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2016 half-year results
BKW increases revenue and profit
Bern (ots) - BKW has achieved an excellent financial result in the first half of 2016. Total operating revenue increased by 7% to CHF 1,373 million. The Group's comparable operating profit also improved significantly in the first six months of the year: EBIT grew by 24% to CHF 171 million year-on-year. Reported net profit also increased slightly to CHF 124 million.
Thanks to successful energy position management, continued strong performance in the trading business, and cost reductions, BKW was again able to largely offset the significant negative effects of electricity prices in the first half of 2016. Grid business performance also contributed to a better result. The expansion of the Services business continued apace from the previous year and was rewarded with a good result. While sales increased significantly by almost 30%, profit rose disproportionately to CHF 11 million, despite setup cost.
in CHF millions
1st half-year 2015: Total operating revenue: 1,278 1st half-year 2016: Total operating revenue: 1,373 change+7 %
Operating profit(EBIT) incl. one-off effects,1st half-year 2015:199 Operating profit(EBIT) incl. one-off effects,1st half-year 2016:171 Comparable operating profit (EBIT) 1st half-year 2015: 138 Comparable operating profit (EBIT) 1st half-year 2016: 171, +24%
BKW made total investments of CHF 370 million in the first half of 2016, of which CHF 235 million were used to finance acquisitions. In the first six months, a total of 10 new companies and groups joined the BKW company network. This has resulted in a marked rise in employee numbers: at the end of June 2016, the BKW Group employed 4,830 staff, including 355 apprentices.
BKW expands regulated production
BKW sells 85% of its production on the market. As market prices continue to decline, production costs and expenses have become higher than attainable market revenues. In order to offset the low market prices and strengthen the energy sector, BKW is expanding its regulated production in the renewable energy sector. In the first half-year, two small hydroelectric power plants in Switzerland connected to the grid, with another following in August and a fourth scheduled for September. The Fosen wind farm project in Norway was also launched successfully (http://www.bkw.ch/en/about-us/press-releases/detail/news/detail/News/bkw-und-credit-suisse-energy-infrastructure-partners-ag-werden-teil-des-groessten-onshore-windparkpr/). Six wind farms with an installed capacity of 1 GW will be in operation in the Trondheim region by 2020; BKW has an 11% interest in the project.
Start of expansion in the international engineering business The acquisition of the German Lindschulte-Group in April laid the foundation for the expansion of the international engineering business in the fields of energy, infrastructure and the environment (http://www.bkw.ch/en/about-us/press-releases/detail/news/detail/News/bkw-baut-infrastrukturdienstleistungen-bedeutend-aus/). BKW continues to expand its engineering network in Europe. In the field of infrastructure, significant investment is required in new infrastructure projects as well as renovation and maintenance work. Infrastructure is a growth business. BKW is focused on safety, productivity and efficiency in this area, with the aim of offering holistic solutions for infrastructure and the environment as well as facility planning and facility safety.
Buildings becoming an integral part of the energy supply system Switzerland's building stock offers significant growth potential when it comes to improving energy efficiency. Modern building technology can play a key role in the achievement of the 2050 energy strategy's efficiency targets. BKW has been developing its building technology business over the past few years and is now able to position itself successfully in the fields of planning, implementation and installation. Modern buildings are increasingly taking the form of small power plants, and growing numbers of people want to use the electricity they produce for themselves. BKW recognised this trend early on; at the end of last year, it launched BKW Home Energy, a modular, extremely user-friendly system that is beginning to yield positive results (http://www.bkw.ch/privatkunden/home-energy/). The system can be customised according to the user's requirements, allowing them to intelligently store electricity from photovoltaic roof installations in the form of heat, hot water or battery power and then use it as required, thus significantly increasing self-consumption. The latest BKW Home Energy feature now also allows electric cars to be integrated into the system.
Good result expected for 2016
BKW confirms the outlook for the current year and is confident that the prior year's operating profit (excluding one-off effects) will be achieved. The negative effects of falling electricity prices will be offset by the active management of energy positions, rigorous cost management and higher revenues from the Grid and Services business. The expansion of the Services business will allow BKW to become less and less dependent on the electricity price.
An interview (in German) with BKW CEO Suzanne Thoma regarding the half-year results can be found here. - https://vimeo.com/bkwag/halbjahresbericht16
The Half-Year Report 2016 can be downloaded as a PDF from the Download Center. - www.bkw.ch/halfyearreport16
Information for media representatives:
There will be a teleconference with BKW CEO Suzanne Thoma and CFO Ronald Trächsel at 9.15 a.m. on Tuesday 6 September during which you will have the opportunity to ask questions regarding the half-year results. Dial-in information will be provided on request. Please register by emailing firstname.lastname@example.org.
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.
The BKW Group is a Bern-based international energy and infrastructure company employing almost 5,000 people. The diversity of the company's expertise allows it to offer its customers a full range of tailored services. The Group plans, builds and operates infrastructure to produce and supply energy to businesses, households and the public sector. The BKW Group offers a wide range of services, from building technologies, infrastructure engineering and digital business models for renewable energies to traditional multi-utility infrastructure services.
The registered shares of BKW AG are listed on the SIX Swiss Exchange and the BX Berne eXchange.
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