2004 annual results

The energy service provider Atel has reported excellent results for 2004. Turnover for the Group climbed 32% to CHF 7 billion and Group profit increased 25% to CHF 339 million. The Board of Directors proposes to increase the dividend from CHF 22 to CHF 24 per registered share.

Olten-based Aare-Tessin Ltd. for Electricity (Atel) has posted outstanding results for 2004 thanks once again to growth in its energy business (trading and sales) and good financial earnings. Atel has been marketing the energy portion from Edipower power stations exclusively through its Milan subsidiary since the beginning of 2004. This accounts for the sharp rise in energy sales in the Southern/Western Europe region. But all of Atel’s other energy markets also contributed to these positive results which have secured the company’s position as leading Swiss company on Europe’s energy markets. 

Reported turnover for the Atel Group rose 32% in 2004 to CHF 7.0 billion (2003: CHF 5.3 billion). Earnings before interest and tax (EBIT) were up 20% at CHF 431 million, bringing Atel’s Group profit in 2004 to CHF 339 million, up 25% on the prior year (2003: CHF 272 million). EBITDA grew 9% to around CHF 673 million. Restructuring measures in the Energy Services segment led to a 235 reduction in the average number of employees to 7,870.

Energy segment: All regions successful In 2004 Atel successfully expanded its sales and trading operations in energy business in all European regions, with trading performing particularly well. Turnover in the Energy segment totalled CHF 5.5 billion (2003: CHF 3.8 billion) and operating profit (EBIT) grew 18% to CHF 433 million. Electricity sales rose once more to 93 billion kWh (+ 36%). Last year Atel also transacted energy business in standard products of 109 billion kWh, equivalent to CHF 5.0 billion. Atel only accounts for trading profit from standard products under net turnover.

Energy Services segment: Larger contribution to earnings The Energy Services segment improved its operating performance in the past twelve months. Despite posting extraordinary expenses, the segment reported an increased contribution to earnings. The GAH Group in Heidelberg and Atel Installationstechnik Group (AIT) in Zurich generated turnover of around CHF 1.4 billion in 2004 which was in line with the prior year. Operating profit totalled CHF 21 million (2003: CHF 16 million). 

2005: Further growth In the current financial year Atel reckons with stable development in international energy markets. The Atel Group expects growth in turnover and operating results to be around the same level as last year.

Aare-Tessin Ltd. for Electricity Corporate Communications 

Note: Atel will be announcing its detailed results at the balance sheet media conference on 6 April 2005 in Olten. The Annual General Meeting will be held on 28 April 2005 at the town hall in Olten.