WWZ expands district heating business
The WWZ Group is focusing on more district heating. In addition to the already initiated project for a heating network in Steinhausen ZG, the feasibility of a network in Baar ZG is being examined. The district heating business area made an increased contribution to the Group's sales in the first half of 2023.
The WWZ Group is observing rising demand for district heating and cooling. The corresponding business area increased its sales by 15 per cent year-on-year in the first half of 2023, the Zug-based energy, telecoms and water supplier informs in a statement. In the half year under review, the group was able to connect further properties to its Circulago and Ennetsee energy networks.
In the future, WWZ plans to further expand this promising business area. A feasibility study for a heating network has already been carried out in Steinhausen, and the group is currently working on a feasibility study with the municipality of Baar. Investments in district heating and district cooling did “temporarily lead to higher operating costs, but the investments will pay off in the medium term with stable cash flows”, writes WWZ.
In the first half of 2023, the expansion of the district heating and district cooling business also increased the company’s operating costs by almost 4 per cent. The operating result nevertheless increased by 27 per cent to CHF 13.6 million. The background to this is a year-on-year increase of 24 percent to 166.5 million Swiss francs in net revenues from deliveries and services. At 15.7 million Swiss francs, net profit was 8.4 million Swiss francs higher than in the first half of 2022.