Atel Group results for the first half of 2006

Aare-Tessin Ltd. for Electricity (Atel), the Swiss energy-services provider that is active throughout Europe, substantially increased both turnover and profit in the first half of 2006. The consolidated turnover rose by 46 % to CHF 5.6 billion, profit by 64% to CHF 359 million. All corporate divisions and market regions contributed to this very encouraging result.

Based in Olten and active throughout Europe, the Atel Group can look back on a highly successful first half of 2006. The Group generated consolidated turnover of CHF 5.6 billion in the first six months, which is equivalent to a rise of 46 % over the corresponding period of the previous year. Consolidated operating profit (EBIT) rose by CHF 150 million to CHF 458 million, equivalent to an increase of 49 % – or 41 % when adjusted for the effects of currency conversion and of changes in the scope of consolidation. Group profit after income taxes, including minority interests, increased to CHF 359 million – a rise of CHF 140 million, or 64 %. This large increase was mainly due to one-off exceptional effects as well as to a rise in the volume of energy deliveries while energy prices continued to climb.

Energy segment (additional market opportunities in central and eastern Europe) The results achieved by the Energy segment were eminently satisfactory, although trends in European energy markets varied widely. In Central and Eastern Europe particularly, advancing liberalisation created additional market opportunities. At a European level the price of electricity at first continued to rise, suffering a fall at the end of April and then stabilising at a high level. These circumstances enabled the Energy segment to generate turnover of CHF 4.9 billion in the first six months of 2006, an increase of 55 % over the previous year’s corresponding figure. Apart from the high price level, the major contributory factor was a 31 % increase in deliveries to 60.4 terawatt-hours (2005: 46 TWh). The Energy segment’s operating profit (EBIT) soared by 53 % to CHF 441 million. All business units contributed to this striking improvement. Trading is functioning with particular success: it succeeded in taking full advantage of the opportunities that presented themselves in the various markets. In the first half of the year, in addition to conventional physical deliveries, Trading conducted transactions in standardised products totalling some 101 TWh with external counterparties, to the value of CHF 6.8 billion. The corresponding figures for the previous year were 70 TWh and CHF 3.8 billion. As in previous periods, the net trading profit from standardised products traded with third parties – which totalled 20 million francs in the first half-year (2005: 23 million francs) – has been included in turnover. Additionally, the profits for the segment were influenced by one-off exceptional revenues.

Energy Services segment: significant improvement after restructuring The Energy Services segment consists of the Atel Installationstechnik Group (AIT) in Zurich and the GAH Group in Heidelberg, Germany. Having completed its reconstruction, the segment made a substantially higher profit contribution than in the previous year. Net turnover increased from CHF 679 million to CHF 703 million (+ 4 %). In local-currency terms, with changes in the scope of consolidation excluded, turnover was up by 17 %. The consolidated operating profit (EBIT) doubled to CHF 16 million, though with changes in the scope of consolidation excluded the increase was only 61%. 

Outlook Based on this very encouraging first-half result, Atel expects that turnover and earnings for the full year – subject to extraordinary events – will substantially exceed the previous year’s figures (2005 turnover: CHF 8.6 billion, 2005 Group profit: CHF 413 million). It must be borne in mind that the energy business in the first half of 2006 was characterised by seasonal effects and one-off special revenue items that cannot be expected to occur again. On a current view the momentum of operating earnings is therefore expected to remain good in the second half of the year, though less dynamic – in the Energy segment particularly. 

Aare-Tessin Ltd. for Electricity Corporate Communications

 

Atel Group: key figuresHalf-year
2005/1
Half-year
2006/1
Variance
in %
Energy sales (GWh)*46 06260 354+31.0
Net turnover (CHF million)*3 8435 599+45.7
     Energy*3 1654 899+54.8
     Energy Services679703+3.5

Earnings before interest, tax,
depreciation and amortisation (EBITDA) (CHF million)


399

555

+39.1
Group profit (CHF million)219359+63.9
     in % of net turnover5.76.4+12.3
Net investment (CHF million)**9372-22.6
Shareholders' equity (CHF million)2 2642 802+23.8
Employees***8 0738 466+4.9


*plus trading in standardised products 

 

 

     in TWh70101+44.3
     in CHF billion 3.86.8+78.9

**  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) is the leading production-based energy service provider in Switzerland and operates at a pan-European level. Founded in 1894, Atel focuses on the two core businesses of production-based Energy Trading and Energy Services. The group of companies, domiciled in Olten, employs a staff of around 8400 and generated a turnover of CHF 8.6 billion in 2005. Its main markets in the energy sector are Switzerland, Italy, Germany and the Central and Eastern European countries. Its goods and services range from portfolio management and group energy supplies, to energy derivatives and option contracts, to establishing distribution concepts involving other partners. Trading and sales are supported by a number of proprietary hydraulic and thermal power stations plus a broadly ramified transmission grid. With its Energy Services Division, Atel provides all technical services pertaining to energy (electricity, gas, oil and biomass) and its uses as power, lighting, cooling and heating, communication and security. Atel is among the leading providers of Energy Services in both Switzerland and Germany.