Preliminary 2013 Results
Strong operating performance - high provisions and impairment charges required
Bern (ots)
In an exceptionally challenging economic and regulatory environment, the BKW Group posted very good operating income of around CHF 500 million for the 2013 financial year. However, for the purpose of the year-end financial statements, distortions on the electricity market necessitated the recognition of major provisions and impairments on production facilities. As a result, the Group has had to record a net loss in the CHF 200 - 250 million range. Excluding these exceptional charges, a net profit of around CHF 150 million is expected for the 2013 financial year.
In 2013 BKW posted consolidated operating revenue of around CHF 2,700 million: 5% below the prior-year figure. Business performance was impacted by a highly challenging market environment, low electricity prices and the persistently strong Swiss franc. BKW expects to close the year with very good adjusted operating income before depreciation, amortisation and impairment (EBITDA) of around CHF 500 million and an adjusted operating profit (EBIT) of around CHF 300 million. The general environment and conditions governing the energy market remain exceptionally challenging and are affecting BKW's current and future earning power. When drawing up the 2013 financial statements, BKW tested its production facilities for impairment. Based on estimated future market developments, BKW will recognise provisions for onerous energy purchase contracts and impairments for production facilities in Switzerland and abroad. This primarily concerns newer facilities, regardless of technology or location. The adjustments mean a charge of around CHF - 500 million on the operating results. Reported EBITDA is expected to be around CHF 300 million, while reported EBIT is expected to be in the CHF -150 to -200 million range. Adjusting for tax effects, BKW expects to post a net loss of CHF 200 - 250 million.
This is a provisional estimate contingent on further findings in the course of finalising the year-end statements and from the audit by external auditors.
Due to the favourable adjusted annual profit of around CHF 150 million, an unchanged dividend of CHF 1.20 will be proposed to the Annual General Meeting on 9 May 2014.
With a view to future market positioning, BKW aims to continue leveraging the advantages of vertical integration and a presence right along the energy supply chain, and to extend this reach by expanding into new business fields in the services sector.
This media release replaces the media release on annual results planned for 26 February 2014. Detailed information on the 2013 financial year will be presented along with the BKW Group's Annual and Financial Report at the Annual Press Conference on 26 March 2014.
The statements contained in this press release constitute expectations and forward-looking statements. Because these statements are subject to risks and uncertainties, actual future results may differ materially from those expressed or implied by the expectations and statements. This media release is issued in German, French, English and Italian. The German version is authoritative.
Financial Calendar
Annual Press Conference on the 2013 Financial Results: 26 March 2014
Annual General Meeting: 9 May 2014
2014 Interim Report: 11 September 2014
Contact:
Antonio Sommavilla, tel. nr.: 058 477 51 07
antonio.sommavilla@bkw.ch