European Companies Better Prepared for Energy Crisis, ING Analysts Say

European companies are reportedly in a stronger position to handle the current energy crisis compared to 2022, according to analysts from ING. Since Russia's invasion of Ukraine, energy demand across various industries has decreased. According to Jin10, companies have implemented measures to mitigate energy risks by investing in renewable energy, adopting more energy-efficient production processes, electrifying production, and securing longer-term energy contracts. The chemical industry, in particular, has shown significant progress. Even energy-intensive sectors like aviation and shipping have achieved notable improvements in energy efficiency, although these gains are sometimes offset by volatile trading patterns. Analysts believe that companies are now better prepared for higher energy prices than they were in 2022.