Final 2005 results

Aare-Tessin Ltd. for Electricity (Atel) ended the 2005 financial year in encouraging form. The energy group increased sales by 25% to CHF 8.6 billion, while consolidated profits rose by 21% to CHF 413 million. The Board of Directors is proposing an increase in the dividend from CHF 24 to CHF 28 per registered share.

Energy services provider Atel, based in Olten and active throughout Europe, brought the 2005 financial year to a successful conclusion. The Atel Group increased sales by 25% to CHF 8.6 billion in 2005 (2004: CHF 6.9 billion), assisted by rising energy prices as well as higher volumes in energy trading and distribution. These results exceeded expectations. Performance in the areas of trading and distribution was particularly encouraging: European trading business achieved excellent results. In the Energy Services segment both corporate groups – GAH and AIT – substantially improved their operating results in the 2005 financial year. Amended accounting regulations, extraordinary income from disposals and positive trends in financial investments also contributed to an encouraging result.

Consolidated earnings before interest and tax (EBIT) rose by 10% to CHF 541 million. Atel generated group profits of CHF 413 million in 2005, 21% more than the previous year (2004: CHF 341 million). Growth and acquisitions increased the workforce by some 500 to 8,400.

Energy segment: successful in trading and distribution In European trading Atel’s good positioning and quick reactions to changes in the market enabled it to achieve excellent results. Furthermore Atel successfully expanded its position in trading and distribution in all regions of Europe. Italy remains Atel’s most important market, followed by the Central and Eastern Europe market, Switzerland, Germany and France. The Csepel power station in Hungary and ECKG, its counterpart in the Czech Republic, achieved high availability levels and good results. This successful development compensated for the effects of long production stoppages, higher transport costs and other extraordinary burdening factors on the segment result. 

Sales by the Energy segment grew by 29% to CHF 7.0 billion (2004: CHF 5.5 billion). EBIT fell by 6% to CHF 466 million in consequence of the negative factors mentioned above, but additional financial earnings more than made up for the effect on the segment result: this reached CHF 365 million, as against CHF 344 million the previous year. Electricity delivery volumes rose by 8% to 98 billion kilowatt-hours (2004: 91 billion kWh). In addition, Atel conducted futures transactions with standard products to a total volume of 150 billion kilowatt-hours last year, equivalent to a sales value of CHF 8.3 billion. Trading profits from these transactions, which are included in net sales, reached CHF 41 million (2004: CHF 15 million). 

Energy Services segment: operating progress The Energy Services segment achieved substantially improved operating results in the last twelve months. The GAH Group in Heidelberg and the Atel Installationstechnik (AIT) Group in Zurich generated joint sales of CHF 1.6 billion in 2005, 10% more than the previous year. Operating earnings (EBIT) reached CHF 65 million, as against CHF 21 million in 2004. The operating improvements were partly cancelled out by increased tax charges. Segment earnings rose by over 90% to CHF 25 million (2004: CHF 13 million). 

2006: continued growth In the current year Atel again hopes to increase sales in the Energy and Energy Services fields. In view of advancing liberalisation and the slow-down in the rate of increase in energy prices, it will be far from easy to repeat the encouraging operating results of 2005.

Aare-Tessin Ltd. for Electricity Corporate Communications 

NB: Atel will present detailed figures at the conference for balance-sheet media in Olten on 15 March 2006.  The 2006 Annual General Meeting will be held on 27 April 2006 in the Stadthalle, Olten.

 

Atel Group200320042005
        
Net sales (CHF billion)5.36.98.6
     Energy (CHF billion)3.85.57.0
     Energy Services (CHF billion)1.51.41.6
Energy sales (TWh)689198
Earnings before interest and tax
(EBIT) (CHF million)
421
493
541
Group profit (CHF million)272341413
Dividend per share (CHF)222428
Employees810578728368
        

 

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 distribution 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.