new geopolitical situation created by the war in Ukraine, Creos’s load-shedding plans were updated in close coordination with the Ministry of Energy. Although the risk of a shortage in Luxembourg this winter was no higher than in previous years, we remain cautious and prepared.

We also saw that the government’s appeal to citizens to reduce their energy consumption bore fruit.

Creos also launched the “StroumMonitor”, a graphical tool that shows the national load forecasts for the current day and the three following days. The aim is to minimise the generation of electricity from fossil fuels and make better use of renewable energy when it is available by encouraging individuals and industries to reduce their consumption during peak hours.

As for the cyberattack, it hit us at the most inopportune moment, in the middle of an energy crisis. Our IT teams’ immediate and effective response quickly stopped the intrusion. No third party – be it a customer, supplier or other stakeholder – suffered any damage and security of supply was guaranteed at all times.

Nevertheless, Creos maintained an ambitious investment strategy. What are the main points in this regard?

Most of our investments were devoted to reinforcing and extending our electricity network, but our investments in digitalisation also remained at a high level. Unfortunately prices of materials needed for both maintenance and investments, such as pipes, cables and transformers, have risen significantly.

The most important project for the future is of course the 380 kV project (“Project 380”), which is progressing on schedule.
We expect to receive the administrative approvals by the end of 2023 and to start work the following year.

Another major project is the national, centralised energy data IT platform, the aim of which is to collect all gas and electricity consumption and production data and make it available to the various market players, facilitating communication between them.

What are the next challenges for Creos?

The first is electricity. Demand for electricity will grow due to greater digitalisation, increasing electromobility and the decarbonisation of the heating/cooling of buildings. We need to increase and strengthen the capacity of our electricity grids and will need to add more intelligence to our electricity network.

The second is gas. We need to keep the natural gas network in good condition while reducing costs as much as possible. The use of natural gas, mainly for domestic heating, will gradually disappear as part of the decarbonisation process.

Lastly, hydrogen will play an important role in the coming years, especially in industry. We are taking part in studies on the subject in close cooperation with industrial customers and potential partners. We are also involved in the European Hydrogen Backbone (EHB), an initiative involving 31 European network operators.

Supply & Renewable Energies - Erik von Scholz

Moving forward in the face of crisis

Erik von Scholz

CEO Enovos Luxembourg S.A.

Member of the
Executive Committee Encevo S.A.

Encevo achieved more than 




in energy savings in 2022

Last year, we went from an energy price crisis to a tangible energy crisis. How did Enovos fare against this backdrop?

Over the course of 2022, conditions became extremely difficult overall. The energy price crisis became an energy crisis – you might even say an energy war. For months, we have been navigating significant crisis-related changes and immense risk. But despite this, our business model and risk management capabilities allowed us to keep the price of electricity stable throughout the year. Unfortunately, the same cannot be said for gas, which we had to adjust several times, but our efforts to partially absorb the short-term market price and consumption fluctuations have played a key role in helping our customers.

Yet the crisis has sped up other developments, such as energy efficiency and renewable energies.

We put in a lot of work into energy efficiency in 2022 and are seeing that customers are incredibly willing to do their bit – this is crucial as every bit of energy saved makes us more independent and helps bring prices down. Things are also looking good with renewables. Across the Greater Region we have laid the groundwork for renewable energy projects in France and continued to make good progress in Germany (especially with the Südeifel project), Belgium and the Netherlands. In Luxembourg, we have connected new PV plants while also preparing for more innovative projects, such as a pilot project in agrivoltaics. As for our wind farm projects with Soler (a joint venture with SEO), we were able to connect new plants to the grid in 2022 and upgrade others.
In terms of customers, we have made good progress with renewable PPAs, where our experience is starting to pay off.

So, crisis management was not the only thing Enovos did last year. What are the next challenges ahead?

The crisis – or rather the crises – took a lot out of us, but we handled them well. However, we will be stuck with high inflation and interest rates for a while, not to mention the changing weather conditions due to climate change (after a very dry summer, mild weather conditions in winter helped lower gas consumption and prices in Europe). In the short term, we must continue to manage the enormous volatility in our markets – and we absolutely have to get back to a good customer service level. Looking a little further ahead towards the medium term, our goal is to work with stakeholders and customers to do everything we can to ensure a competitive energy supply.

In the long term, we are faced with two crises – the energy crisis and climate change. And the principal weapons for tackling both are the same: saving energy and expanding renewables. These are at the forefront of my mind whenever I talk about a competitive energy supply – and whenever I talk about the climate in general. The crisis has boosted the acceptance of renewable energies and sped up the development of new projects. We want to be a driving force behind this change because that is our responsibility.

Technical Services - Claude Seywert

Growth picking up pace

Claude Seywert

Member of the
Executive Committee

Encevo S.A.

CEO Encevo S.A.

« When we took the decision to go behind the meter, we did so with the aim of advancing and speeding up the energy transition. »

What were the most important developments in Technical Services in 2022?

Overall, Technical Services had a great year 2022. The year started with our repositioning of diego as its own autonomous entity in Luxembourg. The new company posted great performance, both in e- mobility and PV.

Minusines, a cornerstone of our supply chain, has also played a key role in the overall progress with PV and e-mobility.

As for Paul Wagner et Fils, the company has established itself as one of the most important players in the country when it comes to installing PV systems. It has also broadened its scope with the acquisition of Arctic Cooling Systems and now additionally covers the cooling sector, where great emphasis is placed on the environment and energy efficiency with every cooling system.

Power Panels has continued to grow, too, posting record turnover with energy distribution systems for PV and e-mobility systems delivered both to Luxembourg and around the world.

Turning to Global Facilities its energy-monitoring system has helped customers reduce and optimise their energy consumption. Over the last year we have seen an even greater focus on energy efficiency and have expanded our energy consulting and audit services together with energieagence.

Another key development in 2022 was the acquisition of Wieland & Schulz, our first subsidiary in this business area in Germany.

We are very satisfied with how Technical Services operations are progressing in general.

In retrospect, does that mean the decision to enter this field was the right one?

Absolutely. When we took the decision to go behind the meter, we did so with the aim of advancing and speeding up the energy transition. The war in Ukraine – an unfortunately tragic trigger – has now cemented the need to get away from fossil fuels, and our Technical Services business is gearing up to deliver our energy transition projects even faster.

We are starting to see our strategy bear fruit, and it is becoming ever clearer that the services we are offering are very much in demand. As a group, we are able to offer more integrated solutions, for example in e-mobility and PV. We always keep in mind that the individual group companies are separate entities, each with their own distinct focus and each growing their operations with their respective business partners in their own markets. But the strategy of combining their individual strengths and competences is working – and we will continue on this path.

What challenges does this area hold in store?

In 2022, the business unit did a fantastic job, overcoming the supply chain challenges that were encountered particularly in the first half of the year. But the topic of inflation rose to prominence in the second half and will be increasingly concerning in 2023 – staff and material costs cannot simply be passed onto customers. We will also have to keep a closer eye on the overall economic situation since a slowdown in the construction sector in particular might impact our order intake. And finding the right people in terms of workforce remains a challenge.
Nevertheless we see plenty of opportunities in technical services, thanks to the speeding up of the energy transition – which has become a political priority and an absolute necessity.


Key figures

  • Figures at a glance
  • Financial figures

Figures at a glance

Comparison to 2021



+ 189 employees




+ 3.8%

installed capacity



+ 53%

training hours



- 3g

average CO2 emissions of our leasing fleet
(target 50g CO2)



+ 9%

Energy Sales Power




SAIDI (avg. duration
of interruptions
per year per customer served)



- 3.6%

Total renewable
energy production



- 31%

Energy Sales



- 2.49%

electric power transported



- 15%

of natural gas transported


  • Figures at a glance
  • Financial figures



Sales volume gas (TWh)



Sales volume electricity (TWh)



Sales (EUR millions)






Operating cash flow



Free cash flow



Net profit for the year



Total assets



Capital and reserves



Net financial debt(*)



as a % of capital and reserves (Gearing ratio)*



Capital expenditures



* including finance leasing obligations and net of cash and marketable securities


A key asset

2022 has been a challenging year, with an energy price crisis that turned into an energy crisis with the war in Ukraine. In this difficult context, it was of course important to handle the crisis and its consequences for price stability and security of supply. But 2022 was not only about crisis management and important achievements have been reached in the context of Encevo’s sustainability approach, notably in the field of energy efficiency and renewable energies. This is also important in the context of the climate crisis, that has not gone away and a sustainable energy transition is essential in this context.

Sustainability is a key asset for the Encevo Group, driving the success of its strategy and performance. It is a top priority for our leadership and all our people. Sustainability is firmly embedded in our strategy and our decisions every day.

As a group, we are aware that, we influence the lives, work and environment of people living around us. We are expected to behave as responsible members of our communities. Each of our decisions and actions must justify the confidence of our employees, customers, business partners, stakeholders and all those we interact with. 2022 has been no exception to this general approach.

This approach also puts us in a strong position to seize new opportunities that arise as the move towards a more sustainable economy continues. As mentioned, a sustainable energy transition is the foundation for Encevo’s business. Customers as well as employees, partners and financial investors are drawn to companies that demonstrate environmental, social and governance responsibility. Encevo being forward-thinking and sustainable can leverage all these qualities and aims to live up to these expectations, which have yet again been raised to include leadership in areas such as human rights and measuring sustainability risks.

Some notable sustainability achievements of 2022

Please refer to the annual report for details.

Privacy protection

If you want to watch this content, you must accept Marketing Cookies