The energy company ALTEO achieved outstanding results in 2023, as a proof its strategy was updated at the beginning of 2022 and its implementation are successful and effective, where environmental and social sustainability plays a key role in addition to business considerations, the company has announced on the website of the Budapest Stock Exchange.
The energy market in 2023 was characterized by consolidating prices, which are still significantly above the levels seen before the price increase at the end of 2021. Thanks to its structure, its strategy based on sustainability and renewable energy production, its diversified portfolio and its outstanding team of professionals, ALTEO intends to continue to exploit the maximum of the opportunities offered by the market in the period ahead.
Possibly higher energy price stabilization has a positive impact on ALTEO’s long-term strategy, highlighting that energy market opportunities starting in 2022 and continuing in 2023 are unlikely to be persist in the long term. ALTEO’s current profitability significantly exceeds the upper band of the median EBITDA range presented at the beginning of 2022.
Consolidated EBITDA Amounted to HUF 19.6 billion, down only slightly compared to last year, despite energy market opportunities gradually declining since 2022, a year that ended with exceptionally high earnings. Considering that energy prices in 2023 have shown a sharp decrease during the year, this year’s result may be seen as an outstanding performance. The Heat and Electricity Generation and Energy Retail segments performed well in a declining price environment, while the Waste Management segment delivered strong growth in line with expectations.
The consolidated net profit was HUF 12.9 billion, which is identical with the previous year’s result. Lower EBITDA is compensated by the interest earned in the outstanding interest rate environment.
ALTEO’s management considers the ramp-up of the Renewable Production Management business, launched at the end of 2020, to be highly successful. Currently, this business line is the clear market leader in the domestic market in terms of managed renewable power plant capacities, which capacity has now reached almost 1,700 MW.
For the waste management segment, which underwent significant growth after the acquisition of FE-GROUP INVEST Plc. in 2022, the waste management concession launched on 1 July 2023 could represent additional opportunities, and this fact seems to be already confirmed by the experience of the first half-year of operation.
ALTEO continues to pursue the active investment activity highlighted in its strategy. The transaction involving 100% of the share capital of Energikum Plc. and 33% of the issued capital of ECO-FIRST Kft. was closed on May 25, 2023. Energikum Plc. holds the business quota representing 99% of the issued capital of Energigas Ltd., which is the owner of the biogas plant in Nagykőrös, while ECO-FIRST Kft. is engaged in waste trade. In addition to the above, ALTEO is continuously exploring energy and waste management investment opportunities in Hungary and the region.


Leave a Reply Cancel reply
Top 5 Articles
L'Oréal Appoints New Managing Director in the Region January 6, 2025
Gedeon Richter to Sell Chinese Biosimilar Product in Europe October 9, 2024
2024 Sustainable Future Awards Presented October 10, 2024
New President at the American Chamber of Commerce December 11, 2024
Minister of Economy Praises Hungarian Tourism December 10, 2024
No comment yet. Be the first!