Press release, 27 June 2018
Pavel Tykač’s Seven Energy group is transforming its energy commodity trading. All business activities are being taken over by Sev.en Commodities AG, which intends to start trading with electricity, coal and emission allowances on the European level. The company is also considering trading natural gas in the future.
"We see opportunities particularly in the ongoing changes on the European energy market. The gradual shutdown of German nuclear power plants in 2019-22 and the attendant increased need to generate energy from coal and gas, and the growing share of renewable sources and resulting price volatility are all processes that have interesting business and acquisition potential for us that we want to utilise,” says Michal Skalka, the CEO of Sev.en Commodities, who has extensive experience with commodity trading in Western and Central Europe.
He believes that the first necessary step to create a solid business foundation is to complete the ongoing consolidation.
“Until now, our business teams worked in silos in several different generation companies within our group and their tasks often overlapped. The new arrangement and unified active management will improve efficiency and drive better results. We also want to be prepared for business opportunities that we see on the market and for the introduction of new acquisitions in the group,” he explains.
Sev.en Commodities AG is headquartered in Liechtenstein and has a branch in Prague. This branch will be managing the group’s domestic business activities.
“All our current contracts with purchasers of coal and electricity, including the key contract with the ČEZ Group, will be implemented in the Czech Republic, where we will also continue to pay our taxes and all mandatory levies, provide voluntary donations and support regions,” says Michal Skalka.
Because of its European ambitions in business and acquisitions, the company is registered in Liechtenstein.
“We want to be respected by our business partners. That’s why we sought for Sev.en Commodities AG an environment with clear and comprehensive corporate law, a solid reputation and stable conditions for trading in Europe. And Liechtenstein best meets these requirements,” says Skalka.
His team will also contribute to analyses of commodity markets, the management of market and credit risks and the creation of business outlooks. It will, therefore, play a crucial role in the expansion announced by the Seven Energy group this February. Seven Energy is planning to primarily invest in conventional energy in Europe. Its objective is to become a major player in the rapidly changing European energy market.
Sev.en Commodities will begin operations on 1 August 2018, and the group’s transformation will be completed this autumn. The company already has all the necessary licences and permits. Sev.en Commodities has also become a member of the European Federation of Energy Traders (EFET).