108th BKW General Shareholders' Meeting
Security of supply thanks to a reliable production and grid infrastructure
2 Dokumente
Bern (ots)
Shareholders of BKW FMB Energy Ltd were presented with solid operating results for fiscal 2010 at the 108th General Shareholders' Meeting. The General Meeting approved the 2010 annual and consolidated financial statements and voted in favour of a dividend payment of CHF 2.50 per share (2009: CHF 2.50). Shareholders re-elected the Board of Directors for a new term of office until 2015 and elected Ueli Dietiker to the Board of Directors.
The BKW Group held its ground in fiscal 2010 against a challenging market and financial backdrop, and recorded a solid operating result. Consolidated operating revenue fell by 11.3% to CHF 3,187.2 million. Net profit was 23.5% lower than the previous-year figure at CHF 228.3 million, but given the circumstances this can be regarded as a good result. The result was influenced by steady performance of the energy business on the one hand, and low market prices coupled with the weak euro on the other.
Focus on energy security
The main priority of BKW is, and will always be, to ensure a reliable, ecological and cost-effective supply of electricity for its customers. As a result of the natural disaster in Japan, BKW has decided to subject its production strategy to an in-depth review and draw up scenarios that exclude nuclear power. The missing production volume will need to be replaced by a mix of alternative energies, including not only renewable energies (hydro power and new renewables) but also electricity from fossil-fired power plants in Switzerland and abroad. In the interests of energy security, grid facilities must also be renovated and expanded despite a difficult regulatory environment.
Due to the events in Japan, the general licence applications for replacement nuclear power plants - including a replacement for Mühleberg nuclear power plant - were suspended. As a result of this suspension, the value of the work performed for these applications to date is no longer a given. The costs of around CHF 14 million incurred to date will therefore be written down as a charge to the 2011 income statement.
Outlook
This year will remain challenging and demanding. The difficult boundary conditions have already had an impact in the first few months. The extremely dry spring will also leave its mark on business. Nevertheless, BKW expects to close 2011 with revenue on a par with the prior year. The operating result will once more be weighed down by persistently low energy prices on the international markets. Regulatory requirements as well as costs related to strategic projects will also impact the operating result. Taking all these factors into account, EBITDA for 2011 is expected to be within the prior-year range, adjusted for the special effect related to the reversal of the provision for onerous energy procurement contracts for partner plants in 2010. The result is dependent on the trend in energy prices, the regulatory environment and on financial markets. Assuming stable conditions and taking into account the aforementioned special effect, BKW expects to close 2011 with net profit on the prior-year level. This outlook does not take into account the impact of the events in Japan or the aforementioned write-down.
BKW intends to introduce a holding structure at the beginning of 2012 in order to better address market requirements. The change will take the form of a share swap in which BKW FMB Energy Ltd shares will be exchanged for shares in the new BKW Holding AG.
Shareholder base growth and elections to the Board of Directors
In 2010 BKW saw further growth in its shareholder base, with the number of shareholders rising to around 10,000. The full Board of Directors was re-elected until the 2015 General Meeting. Ueli Dietiker was elected to succeed Ulrich Sinzig, who stood down after 19 years. Thanks to an extensive track record, Ueli Dietiker has a comprehensive knowledge of corporate financial management.
The 2010 annual report and financial report can be downloaded from: www.bkw-fmb.ch/annual-report10 www.bkw-fmb.ch/financial-report10
Videos of the addresses given at the General Shareholders' Meeting are available at www.bkw-fmb.ch/generalversammlung from 18:00.
The statements contained in this press release constitute expectations and forward-looking statements. Because these statements are subject to risks and uncertainties, actual future results may differ materially from those expressed or implied by the expectations and statements. This press release is issued in German, French, English and Italian. The German version is authoritative.
Kontakt:
Antonio Sommavilla
031 330 51 07
info@bkw-fmb.ch