"The world relies on energy to power everything..."

Some of the most profitable energy companies are the traditional ones.  Based on companies with the highest new profit TotalEnergies, Shell and Public Joint Stock Gazprom were listed among the top names.  Overall, the energy sector is still considered a good investment.  In fact, the value of the global energy market has been calculated at around $6 trillion.  The size of the market and recent returns are two motivating factors.  While potential returns may move buyers to invest, risks are linked to current shifts away from fossil fuels and the potential for environmental accidents.  However, the United Nations estimates the world needs to invest $2.4 trillion a year through 2035 in energy systems to achieve the Paris Climate Agreement goals.

In Australia, they are taking a different approach. “Our vision for energy has evolved with the needs and preferences of our customers. We are committed to delivering on our ambition to achieve net-zero emissions by 2050, while supporting Australia’s decarbonization efforts,” said Russell Dawson, general manager of commercial finance at Jemena. “We are taking a multi-pronged approach. This includes supporting our customers to install solar panels on their properties across our electricity network in Victoria. Across our gas network, we’re exploring renewable gases with a series of pilot projects producing green hydrogen and biomethane.”

In this country, the most profitable energy companies are ranked based on best value, fastest growth, and most momentum.  Among companies listed were Southwestern Energy Co., an oil and natural gas explorer.  In June of last year, Southwestern authorized a $1 billion share repurchase program to continue through the end of 2023.  The company posted net income of $1.9 billion, swinging from a net loss of $2.68 billion a year ago despite a 28% year-over-year decline in revenue. 

To continue to be profitable, sustainable, and reliable, utilities are considering new technologies and aggressive business plans.  Jemena, in Australia, is relying on cloud-based technology to help navigate the energy transition.  “Our role is to make sure people have reliable and safe energy today, while taking steps to prepare for the energy system of the future, delivering customer choice and system reliability,” said Dawson. 

How is your utility preparing for future energy demands and changes?