Atel Group results for the first half of 2005

Aare-Tessin Ltd. for Electricity (Atel) turned in a positive performance for the first half of 2005. Turnover grew by 12 percent to CHF 3.8 billion and the operating profit (EBIT) increased by 28 percent year-on-year to CHF 274 million.

The Atel Group headquartered in Olten closed the first semester 2005 success-fully. Atel CEO Giovanni Leonardi: «The first six months of 2005 were marked by difficult circumstances in the energy business, but these negative influences were more than compensated by favourable developments in European electricity trading.» Additional special effects led to a significant improvement in earnings overall.

In the first half of 2005 the Atel Group generated a consolidated net turnover of  CHF 3.8 billion. This represents an increase of 12 percent for the energy services group. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 9 percent to CHF 365 million and earnings before interest and taxes (EBIT) grew by 28 percent to CHF 274 million. EBIT includes income from the sale of real estate and the effects of changes to the IFRS accounting principles. If these effects are excluded, EBIT rose 6 percent year-on-year. In the first half of 2005 Atel generated a group profit of CHF 219 million or 24 percent more than the previous year. If the same accounting principles are applied and income from real estate is not taken into account, this represents an improvement of 4 percent.

Energy segment The energy business showed strong growth in all regions and markets. Rising electricity prices in the European energy markets had a positive effect. On the other hand, bottlenecks in cross-border capacity had a negative impact on business activities. The reduced availability of some power stations also proved burdensome. The extended blackout of the Leibstadt power station was of particular consequence. Under these circumstances the Energy segment produced a net turnover of CHF 3.2 billion or 15 percent more than the first semester of 2004. Operating profit climbed to CHF 255 million, 19 percent up on the previous year. At 46 TWh, energy sales were on a par with the previous year. In addition to the traditional physical sales, Atel concluded trading transactions in standardised products for approximately 70 TWh (2004: 52 TWh) or a total value of CHF 3.8 billion (2004: CHF 2.4 billion).The net profit on the trade with these products of CHF 23 million (2004: CHF 19 million) is booked as a net turnover position as before.

Energy Services segment In the Energy Services segment, Atel Installationstechnik Group (AIT) in  Zurich and the GAH Group in Heidelberg together generated a net turnover of  CHF 679 million, which equals organic growth of 3 percent. At CHF 8 million, operating profit was on a par with the previous year. The markets relevant to  the Energy Services segment remained stable during the first half of 2005.

Outlook Subject to unexpected events, Atel expects turnover and operating income for the 2005 business year to be on the previous year's level. 

Aare-Tessin Ltd. for Electricity  Corporate Communications 

Atel Group: key figuresHalf-year
2004/1
Half-year
2005/1
Variance
in %
Energy sales (GWh)*46 41546 062-0.8
Net turnover (CHF mn.)*3 4243 843+12.2
     Energy*2 7653 165+14.5
     Energy Services660679+2.9
Earnings before interest, tax and
     amortisation (EBITDA) (CHF mn.)

334

365

+9.3
Group profit (CHF mn.)177219+23.7
     in % of net turnover5.25.7+9.6
Net investments (CHF mn.)**8193+14.8
Shareholders' equiry (CHF mn.)2 0082 264+12.7
Employees***7 7378 073+4.3


* plus trading in standardised products 

 

 

     in TWh5270+34.6
     in CHF bn. 2.43.8+58.3

**  Excluding variance in time deposits and securities *** Average number of full-time equivalent employees

 


Aare-Tessin Ltd. for Electricity (Atel) 
Aare-Tessin Ltd. for Electricity (Atel), Switzerland's leading Energy Services provider, is active throughout Europe. Established in 1894, Atel now focuses on two core businesses: production-supported Energy Trading and Energy Services. The Olten-based Group, which employs approximately 8000 people, generated sales of CHF 7 billion in 2004. Its principal markets in the Energy segment are Switzerland, Italy, Germany and the countries of central and eastern Europe. Products and services cover an extremely wide range: portfolio management, group energy supplies, energy derivatives and option contracts, distribution partnerships. Trading and distribution are supported by the Group's own hydro and thermal power stations, and by an extensive transmission grid. In the Energy Services segment Atel provides a full range of technical services relating to all aspects of energy (electricity, gas, oil, biomass) and their applications: power, lighting, cooling and heating, communication and security. Atel is among the leading providers of Energy Services in both Switzerland and Germany.