VNG reports extraordinarily good result for 2023 after heavy losses

After heavy losses in 2022, Leipzig-based gas wholesaler VNG can look back on an exceptionally good result last year. "In 2023, the extreme burdens caused by the gas replacement procurement for volumes no longer supplied from Russia were eliminated and these will not arise in 2024 either," said Bodo Rodestock, Member of the Executive Board for Finance and Human Resources, at the annual results press conference in Leipzig on Tuesday. Accordingly, the Group result for the 2023 financial year amounted to 380 million euros. In the previous year, it was minus 337 million euros. Adjusted operating earnings before interest and taxes of 447 million euros (2022: minus 205 million euros) were also significantly higher than the previous year's figure.

"Our economic success creates the basis for investments in our transformation towards green gases," said Rodestock. VNG plans to invest up to five billion euros by 2035 if the right conditions are in place. A relevant part of the investment is to flow into the expansion of the green gas infrastructure. Last year, 197 million euros were invested across all business areas. Invoiced sales amounted to around 23.2 billion euros in the 2023 financial year. In the previous year, it was around 36.2 billion euros.

In 2023, the Group focused primarily on further diversifying its gas procurement. Demand will be covered by imports from Norway, Algeria, the trading market and the purchase of liquefied natural gas (LNG). "We will continue to work on concluding new supply contracts," said CEO Ulf Heitmüller. Every additional contract is a building block for a reliable and secure gas supply. International cooperation is also essential for the hydrogen ramp-up. For example, work is currently underway to establish a green hydrogen supply partnership with Chile.

With a view to 2024, Heitmüller welcomed the national hydrogen strategy. "The hydrogen core network currently under discussion is an important prerequisite for the hydrogen ramp-up." However, a stable and legally secure framework is needed for this. Long-term investment decisions could only be made with appropriate capital market financing conditions.