Funding and investment strategy

With inflation falling in both Austria and the eurozone, the ECB has, since June 2024, lowered the deposit rate, which is now considered the key interest rate for the financial market, by 75 basis points to 3.25% in three interest rate steps. Further reductions or increases in interest rates depend on economic and inflation trends in the next few months.

In an environment as uncertain as today’s, the importance of adhering to the proven and robust financing and investment policy of Energie AG cannot be overstated.

Very good credit rating confirmed once again

In March 2024, S&P Global Ratings again confirmed the very good creditworthiness of Energie AG with an “A” rating (with a stable outlook). By this assessment, the rating agency acknowledges the company’s continuous efforts to further expand operational and financial performance on the basis of sustainable standards. The Energie AG Group has now had an investment grade rating for a quarter of a century and continues to occupy a top ranking position among European energy suppliers. Financing the energy transition with a view to developing a sustainable energy system will pose major economic challenges for the entire industry and beyond. Stable economic results and the continued upholding of a sound financial structure are essential for funding the investments needed to implement this process of transformation. This excellent rating is prerequisite to financing sustainable future investment projects at economically attractive market conditions with Austrian and international investors.

Sustainable and future-proof finances

Financial liabilities were reduced by EUR 27.9 million to EUR 610.6 million in the past fiscal year. The Group’s repayment profile is characterised by bullet loans with residual terms of up to 27 years. A significant refunding requirement exists in the new fiscal year as a result of the scheduled repayment of a EUR 300.0 million bond in March 2025.

As of 30 September 2024, the Energie AG Group had EUR 308.5 million (previous year: 230.7 million) in cash and cash equivalents. As of the reporting date, the Group also had EUR 145.1 million (previous year: EUR 258.7 million) in fixed term deposits and short-term investments. Because a large proportion of this strategic liquidity reserve is held in the form of cash or cash-equivalent instruments, the risk profile can be considered extremely conservative.

On the reporting date, in addition to these financial reserves, Energie AG had more than EUR 950.0 million in partly committed credit lines with Austrian and international banks which had not been utilised by the balance sheet date.

The sound liquidity reserves and the excellent credit rating guarantee the strong financial flexibility of the Energie AG Group in the long term.