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First three quarters of 2013 in line with expectations
In the first nine months of 2013, Alpiq generated a consolidated net revenue of CHF 6,990 mil-lion (prior year1): CHF 9,680 million) and EBITDA of CHF 544 million (prior year1): CHF 894 mil-lion). EBIT amounted to CHF 336 million (prior year1): CHF 459 million), while Group profit to-talled CHF 126 million (prior year1): CHF 173 million). The main reasons for these lower figures are the redimensioning of business operations, the persistently difficult market conditions, the planned annual audit and the unscheduled interruption of production at the Gösgen nuclear power plant. Net debt declined further to CHF 2.0 billion (prior year: CHF 4.1 billion), which was mainly due to the sale of interests in Società Elettrica Sopracenerina SA and Romande Energie Holding SA. Alpiq's liquidity remains high at CHF 2.5 billion.
The generated results are in line with expectations. Alpiq's wholesale business in Central Europe was successful. In addition, production volume for new renewable energies was significantly higher than in the first nine months of the previous year. There was a continued positive effect from the cost-cutting measures initiated in 2011 and 2012.
In Switzerland, the results were adversely affected by investments aimed at increasing safety in the generation of nuclear power as well as the above-mentioned reduced availability of the Gösgen nuclear power plant. Marketing volumes for the remaining power plant portfolio and long-term purchase agreements stayed in line with the prior year, albeit at lower prices. These effects were partly compensated for by optimisation activities in the trading markets. Outside Switzer-land, there was a decline in results for thermal production, primarily due to lower clean spark spreads and a reduction in the allocation of CO2 certificates.
One-time effects include legal damages awarded for the system service provider costs unlawfully charged in Switzerland in 2009 and 2010.
Lower operating result expected compared to prior year
As previously announced, Alpiq anticipates a lower operating result for the full-year 2013 in comparison with 2012 due to the reduced size of the business portfolio following divestments, regulatory adjustments, and lower electricity prices. The current operating result is influenced primarily by higher forward prices which were traded on the electricity market two to three years ago. Electricity sales achieved up until now were fixed at significantly higher values than current levels. The drop in price has a direct impact on the cost-effectiveness of the power sta-tions and will therefore affect profitability over the coming years. If these prices remain at this low level in the longer term, this could have an impact on the plants' intrinsic value. Alpiq is therefore counting on a sustainable energy policy in Switzerland.
Power plants in Kladno and Zlín will not be sold
Alpiq has taken the decision not to sell the two thermal power plants at Kladno and Zlín in the Czech Republic, as it makes better business sense, under current market conditions, to retain the two plants in the Alpiq portfolio.
1 Restated (IFRS 10/11; IAS 19 revised)
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