Der Miner von Kryptowährungen setzt auf ökologische Effizienz und baut seine Rechenzentren direkt in bereits ...
BKW Group: Changed market conditions necessitate impairment charges and provisions
Bern (ots) - Based on an assessment of the future market trend, the BKW Group will charge impairments and make provisions for onerous energy contracts to the 2011 financial statements. As a result of this measure, the Group expects to post a net loss of around CHF 150 million for the 2011 financial year, contrary to earlier expectations. The impairment charges concern new capital expenditure in fossil fuel thermal power plants abroad.
The environment and boundary conditions of the energy market have undergone sweeping and sustained changes which affect BKW's current and future earnings expectations. In drawing up the financial statements for the 2011 financial year, BKW tested its production facilities for impairment and will charge impairments and make provisions in view of future earnings expectations. While the value of Mühleberg nuclear power plant, BKW's other nuclear power plant interests, hydro and wind power plants as well as the other new renewable energy facilities in Switzerland is not impaired as things stand at present, BKW has lowered its expectations of future earnings from fossil fuel thermal power plants abroad. These power plants will have to compete in the energy market without government aid. BKW has interests in two gas-fired power plants in Italy - in Livorno Ferraris and Tamarete - and a minority interest in a coal-fired power plant in Wilhelmshaven, Germany. Implementation of the Wilhelmshaven power plant has been delayed and will incur higher construction costs than originally assumed. The electricity generated by these plants is purchased at production cost. BKW assumes that these production costs will be above the recoverable market prices. For these reasons, BKW will charge impairments and make provisions in the amount of around CHF 300 million. Adjusting for tax effects, the assumed net profit of more than CHF 100 million will be reduced by some CHF 250 million, resulting in an expected net loss of around CHF 150 million.
This is a provisional estimate contingent on further findings in the course of finalising the year-end statements and on the audit by external auditors. Further information on the 2011 financial year, including details of dividend payment, will be announced by BKW in its preliminary notification of the annual results on 23 February 2012 and publication of the annual results on 20 March 2012.
****************************************************************** 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.
BKW FMB Energy Ltd.
Phone. 031 330 51 07