The energy and utilities industry is one of the many high-risk industries around the world, including North America. Do you keep up with the latest in the energy and utilities industry?
Did you know…
- During the next 15 years, it is expected that utility earnings will grow 3% to 4% annually, with upside if utilities change smartly in the face of the new competition
- In 2013, consumer spending for electricity, natural gas, and other fuels represented only about 3% of a consumer’s before-tax income
- According to Value Line, the more than 30 new entrants it covers that have a focus on North America collectively generated about $20 BN in sales in both 2013 and 2014
- In 2014, the average after-tax operating margin of a utility was 7.5%, the average return on equity was 8.1%, and each and every utility was profitable
- Utility operating activities provided over $88 BN of cash that was used to pay more than $21 BN in dividends to investors
- Spending on electricity distribution systems by major U.S. electric utilities—representing about 70% of total U.S. electric load—has risen 54% over the past two decades, from $31 billion to $51 billion annually
- According to a 2015 U.S. Department of Energy report, 70% of power transformers are 25 years of age or older, 60% of circuit breakers are 30 years or older, and 70% of transmission lines are 25 years or older
- Over the past decade, investment in overhead poles, wires, devices, and fixtures such as sensors, relays, and circuits has risen by 69%, and spending on substation transformers and other station equipment has increased by 35%
- A McKinsey analysis of 50 major publicly listed utilities from Asia, Europe, and North America showed average total cumulative returns to shareholders of about 1 percent from July 2007 to July 2017, compared with 55 percent for the MSCI World Index
- The International Energy Agency (IEA) estimates that from 2016 to 2025, there will be $7.2 trillion in investment in the power sector, almost $1.0 trillion more than in the previous decade
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