Very good operating result - Great strides in strategic projects
Annual results 2010
Income before interest and income taxes increased by 19 % to CHF 163 million. Pre-tax income is negatively impacted by currency factors and amounts to CHF 106 million (- 5 %). Group profit in the previous year included an extraordinary tax benefit and thus fell in 2010 by 28 % to CHF 80 million. These results exceed the expectations. This is all the more impressive given the low prices in 2010 which had a negative effect on margins.
Already in the middle of the year, the euro lost around 10 % of its value against the Swiss franc. It weakened by a further 6 % or so in the second half of the year. These developments in exchange rates represent a big challenge for Repower as it transacts more than 80 % of its business in euros.
The Board of Directors will propose the payment of an unchanged dividend of CHF 8 per bearer share or participation certificate to the Annual General Meeting.
Total operating revenue of the Repower Group rose by 16 % to CHF 2.267 billion in 2010. Electricity and gas turnover (including consumption at the Teverola gas-fired combined cycle power plant) totalled just under 20 TWh and around 450 million m3 respectively.
Headway in market development
In 2010 Repower once again made great strides in implementing its strategy. Acquisition of the sales company Elcomex EN opened up access to the Romanian market. For Repower, this represents a market share of around 6 % in Romania among customers who can freely select their electricity provider. The idea of giving small and medium-sized energy supply companies the opportunity to 2 / 4 generate their own energy through a project investment company without these companies having to do their own project development or enter the international market met with great interest.
Own generation capacities to be further expanded
Good progress was made in various projects aimed at expanding the company's own generation capacities. Shortly before the end of the year, the concession municipalities Poschiavo and Pontresina overwhelmingly voted in favour of granting the concessions for the 1,000 MW pumped storage power plant ?Lago Bianco?, thus clearing a major hurdle for the project. This was also the case for a Repower pumped storage power plant in Italy: the first hurdles in the consultation and approval process were also cleared for the project in Campolattaro with an installed capacity of 540 MW. The project to set up a highly efficient combined cycle power plant on the site of the chemical park in Leverkusen was also announced in the reporting year. The Brunsbüttel and Saline Joniche coal power plant projects forged ahead. Three new wind farms in Germany and Italy contributed to a substantial increase in proprietary wind power generation. Repower generates 90 GWh of electricity from wind power, which is more than is currently generated by all of the wind farms installed in Switzerland combined. Construction will also start on another Repower wind farm in Lucera (Italy) with an installed capacity of 26 MW. Intense efforts are also underway on the concession project for the ?Chlus? hydropower plant near Landquart (Switzerland) and the construction work on the ?Taschinas? hydropower plant in Lower Prättigau (Switzerland) has come so far that the new facility will be connected to the grid this spring.
It can also be said that the renaming of the Group which was completed in April 2010 - from Rätia Energie to Repower - has been very well-received. The new name of the Group became established in a short period of time.
2011 is likely to be difficult and very demanding for the industry as a whole and hence for Repower. The market uncertainties will continue and it is difficult to say how prices will change given the current developments in nuclear energy. This is even more true for energy policy, which is beset by additional uncertainties. There also continue to be regulatory uncertainties in many markets. "Given these conditions, we assume that we will close out 2011 at a lower level than in 2010 both in terms of EBIT and profit," says Repower CEO Kurt Bobst about expectations for the current year. It also needs to be taken into account that the special effects brought about by the income from the sale of a property in Samedan and the sale of aurax electro ag will also be eliminated in 2011.
The right positioning
Repower continues to be in a good starting position with its strategy for the future. Kurt Bobst: "The difficult conditions also show, on the other hand, that we are well-positioned with our strategy of clearly concentrating on selected key markets and consistently relying on our expertise as an integrated energy company." Also the fact that Repower relies on a generation and project 3 / 4 portfolio that is technologically and geographically diversified has proven to be the right strategy - particularly in light of current developments.
The 2010 Annual Report can also be downloaded from www.repower.com/en/group/investorrelations/financial-reports/. For the first time Repower is also publishing an online report with various interactive functions.
Repower is an international energy company headquartered in Poschiavo, Switzerland. It has further offices in Klosters, Ilanz, Bever, Landquart, Zurich, Milan, Dortmund, Prague, Sarajevo and Bucharest. Repower generates operating revenues of around CHF 2.3 billion through the sale of some 20 billion kilowatt hours (kWh) of electricity as well as the sale of gas. Repower also operates as an international energy trader, working all over Europe from trading floors in Poschiavo, Milan and Prague. Repower employs around 650 people, plus 30 trainees in Switzerland and 420 agents in Italy. More than 400 of Repower's staff are employed in Graubünden.
Repower generates an average of around 2,200 million kWh of electricity a year at its own plants in Graubünden, Switzerland, in Italy and in Germany. The company also owns an interest in Kraftwerke Hinterrhein AG, and markets the entire energy package of Grischelectra AG.
In south-eastern Switzerland, Repower is the leading energy supply company. In Italy, Germany and Romania, the company sells electricity to medium-sized enterprises and public corporations, in Italy also supplying them with gas.