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Half-Year Results 2013
Solid operating business - positive impact from one-off effects
Bern (ots) - The BKW Group recorded further solid growth in its operations during the first half of 2013 despite a difficult economic environment. Consolidated total operating revenue and operating profit increased, but were affected by low energy prices and two one-off effects. At CHF 103.6 million, net profit was just maintained at the prior-year level. The aims behind the Group's new organisational structure and completion of the Group Executive Board appointments are to serve the market more efficiently and develop innovative new services quickly.
The BKW Group posted electricity sales of 9,771 GWh (9,748 GWh) for the first half of 2013, with total operating revenue of CHF 1,388.9 million (CHF 1,368.4 million). Compared with the prior-year period, this equates to an increase of CHF 20.5 million. Combined with two one-off effects (profit from the sale of the transmission grid and reimbursement of 2009 costs for system services), this meant that BKW recorded a significantly higher operating profit. Operating profit before depreciation, amortisation and impairment totalled CHF 288.2 million, an increase of CHF 35.3 million or 14% compared with the first half of 2012. Energy, trading and grid business all contributed to this positive development. A gratifying increase was also recorded in the construction and engineering services sector and in electrical installation business. The financial result was lower as capital and equity markets performed less strongly, with a knock-on effect on the shares in the decommissioning and disposal funds which are measured at market value. A further negative factor was the revision of the Italian law governing tax rates for energy sector companies. Net profit was down slightly year-on-year, falling by CHF 5.5 million or 5.0% to CHF 103.6 million.
BKW expects the market environment to continue to be challenging for the rest of the year, with energy prices remaining low and margin pressure on the international markets. Coupled with regulatory requirements and a persistently strong Swiss franc, this will also affect the operating result for 2013. Impairment testing of the power plants will be carried out during preparation of the annual financial statements. Subject to any impairment of individual power plants, BKW expects its EBITDA and net profit to be in line with the figures reported for the 2012 financial year. From electricity supplier to comprehensive energy service-provider - BKW responds to difficult market conditions
The economic environment, coupled with market distortions due to the massive subsidies for new renewable energies in Germany, are key to BKW's development. BKW has adapted its corporate strategy in line with these new market conditions, not least with consideration for what will happen when the Mühleberg nuclear power plant is no longer operational. This strategy remains focused on delivering a reliable, cost-effective and ecological supply of electricity while using new products and services to consolidate and further develop BKW's position as the largest vertically-integrated energy provider in Switzerland. However, in order to raise both efficiency and effectiveness, BKW continues to work on its agreed cost reduction and efficiency measures, the implementation of which is scheduled for completion by 2015. Following the introduction of the new organisational structure, efforts are focusing on further structural and process-based adjustments to the Group's crossover functions and on making business operations increasingly dynamic. The completion of the Group Executive Board with the appointments of Monica Dell'Anna as Head of the Market Division and Renato Sturani, Head of Renewables and Efficiency will generate further positive impetus.
The 2013 Interim Report can be downloaded at www.bkw.ch/halfyearreport13
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 media release is issued in German, French, English and Italian. The German version is the authoritative version.
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