BKW AG
Swiss precision at a reasonable price
It’s difficult to focus on stock picking with everything that is going on these days, but here is a European company that is not affected at all by the trade wars.
BKW ($BKW.SW) is a CHF 7.8bn Swiss company that plans, builds and operates infrastructure to produce and supply energy to businesses, households and the public sector, and also offers digital business models for renewable energies (smart energy procurement).
The BKW group comprises everything from engineering consultancy and planning for energy, infrastructure and environmental projects to integrated offers in the field of building technology and the construction, servicing and maintenance of energy, telecommunications, transport and water networks.
“BKW is helping to shape the future and supports customers in tackling the challenges arising from climate change, digitalisation and urbanisation. We develop trailblazing solutions in the fields of infrastructure, buildings and energy and ensure a balance between prosperity and the environment.”
Founded in 1898 and headquartered in Bern, BKW employs more than 12,000 people across a network of 140 companies in Switzerland and Europe: the group is 52.5% owned by the Canton of Bern, with a further 10% owned by Groupe E, another Swiss-based company that offers sustainable energy solutions.
Business Model
BKW operates across 5 core competencies divided into three business segments:
1. Energy Solutions (45% of revenues,1 75% of operating profits, 27% operating margin) builds, operates, and maintains BKW’s portfolio of power plants (hydroelectric, nuclear, fossil-fuel, and renewable sources) in Switzerland and abroad. It also includes the sale of energy in Switzerland, trading in electricity, certificates and raw materials as well as wind, solar and smart energy services (heat and electromobility).
BKW produces electricity from a range of energy sources, but already by 2023 75% of the installed capacity of the production park was renewable. Hydropower represents the majority of installed capacity (50%), followed by wind (26%): BKW has been operating in the wind energy sector since 1992 and it currently operates 27 wind farms in Switzerland (including the largest wind farm in the country, JUVENT in the Bernese Jura), Germany, France, Italy, Sweden and Norway.
