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Another rise in turnover
2007 Interim Results of the Atel Group
Higher operating results
The Atel Group, headquartered in Olten and active throughout Europe, has posted good interim results for the first half of 2007. Consolidated turnover amounted to CHF 6.4 billion, corresponding to a year-on-year increase of 15 %. Consolidated operating profit (EBIT) dropped by 2 % or CHF 10 million to CHF 448 million, while Group profit after income tax, including minority interests, fell by 3 % from CHF 359 million to CHF 348 million. Excluding the significant special effects which impacted the 2006 interim results, Atel's consolidated operating profit for the first half of 2007 rose by 17 % and Group profit by 20 %.
Energy segment: Impact of the mild winter
The Energy segment's results for the first half of 2007 were impacted by an extremely mild winter. European market prices initially dropped at the beginning of the year, only to rally strongly later. Within this framework, the Energy segment succeeded in generating a turnover of CHF 5.6 billion (+14 %) in the first six months of 2007. The main reason for this was the increase in volumes and attractive price level, which drove the volume of energy sold up to 61.5 TWh (+2 %). The rise is attributable to revenue from markets in Northern and Western Europe. The markets in Switzerland, Southern Europe as well as Eastern Europe and Trading again made important contributions to sales and profit. The regional remote heating supply business, which is linked to power plants in the Czech Republic, was particularly hard hit by the mild winter temperatures. Another contributing factor was the sharp fall in prices for CO2 certificates for the 2005-2007 period which is drawing to a close. Operating profit (EBIT) for the Energy segment dropped by 6 % from CHF 441 million to CHF 416 million, although the year-on-year comparison is affected by one-off special effects in 2006. Excluding these effects, operating profit for the Energy segment increased by 14 %. Besides traditional physical sales, the volume of standardised products traded with external counterparties by Trading amounted to around 103 TWh, generating revenue of CHF 8.2 billion (previous year 101 TWh and CHF 6.8 billion respectively). Net income from trading in standardised products with third parties amounted to CHF 13 million (2006: CHF 20 million) and, as in previous periods, is recorded under turnover.
Energy Services segment: Further growth
The favourable trend recorded by the Energy Services segment over the past two years was continued in the period under review. Energy Services consists of Atel Installationstechnik-Gruppe (AIT) in Zurich and the GAH Group in Heidelberg, Germany. In addition to the favourable impact of the mild winter, which facilitated order processing, performance was also positively affected by completion of the restructuring measures. The segment once more remarkably increased its contribution to the Group's results, with net turnover up by 22 % from CHF 703 million to CHF 855 million. Excluding changes in the scope of consolidation, and in local currency, turnover rose by 17 %. Consolidated operating profit (EBIT) doubled from CHF 16 million in the first half of 2006 to CHF 32 million. Excluding changes in the scope of consolidation, EBIT rose by 73 %.
Given these positive interim results and an optimistic prognosis for the second half-year, Atel expects to end 2007 with a Group turnover and operating income – adjusting for one-off effects – above the comparable previous-year figures. Given the impact of major special effects on last year's results, the overall result for 2007 will be lower.
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