BKW Annual General Meeting
Solid operating result - BKW well-equipped for the future
2 Documents
Bern (ots)
At the Annual General Meeting in Berne, shareholders of BKW Inc. (BKW) were presented with solid results for fiscal 2012. The Annual General Meeting approved the 2012 annual and consolidated financial statements and voted in favour of a dividend payment of CHF 1.20 per share (previous year: CHF 1.00). Shareholders also elected Roger Baillod 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 significantly higher operating profit year-on-year. At CHF 2,860.4 million, consolidated operating revenue was 8.6% above the prior-year figure. Persistently low market prices, declining electricity sales and special provisions recognised for new power plants had a negative impact on net profit, which closed the year at CHF 134.6 million.
Tapping new market opportunities and adjusting the organisational structure
BKW's main priority is and remains the reliable and ecological supply of electricity to its customers. In 2012 the BKW Group began implementing its new BKW 2030 strategy, in consideration of the Federal Council's energy policy and with a view to strengthening the Group's market position. In this context, various hydro power projects in Switzerland were driven forward and several new renewable energy facilities were acquired abroad. Hydro and wind power will remain the focus for future investments in Switzerland and neighbouring countries. Revenue from Mühleberg nuclear power plant will contribute to funding this expansion drive. Work on the financial analysis is proceeding according to plan, with a view to providing a basis for the bottom-line and investment decision to be made at the end of 2013 on the plant's continued operation. The Groupwide productivity enhancement and cost-cutting programme is also on track.
The vertical integration business model has proved itself even in times of change and provides the basis for the successful exploitation of the business opportunities emerging in a rapidly-changing environment. Besides the classical energy supply business, new business opportunities will open up for BKW as a service provider, due both to the increasingly complex situation caused by the growth in decentralised production from renewable energies and to the rise in demand for energy efficiency. In this context BKW will be able to further develop its grid and installation business and deliver innovative solutions. To address the challenges of the new market conditions optimally and flexibly, the BKW Group is adjusting its organisational structure in line with the new BKW 2030 strategy.
Outlook
BKW does not expect any change in the challenging market environment in the current financial year, with energy prices set to remain low and sustained pressure on margins in the international markets. These factors, coupled with regulatory requirements and a persistently strong Swiss franc, will also impact the operating result for 2013. The full impact of efficiency enhancements generated by the cost reduction measures will not yet be felt. Taking all these factors into account, BKW expects to end 2013 with operating profit before depreciation and impairment (EBITDA) and net profit on a par with the figures reported for 2012.
Shareholder base and election to the Board of Directors
Last year the number of registered shareholders dipped from around 8,650 to approximately 8,400. The Annual General Meeting elected Roger Baillod to the Board of Directors for the current term of office until the 2015 Annual General Meeting, as successor to Ueli Dietiker who is standing down. Baillod will bring his know-how as a long-serving CFO of an international group to the BKW Board of Directors, further consolidating the company's market position. The 2012 Annual Report and Financial Report can be downloaded from:
www.bkw-fmb.ch/financialreport12
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