LKW defies the pandemic
Liechtensteinische Kraftwerke (LKW) posted increased operating and net profit in comparison with the previous year. In the energy business, lower procurement prices for energy helped to offset a decrease in domestic sales. The expansion of the fiber optic network has reached 71 percent.
The coronavirus pandemic made planning energy requirements and sales a huge challenge, according to a press release covering the Annual Report 2020 of LKW. By way of example, the press release cites dialogue between LKW and its major consumers, as some of these were forced to completely halt production during the crisis. In the end, a positive result was achieved in the electricity trading business, with LKW benefiting from lower prices on the electricity exchanges due to the pandemic. This more than made up for a significant year-on-year decline in domestic sales, LKW explains.
In total, sales at LKW fell by 5.3 million Swiss francs year on year to 83.6 million Swiss francs. The press release attributes this development to declining sales in the area of electro installations. In comparison with the previous year, however, EBIT was up from 9.0 million to 9.8 million Swiss francs, while net profit of 9.7 million Swiss francs was posted, equating to a rise of 0.8 million Swiss francs versus 2019. Around 2.9 million Swiss francs of this figure is paid out to the principality of Liechtenstein.
In the year under review, LKW continued its efforts in connection with implementing the energy strategy 2030. Among other things, the sale of electricity from renewable energy sources has increased by 10 percent, according to the press release. As of the beginning of 2021, LKW will now offer exclusively renewable electricity as standard for all customer groups.
In terms of the project to expand the fiber optic network, at year-end 2020 an expansion degree of 71.1 percent had been achieved. The active usage of existing fiber optic connections was increased by 23 percent to 58.7 percent year on year. LKW is planning to complete the switchover to fiber optic technology across Liechtenstein in full by the end of 2022.