29.11.2018

Interim Statement: Q3 2018

On Friday 30 November, the Elia Group published its interim statement for Q3 2018.

Interim Statement: Q3 2018

Highlights:

  • Elia successfully completes long-term financing for the acquisition of an additional 20% stake in Eurogrid
  • Elia welcomes German Bank KfW as new shareholder in Eurogrid
  • Elia, SettleMint and Actility launch one of Europe's first blockchain pilot projects in the energy sector
  • 50Hertz puts CompactLine into operation
  • Financial outlook for 2018 slightly raised

Elia successfully completes long-term financing for the acquisition of an additional 20% stake in Eurogrid

In August, Elia successfully launched a EUR 300 million 10-year senior bond and a EUR 700 million perpetual hybrid bond to refinance a bridge loan for the acquisition of an additional 20% stake in Eurogrid International. Owing to strong investor interest, with book-building completed in just a few hours, the bonds were significantly oversubscribed, leading to an annual coupon of 1.50% for the senior bond and a coupon of 2.75% for the hybrid bond1.

Elia welcomes German Bank KfW as new shareholder in Eurogrid

In August, Elia completed the transactions linked to the acquisition of the remaining 20% stake in Eurogrid International held by IFM Global Infrastructure Fund and the immediate sale of this stake to the German state-owned bank Kreditanstalt fu¨r Wiederaufbau (KfW). The conclusion of these transactions saw KfW replacing IFM as the second shareholder in Eurogrid. The operation will foster Belgian-German cooperation regarding critical grid infrastructure.

Elia, SettleMint and Actility launch one of Europe's first blockchain pilot projects in the energy sector

Elia has launched a pilot project to analyse potential applications of blockchain technology in the energy sector. The aim is to confirm blockchain's suitability for automating a number of processes related to activating flexible reserves and develop a decentralised flexibility management solution.

The increase in renewable energy generation is making it increasingly difficult for transmission system operators to guarantee that generation and consumption are balanced at all times. Power derived from renewables fluctuates constantly, so flexible reserves that can be activated swiftly (like batteries, demand management via heat pumps, etc.) are needed to ensure a steady balance. Elia is exploring the opportunities offered by blockchain technology as a payment system to address the business side of such complex, rapid transactions. The pilot project, conducted together with SettleMint and Actility, will last three months.

50Hertz puts CompactLine into Operation

After 11 months of construction, the CompactLine is now transmitting electricity. The CompactLine is a newly designed system consisting of masts and rope suspensions that is far more compact than a conventional extra-high-voltage overhead line. In 2013, a research consortium led by 50Hertz started developing the CompactLine, which has since been implemented as a pilot line in Jessen, Saxony-Anhalt, on behalf of 50Hertz over a length of approximately 2 km. With a route width of 55 m and a mast height of 32 m, the CompactLine fits better into the landscape than conventional overhead lines, without compromising key functionalities.

Financial outlook for 2018 slightly raised

In Belgium, the implementation of our investment plan is progressing well, so we retain a positive outlook for our 2018 results, anticipating a regulated return slightly above that of 2017 assuming a stable trend in the Belgian 10-year OLO. Strategic interconnection projects like Brabo, ALEGrO and Nemo remain on track, with investments in Belgium expected to total around EUR 630 million in 2018 as a whole. Positive results are also forecasted in Germany, and we remain confident about our ability to deliver a return slightly higher than the targeted 10-12% range. The realisation of the investment programme, which is always prone to a certain level of external risk, is progressing well with investments expected to total around EUR 470 million in 2018.

Financial calendar

Publication of 2018 annual results  22 February 2019
Publication of 2018 Annual Report early April 2019
General Meeting of Shareholders 2018 14 May 2019

 

For further Information visit our Financial publication section.

Interim Statement Q3 2018 NL

Interim Statement Q3 2018 FR

Interim Statement Q3 2018 EN