Press release

First half year results Stedin Group: strengthened financial position, increased investment in the energy transition

Rotterdam, 13 August 2019 – In the first half of 2019, Stedin Group posted as expected an operating profit of €88 million (2018: €121 million). Stedin Group is investing heavily in today’s and tomorrow's energy supply: €306 million in the first half of 2019 (2018: €284 million). Stedin used the proceeds of the sale of Joulz to redeem debt immediately and it also strengthened the balance sheet position.

Read the half year report

Danny Benima, Stedin Group CFO: “We have strengthened our balance sheet position with the sale of Joulz. This is contributing to Stedin Group’s financial health and is necessary for continued investment in future-proof infrastructure in a changing energy world. Efficiency is also receiving our attention to ensure that our services remain affordable in future.”

Sustainable operations

Stedin Group sold Joulz to a British company, 3i Infrastructure, for €310 million during the first half of 2019. The activities of Joulz Infradiensten and Joulz Meetbedrijf were no longer in line with the strategy of Stedin Group. The Joulz unit with activities unrelated to natural gas and electricity is remaining with Stedin Group and will continue under the NetVerder name. NetVerder is assisting the energy transition by developing, constructing and maintaining energy infrastructure, including steam, biogas and heating.

DNWG in Zeeland is being more closely integrated into Stedin Group to achieve greater synergy gains. Detailed planning for this was developed during the first half of the year. From 1 January 2022, DNWG and Stedin will form a single organisation with combined head-office services and undertake grid management activities under one   name. Following its annual review, on 31 July 2019 Standard & Poor’s (S&P) confirmed Stedin’s credit rating, which remains at A- with a stable outlook in the long term and at A-2 in the short term.

Better grid management

Raising customer satisfaction received much attention during the first half of the year. The focus was on improving service when providing and installing smart meters. Customers are now better able to plan appointments online, and communications during the installation have been improved. This has been reflected in customer satisfaction. Overall, 71% of customers gave Stedin Group a rating of 8 out of 10 or better in the first half year. This represents an improvement of 3 percentage points compared with last year.

On 27 January 2019, there was an explosion in Jan van der Heijdenstraat in The Hague which injured ten people and damaged three houses beyond repair. The investigation by the Public Prosecution Service and the State Supervision of Mines (SSM) showed that there had been a crack in the grey cast-iron gas main in the street. The reason for the crack has not been identified with certainty. The Public Prosecution Service stated that no unjustifiable matters have been identified. SSM concluded that Stedin has done everything it could to prevent this incident. SSM will hold meetings with all grid managers in the near future on accelerating the replacement of grey cast-iron gas mains. As a result, Stedin Group’s capital expenditure will increase.

Accelerating the energy transition

Proposals for the Climate Agreement were recently presented. Since the increase in sustainable energy generation is already affecting the energy grid, grid managers incorporated measures in the Agreement in order to be able to anticipate developments quickly. Grid managers want to reinforce the electricity grid in good time and make smarter use of the existing grid. Stedin also has high expectations for the arrangements on a neighbourhood-based approach in built-up areas as this enhances the manageability and predictability of the work.

Stedin Group is examining alternative methods of heating. Stedin is running a demonstration project to heat homes in the Rozenburg area of Rotterdam entirely with hydrogen which is transported through existing gas pipelines to a boiler-room of a nearby block of flats. The hydrogen boilers are in operation and are heating some of the flats. This is a first, since homes in the Netherlands have never before been heated with high-efficiency boilers using pure hydrogen.

About Stedin Group

Working together towards a world full of new energy. Stedin Group’s 4,300 employees work towards this goal every day. We believe it is our responsibility to ensure that all our customers can have sustainable energy where they live, work and do business. As Stedin Group, we are making the energy system more sustainable while keeping it robust and affordable. Grid operators Stedin (Zuid-Holland and Utrecht) and Enduris (Zeeland) and infrastructure specialist DNWG Infra work together within Stedin Group to achieve this.

Back to overview