Examining the financial health of state-owned enterprises within Europe’s energy sector
Heinrihsons, Dāvis (2024)
Heinrihsons, Dāvis
2024
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024060621673
https://urn.fi/URN:NBN:fi:amk-2024060621673
Tiivistelmä
This thesis examines the financial health of State-Owned Enterprises (SOEs) within the energy sector in selected European countries. The primary objective is to determine their financial performance using publicly available data and financial statements, focusing on pre-selected key metrics such as Return on Assets (ROA), Return on Equity (ROE), Debt-to-Equity ratio, and Net debt-to-EBITDA over the period from 2020 to 2022.
The methodology involves thorough data collection, translation, and analysis of financial information from government websites and official SOE webpage investor-related information and financial statement sources. This study provides an in-depth comparative analysis across different European regions which were found to have the most comparable legislation systems and whose total SOE counts did not widely differ across different sources. The researched regions included the Baltic States, Nordic countries, and some countries from the Western and Southern Europe.
The findings reveal significant variations in the financial health of energy sector SOEs across Europe and examined regions, the performance measurement system highlighted countries, regions and individual SOEs with strong financial management, those that are in a need for some improvement, as well as those with average or normal performance. The research offers valuable insights for policymakers in EU nations and can help in guiding strategic decisions regarding the expansion or contraction of SOE portfolios, as well as be the start for finding ways to improve underperforming SOEs.
The methodology involves thorough data collection, translation, and analysis of financial information from government websites and official SOE webpage investor-related information and financial statement sources. This study provides an in-depth comparative analysis across different European regions which were found to have the most comparable legislation systems and whose total SOE counts did not widely differ across different sources. The researched regions included the Baltic States, Nordic countries, and some countries from the Western and Southern Europe.
The findings reveal significant variations in the financial health of energy sector SOEs across Europe and examined regions, the performance measurement system highlighted countries, regions and individual SOEs with strong financial management, those that are in a need for some improvement, as well as those with average or normal performance. The research offers valuable insights for policymakers in EU nations and can help in guiding strategic decisions regarding the expansion or contraction of SOE portfolios, as well as be the start for finding ways to improve underperforming SOEs.