BKW Annual General Meeting
Broad-based production portfolio with renewable energies, energy efficiency and smart grids as the basis for future energy security
2 Documents
Bern (ots)
At the Annual General Meeting of BKW Inc. (BKW) in Berne, shareholders were presented with a 2011 financial year impacted by special charges and a difficult market environment. The Annual General Meeting approved the 2011 annual and consolidated financial statements and voted in favour of a dividend payment of CHF 1.00 per share (previous year: CHF 2.50). Shareholders also elected Kurt Rohrbach and Kurt Schär to the Board of Directors for the current term of office until 2015.
In last year's challenging economic and regulatory environment, the BKW Group generated lower operating income year-on-year. At CHF 2,632.8 million, consolidated operating revenue was 5.6% below the prior-year figure. Low market prices coupled with the strong Swiss franc, lower financial result, and extraordinary impairment charges and provisions for new fossil-fuelled thermal power plants, led to a net loss of CHF 66.2 million despite the positive contribution made by Swiss supply business.
Focus on energy efficiency and renewable energies
BKW's main priority is and remains the reliable, ecological and cost-effective supply of electricity to its customers. In view of the market trend and the political and social framework conditions, the BKW Group has drawn up a new Group strategy. The aim is to drive forward consistently the expansion of production from renewable energies needed to make up for lost output from Mühleberg nuclear power plant. The main focus is on hydro power and wind. At the same time, BKW is developing innovative offerings and models to motivate customers and support efforts to increase energy efficiency. In view of its changed role as a provider of a comprehensive range of energy services, BKW is also further developing its grid infrastructure and deploying innovative new technologies to prepare for the challenges of a modern, increasingly decentralised production mix as well as the integration of decentralised production (smart grids). Within the strategy's horizon, BKW will refrain from acquiring additional fossil-fuelled thermal power generation projects. In the interests of security of supply and in keeping with the Swiss government's 2050 energy strategy, BKW reserves the right to construct gas-fired power plants which have already been planned, provided their profitability is assured.
Outlook
BKW expects no change in the challenging market environment in the current financial year, with energy prices remaining low and greater margin pressure on international markets. Coupled with regulatory requirements and a persistently strong Swiss franc, this will also weigh down the operating result for 2012. The full impact of efficiency enhancements generated by the cost reduction measures will not yet be felt. Taking all these factors into account and given the ongoing uncertainties, also on financial markets, operating profit before interest, depreciation and impairment (EBITDA) and net profit for the next financial year may be significantly below the adjusted figures for 2011. The Group's reorganisation to a holding structure will also be implemented according to plan in the current financial year.
Shareholder base and elections to the Board of Directors
Last year the number of shareholders fell to around 8,700. The Annual General Meeting elected Kurt Rohrbach and Kurt Schär to the Board of Directors for the term of office until the 2015 Annual General Meeting. With his extensive expertise and long track record as CEO of BKW, Kurt Rohrbach will help to drive forward implementation of the new Group strategy in his new function as second Vice Chairman. The BKW Board of Directors has also been supplemented by another experienced business manager, Kurt Schär, who brings to the table his know-how in the field of modern electricity applications and decentralised production.
The 2011 annual report and financial report can be downloaded from: www.bkw-fmb.ch/jahresbericht11 www.bkw-fmb.ch/finanzbericht11
Videos of the presentations given at the Annual General Meeting can be viewed online at www.bkw-fmb.ch/generalversammlung from 18:00.
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.
Contact:
Antonio Sommavilla
info@bkw-fmb.ch
031 330 51 07