Top European utilities gain €57.74B market value in Q4'21

The median market capitalization of Europe's top 20 electric and multi-utilities analyzed by S&P Global Market Intelligence declined 0.1% through the fourth quarter of 2021, but rose 10.2% from the end of December 2020.

Overall, 17 of the largest 20 companies in the European power and utilities sector recorded an increase in market value during the fourth quarter of 2021, with 11 posting double-digit gains quarter over quarter, as companies in Europe's emerging hydrogen economy received long-awaited regulatory clarity from the EU, with proposals around a market framework laying the foundation for growth in coming months.

The cumulative market capitalization of the selected 20 companies reached €576.06 billion at the end of December 2021, an increase of €57.74 billion, or 11.1%, from €518.32 billion at the end of September 2021, according to S&P Global Market Intelligence data.

Italy's Enel SpA and Spain's Iberdrola SA remained by far the largest European utilities by market cap, retaining their first- and second-place spots on the list. Enel grew in market capitalization by 5.9% to €71.60 billion as of the end December 2021 while Iberdrola saw its market cap rise 19.9% quarter over quarter to €64.28 billion.

Enel is looking to spend €170 billion over the course of this decade to accelerate its decarbonization and achieve net-zero emissions by 2040 — 10 years sooner than previously planned. During the quarter, Iberdrola revealed plans to invest £6 billion in offshore wind farms through ScottishPower Renewable Energy Ltd.'s hub off the east coast of England and to invest an estimated €2.3 billion to build a 1,000-MW green hydrogen plant on the Iberian Peninsula in partnership with H2 Green Steel, among other developments.

Veolia Environnement SA recorded the largest market capitalization gains in the sector on a percentage basis during the fourth quarter of 2021. The French water utility recorded a market value boost of 47.7% during the quarter, finishing the year with a market cap of €22.17 billion and improving its ranking on the list by five positions to 11th spot.

Other large European electric and multi-utilities experiencing double-digit percentage gains during the period included the U.K.'s National Grid PLC with a market value boost of 19.8%, Spain's Acciona SA with a rise of 17.4% and Germany's RWE AG with a rise of 16.9%.

National Grid expects full-year 2021 earnings to be significantly above the guidance range on the back of improved profit for the first half. Acciona cashed in on Spain's booming renewables market with a €1.5 billion IPO for its renewable energy subsidiary. RWE said it will spend €50 billion this decade to accelerate a pivot to renewables globally, and shareholders and analysts were largely upbeat.

France's Electricité de France SA, or EDF, Denmark's Ørsted A/S and Germany's EnBW Energie Baden-Württemberg AG saw quarter-over-quarter decreases in market share, with EDF booking the largest decline of 2.7% to €33.45 billion as of Dec. 31, 2021, and slipping to the sixth spot from fourth in December 2020.

The S&P Europe BMI Utilities index decreased 1.9% during 2021 compared to the S&P 500 index, which was up 26.9%, and the STOXX Europe 600 index, which increased 22.2%.