Ovo’s earnings rose 11-fold in wake of energy crisis

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UK energy companies were allowed by regulator to recoup rising costs through customer bills

UK energy supplier Ovo Group increased its adjusted earnings 11-fold last year, after the regulator intervened to allow companies to recoup rising costs in the wake of Russia’s invasion of Ukraine. Ovo Group, which owns UK household supplier Ovo Energy as well as energy software company Kaluza, reported adjusted earnings of £225mn in the year to the end of December 2023 on revenues of £8.7bn. That was up from £20mn on revenues of £6.

But it has since been overtaken on market share by rival Octopus Energy. It is now the UK’s fourth largest supplier with about 4mn customers. Earlier this year, it appointed former Sainsbury’s chief executive Justin King as its non-executive chair. The £225mn adjusted ebitda figure strips out the value of energy Ovo buys in advance to hedge its supply commitments. It swung to a post-tax profit of £817mn last year from a loss of £1.3bn loss in 2022.

 

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