Outstanding results - strong growth
Energy services provider Atel, based in Olten and active across Europe, closed 2006 with outstanding results, increasing turnover by 32 percent to CHF 11.3 billion (2005: CHF 8.6 billion) and posting a 104 percent rise in consolidated operating profit (EBIT) to CHF 1106 million. This strong growth was driven by the increase in energy sales, consistently high energy market prices, stable production costs and skilful exploitation of market opportunities. In the Energy Services segment, the GAH and AIT groups also recorded higher turnover and better results thanks to the favourable economic climate. In addition to successful operational performance the Atel Group also generated sizeable special revenues, primarily from participations in associated companies as well as the reversal of impairments for the Swiss production portfolio due to sustained high-level electricity prices. EBIT, i.e. operating profit excluding special income, rose by 43 percent to around CHF 774 million.
Record Group profit
The successful operating business and above-mentioned special effects resulted in a record Group profit of CHF 899 million, 118 percent higher than the previous year. Excluding the special effects, Group profit rose by 52 percent to CHF 630 million. With an equity ratio of 38 percent compared to 34 percent in 2005, the Atel Group has further strengthened its financial structure despite heavy expansion of business volume. Due to the increase in liquidity, acquisitions and a rise in trading activities, the balance sheet total was up from CHF 7.3 billion to CHF 9.3 billion. The average number of employees increased by 93 to 8461.
The result posted by the Energy segment made a significant contribution to the successful Group result. Atel expanded its trading and sales activities in all regions of continental Europe. Power plants in Switzerland, Italy, the Czech Republic and Hungary achieved high-level availability while costs remained stable. European trading in 2006 once more recorded better results than the previous year. Electricity sales across the Atel Group climbed year-on-year by 18 percent to 116 TWh. At CHF 9716 million, energy turnover in the Energy segment was 38 percent higher year-on-year. Revenue from financial futures transactions in standard products was 65 percent higher at CHF 13.7 billion, with traded volume rising by 35 percent to 202 TWh. As in previous years, the profit of around CHF 59 million (2005: CHF 41 million) achieved from trading in these products is recorded under turnover.
Energy Services segment
The Energy Services segment reported a 4 percent rise in consolidated turnover to CHF 1626 million. The German GAH Group in particular achieved a marked rise in turnover due to the acquisition of major orders. Growth in the AIT Group in Zurich was achieved largely through first-time consolidations. On a comparable basis i.e. based on the same scope of consolidation and in local currency, the segment recorded an increase of around 8 percent in turnover.
2007: Expansion of production capacity - enhanced profitability
In 2007 the Atel Group is aiming for sustained growth through expansion of its European trading and sales activities as well as through targeted acquisition, primarily in the production area. Atel is also planning to improve profitability in the Energy Services segment. The Atel Group expects to close 2007 yet again with higher turnover and earnings below the high operating values of 2006.
Aare-Tessin Ltd. for Electricity Corporate Communications
Overview Fiscal 2006
|Net turnover (CHF bill.)||6.9||8.6||11.3|
|Energy (CHF bill.)||5.5||7.0||9.7|
|Energy Services (CHF bill.)||1.4||1.6||1.6|
|Energy sales (TWh)||91||98||116|
|Earnings before interest and taxes (EBIT) (CHF mill.)||493||541||1106|
|Group profit (CHF mill.)||341||413||899|
|Dividend per share (CHF)||24||28||40|
Note: Atel will present detailed results at the annual media conference in Zurich on 14 March. The 2007 General Meeting of Shareholders will be held in the Stadthalle, Olten, on 26 April 2007.