Financial results

Stedin Group achieved a net profit of €44 million in 2022 (2021: €21 million). This figure is lower than expected, which can be attributed to considerable geopolitical unrest over the period, driving up energy prices and reducing the availability of raw materials and commodities, combined with shortages in the labour market.

Operating income

Operating income in 2022 was €1,333 million. This is €54 million higher than in 2021, thanks to higher transmission revenues and higher revenues in the metering domain. With effect from 2022, the rates are based on new method decisions issued by the ACM that will apply from 2022 until year-end 2026. This had a positive effect on our net revenue and other income in comparison with the previous year. In addition, rates in the metering domain were reduced in 2021 to compensate for the excess returns achieved in previous years.

Total operating expenses

In 2022, total operating expenses increased by €92 million (8%) to €1,247 million, driven by the €110 million increase in costs for network losses and, among other things, the €21million increase in transmission costs and the €16 million increase in personnel expenses. On the other hand, other operating expenses decreased by €40 million, which was due in part to the elimination of municipal sufferance taxes, which municipalities are no longer permitted to charge effective 2022, and a €27 million decrease in depreciation charges.

Due to the soaring energy prices, costs for network losses have increased considerably. In the years to come, this effect will continue to be visible in the costs reported by Stedin. The grid manager is responsible for the purchasing of energy that is made available on the grid but not registered as sold to customers. This lost energy is known as network loss. The losses have both physical and non-physical causes, such as heating of cables, leakage currents, vacancy and fraud. Partly due to the sharp increase in energy prices, Stedin decided to adopt a different purchasing strategy which involves longer-term purchasing compared with Stedin’s previous practice. As a result, Stedin’s costs are now less exposed to short-term fluctuations in energy prices, which improves the quality of financial forecasts. In addition to this change in purchasing strategy, Stedin has also considered other measures to minimise network losses. For example, it is implementing process optimisations with several of its internal departments. For more information about network losses caused by fraud, see the‘Energy theft and safety’ section.

The fall in depreciation charges can be largely attributed to a change in the depreciation method for gas-related assets (other than client meters), which was introduced on 1 January 2022.  For further information, see ‘Change of accounting estimate for depreciation method and useful life’ in the notes to the consolidated financial statements’.


Investments in property, plant and equipment and intangible assets in 2022 amounted to €712 million, an increase of 4% (2021: €687 million).

2022 saw a sharp rise in grid-driven investments while client and meter-driven investments decreased slightly compared with 2021. In the ‘Financial and economic performance’ section, we describe what we are doing to be able to finance those investments. The nature of the investments is described in the ‘Facilitating the energy transition’ section

Financing, solvency and credit rating

This year, the increased investments led to a negative cash flow of €297 million after operating and investing activities. This has led to growing financing requirements. Combined with Stedin’s financing activities, this has resulted in €53 million in cash and cash equivalents. For further details on this, see the ‘Financial and economic performance’ section

In all, Stedin currently has €1.5 billion in outstanding green bonds, which was the subject of a new Allocation & Impact report in December.

As at 31 December 2022, our solvency ratio was 44.4% (2021: 45.6%). Stedin Group’s policy is aimed at maintaining a solvency ratio of at least 40% in the long term. The objective of the Group is to retain its A- credit rating with a stable outlook, provided by Standard & Poor’s (S&P). On 25 July 2022, Stedin’s credit rating of A- with a stable outlook was reaffirmed by S&P. For the latest developments regarding the credit rating, see note 34 Subsequent events.

FFO/Net Debt ratio

The FFO/Net Debt ratio as at 31 December 2022 was 10.1% (year-end 2021: 11.3%). The ratio fell, mainly as a result of the sharp fall in the FFO caused by the increase in costs for network losses. The net debt also increased as a result of financing raised.

Income tax

Profit before income tax for 2022 was 59 million (2021: €32 million).

The tax expense increased by €4 million in 2022 to €15 million, partly due to a higher profit before income tax. The effective tax rate (as a percentage of profit before income tax from continuing operations) in 2022 was 25.3% (2021: 34.72%).

Deferred tax assets and liabilities were measured as at 31 December 2022 on the basis of the current tax rate of 25.8%.