Sector information: energy companies

There are different types of energy companies operating in different segments of the energy industry. Here are some common types:

• Electricity suppliers: These businesses provide electricity to consumers, businesses and industries. They can use both conventional and renewable energy sources.
• Gas suppliers: Gas companies provide customers with natural gas, which is used for heating, cooking and industrial applications.
• Oil and gas companies (Exploration and Production): These businesses are involved in the exploration and production of oil and natural gas. They search for new resources and develop the infrastructure for extraction.
• Refineries: Refineries process crude oil into various products, including gasoline, diesel, kerosene and petrochemicals.
• Renewable energy companies: Businesses dedicated to renewable energy sources such as solar, wind, hydro, biomass and geothermal.
• Energy trading companies: These businesses operate in the energy markets and trade electricity, natural gas, oil and other energy-related products.
• Energy consultancies: Consulting firms specializing in providing energy efficiency, sustainability, regulatory and strategic planning advice.
• Distribution System Operators (DSO): These businesses operate the electricity and gas distribution networks and supply end users.
• Energy storage companies: Businesses focused on storing energy for later use, including battery storage systems and other advanced technologies.
• Nuclear energy companies: Businesses involved in operating nuclear power plants and producing nuclear energy.
• Energy engineering firms: Engineering firms specializing in the design, construction and maintenance of energy infrastructure and facilities.
• Smart grid companies: Businesses focused on developing smart grids and technologies to manage energy networks more efficiently.
• Energy cooperatives: Cooperative structures in which individuals, communities or businesses jointly own and participate in renewable energy projects.
• Local energy companies: Small-scale energy companies that focus on local communities and renewable energy projects within a limited geographic area.

What to look out for when buying an energy company

When considering buying an energy company, there are several important aspects to consider. Here are some essential considerations:

• Energy portfolio and diversification: Examine the business's current energy portfolio, including its mix of energy sources (conventional, renewable) and degree of diversification. A balanced portfolio can make the business more robust against market fluctuations.
• Regulatory framework: Understand the regulatory framework within which the energy company operates. This includes rules related to energy production, distribution, environmental standards and other sector-related regulations.
• Sustainability and renewables: Assess the business' commitment to sustainability and the use of renewable energy sources. Consider the growth potential and market demand for renewable energy.
• Technological infrastructure: Evaluate the energy company's technological infrastructure, including the state of energy production facilities, distribution networks and any implemented technological innovations.