There are arguably the biggest energy companies in the World, and these companies undoubtedly form the basis of the economies of many countries around the world. They are worth over a trillion dollars.
Energy production methods, especially in developed economies, are also under much scrutiny and criticism, making it one of the most controversial sectors in the world. A number of industries make up this region, including coal, the largest fossil fuel industry in the world, generating electricity, nuclear power, and renewable energy.
1. Enel – $89.95bn
As a result of the infrastructure and network activities in Latin America, the distribution business in Brazil, and the thermal generation activities in Italy, Enel’s 2019 revenues increased by 6.3%. Among the world’s largest energy companies, this is one of them.
This brought the company’s total renewable generation capacity to 42GW and was the first time it had exceeded its thermal generation capacity of 39GW. Because of trade tensions between the US and China and uncertain outcomes related to the Brexit negotiations, the company’s investments were impacted.
In November 2019, Enel presented its 2020-2022 strategic plan focused on decarbonization and electrification. Planned are increased renewable energy capacities and the gradual phaseout of conventional power generation assets. Because of its geographic distribution and solid financial structure, Enel is not expecting a significant impact from the COVID-19 outbreak. These factors will help to ensure continuity of operations.
2. Electricite de France – $79.86bn
Revenues at Electricité de France (EDF) increased by 4%. Energy is generated and distributed in the UK and Italy, together with renewable energy. Wind and solar energy investments have accelerated at the company in 2019.
The Taishan nuclear power plant and the Sinop dam were both commissioned in 2019.
The company implemented three major projects during the year, including a solar plan that included the acquisition of 2,000ha of land, a storage development plan that included Pivot Power’s acquisition in the UK, and a marketing plan for electric mobility in four of its target countries. As part of its electric mobility plan, the company also acquired Pod Point, the UK charging station operator.
Due to the COVID-19 pandemic, EDF has had to delay the construction of its new projects since the end of March 2020. Despite the COVID-19 pandemic, the company now has sufficient liquidity to deal with its impact, according to its latest quarterly report. With a new target of 300 TWh for 2020, and 330 TWh and 360 TWh for 2021 and 2022, EDF plans to have a nuclear output of 330 TWh and 360 TWh in those years.
3. Engie – $67.3bn
With its 5.4% year-on-year revenue increase in 2019, Engie benefited from the nuclear and renewable sectors. As a result of higher production availability in Belgium, the company’s nuclear division performed well.
Additionally, 3GW of renewable capacity has been installed in Brazil, which added to the renewable division’s revenues. Also, Engie will keep its operational expenses strict and make sure it invests in business development activities strategically. This is one of the biggest energy companies in the World.
4. E.ON – $46.45bn
The takeover of Innogy Group by E.ON in September 2019 increased revenues by 38% year over year. Additionally, all renewable energy assets transferred to RWE. Its segments for customer solutions and energy networks were strengthened with this acquisition.
In 2020, E.ON will invest €4.5bn ($5.03bn) more selectively and systematically in light of the COVID-19 pandemic. Investing in local and regional energy networks will be its main focus.
Furthermore, the company will focus on combating climate change by upgrading its infrastructure with climate-friendly features worth €500m ($559.93m). In order to achieve climate neutrality by 2050, Europe is investing in energy efficiency. This is one of the biggest energy companies in the World.
5. Iberdrola – $40.81bn
Network and generation activities drove Iberdrola’s revenue increase of 3.9% in 2019. Capex will increase by 40% from the $2.14bn it expended three years ago to €10bn ($11.19bn) in 2020. A high-single-digit net profit for the year will result from the investment of up to 4GW in new installed capacity.
In order to mitigate the impact of the COVID-19 pandemic on its suppliers, Iberdrola has implemented several measures. They did so by accelerating the purchase of €3.8bn ($4.2bn) and signing contracts. The company does not expect the pandemic to have a significant impact on its under-construction projects either. New renewable energy capacity will commission in 2020 at a rate of 9GW.
6. Exelon Corp – $34.44bn
This decline caused by Exelon’s closing of the Three Mile Island nuclear facility in September 2019 and the early retirement and sale of the Oyster Creek nuclear plant in September 2018.
Nuclear energy generated the highest capacity factor for the company in 2017. A $5.5 billion investment made by Exelon to modernize its electric grid. To provide reliable services to its customers, the company plans to invest an additional $6.5bn.
7. General Electric – $33.96bn
The total revenue for General Electric (GE) in 2019 was $95.2 billion, a decrease of 2% over the prior year. $33.96 billion of total revenue was generated by the renewable energy and power industries. 2019 saw an increase of 7.8% in renewable energy segment revenues. Unit sales and service revenues fell 15.9% year over year in the power segment. A record number of onshore wind turbines were sold and 5GW of offshore wind turbine commitments secured for the HaliadeTM-X.
Several major projects completed during the year, including the 1.32GW China Power Hub Generation power plant in Pakistan, the Birdsboro power plant in the US, unit six of the Opole power plant in Poland, and the Ishikariwan-Shinko power plant in Japan. This is one of the biggest energy companies in the World.
In addition to the aviation segment, the power and renewable segments of the company moderately affected by the COVID-19 pandemic. GE has withdrawn its 2020 guidance due to the uncertainty surrounding the pandemic. Despite supply chain constraints, project site execution continues as orders and deliveries remain stable.
8. The Kansai Electric Power Co – $29.79bn
Annual revenues of Kansai Electric Power Co. (KEPCO) decreased by 4.9%. As part of its overseas investment plans, the company acquired 17.67% of Electricity Northwest in the UK.
A 100%-owned subsidiary company also received the power transmission and distribution business from KEPCO. According to the Japanese Electricity Business Act, Kansai Transmission and Distribution now named.
COVID-19 will not significantly impact KEPCO’s forecast for 2020 as of yet.
9. Chubu Electric Power Co – $27.34bn
Due to fuel cost adjustment charges, Chubu Electric Power Company’s (Chubu) revenues increased by 1% year-on-year in 2019. Sales and services revenues grew by 3.2%. Additionally, revenues from the power network services segment increased by 0.6%.
As a result of the uncertainty surrounding COVID-19, Chubu hasn’t released any earnings forecasts for the 2020 fiscal year. In addition, the company plans to invest JPY300 billion ($2.78 billion) over the next five years in renewable energy and overseas businesses.
Chubu will also develop 2GW of renewable energy sources by 2030. Additionally, transmission, distribution, and sales businesses will separate into companies.
10. Southern Company – $21.42bn
South Carolina Company made significant progress on Vogtle units three and four in 2019. Due to the sale of Gulf Power and other assets, its operating revenues declined by 8.8% year-over-year. The company remained focused on reducing non-renewable assets in 2019. Besides Skookumchuck, the 200MW Reading and 136MW Skookumchuck wind farms were also under construction.
In the first half of 2020, Southern Company’s operating revenues declined by 8.3% to $9.64bn. COVID-19 caused a decline in demand, contributing to the reduced sales.