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1141718400000 | IR Press Release

EnBW-Dividends to rise by 25%

EnBW submits accounts for 2005 financial year
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Pre-tax result tops 1 Bn Euro mark for the first time in the Group’s history / Group profits up by 64 % / Highest dividend in the Group’s history to follow record results

Karlsruhe. The record results expected after the finalisation of EnBW Energie Baden-Württemberg AG’s preliminary results of 19th January 2006 for the 2005 financial year have been confirmed. On the 20th February the supervisory board approved the group accounts presented by the board of directors. According to these, the EnBW Group was able to increase its profit by 64.1 percent over the previous year* to 521.6 million Euros in 2005. The result before tax (EBT) increased by 42.4 percent to 1.081 million Euros in 2005. The profit before tax thus breached the billion barrier for the first time in the EnBW Group’s history.

“Due to our consistent implementation of the TOP FIT cost reduction programme, fewer write offs and a much-improved financial result, between 2003 and 2005 we have succeeded in turning a pre-tax loss of almost 1.1 billion Euros into a profit of nearly the same amount within only two years. Due to the Group’s positive development the board will recommend to the Annual General Meeting and the supervisory board that the dividend be raised. We want to distribute 0.88 Euro per authorised share for the year 2005. This would be the highest dividend in the group’s history for the second time in a row and corresponds to a 25 per cent increase in the dividend”, according to Professor Dr Utz Claassen, Chairman of the EnBW Executive Board.

The result before tax and interest (EBIT) improved from 1.243 billion Euros by 6.1 per cent to 1.319 billion Euros. The result before interest, tax and depreciation (EBITDA) reached a value of 2.054 billion Euros, an historic high in the area of the continuing operations.

* Figures of the period compared have been adjusted due to, among other reasons, retrospective changes to accounting methods according to the IFRS.

Alongside the clearly improved results EnBW was also able to reduce the Group’s debt and to further improve the equity capital rate. “Due to the positive results as well as the consequences of the sale of Group shares the equity capital rate in the balance sheet was raised from the 10 per cent it stood at on 31 December 2004 to 13.2 per cent. Net debts could however be reduced. While they were still 3.94 billion Euros at the end of 2004, they were only 3.28 billion at the end of 2005 and thus 16.6 per cent below the level of the previous year”, explained Dr Christian Holzherr, EnBW’s Chief Financial Officer.

EnBW also markedly increased its sales revenues. The turnover rose by 18 per cent to a total of 10.77 billion Euros in 2005. Sales in the electricity segment rose by 15 per cent to 8.15 billion Euros. Among other reasons, this increase was due to an increase in EnBW Tradinggesellschaft sales. Increased electricity prices as a result of higher costs contributed only a small amount to the improvement in results. Gas sales rose by 36.4 per cent to 2.1 billion Euros. If the consolidation effect of the acquisition of ENSO Erdgas GmbH is ignored, gas sales increased by 25.4 per cent. In addition to increased gas supply prices, passed on to the end consumer, markedly higher sales in the gas trading business also made a significant contribution. Sales in energy and environmental services rose by 4.6 per cent to 517.4 million Euros.

“At the beginning of our reorganisation and reorientation processes no one would have dared to think that this - also in comparison to the competition - unusually gratifying development, would have been possible. It is underpinned in content by capital, clear values and value orientation, that is to say there is a comprehensive consistency between our vision, our company mission statement, our branding and our strategic and financial planning culminating in the measures taken in our operational planning. Building on our strong results and in conjunction with our strength in innovation we want to improve our position in the market by organic growth and acquisition”, says Claassen.

In the 2005 financial year EnBW has already increased investment by 31 per cent to a total of 547 million Euros. About 65 per cent of this investment was made in the electricity segment, in particular in the upgrading of power stations and electricity distribution facilities. In addition, in 2005 EnBW raised its stake in Energieversorgung Niederösterreich (EVN) from about 13 to just under 30 per cent. Through its acquisition of RWE’s 15 per cent stake in the Czech Pražská. energetika Holding a.s., EnBW increased its stake in Pražská energetika Holding a.s. from 34 per cent to 49 per cent now. Pražská energetika Holding a.s. is a majority shareholder in the Prague energy company Pražská Energetika a.s. with a 51 per cent stake.

Alongside its finance-oriented accounting, EnBW regards its stringent knowledge management as an important factor of the company’s success. Therefore, for the first time, EnBW has also presented a knowledge balance sheet for 2006, and it has also been discussed in the annual report.

EnBW is also a pioneer in the introduction of an environment management system. Among the large energy supply companies EnBW was the first to introduce an environment management system complying with ISO 14001 throughout the Group.

Overview of EnBW group January till December 2005:
in
2005
2004 *
Variance in %
External sales
Electricity
in
Mio. €
2005
8,150.2
2004 *
7,088.9
Variance in %
+ 15.0
Gas
in
Mio. €
2005
2,101.7
2004 *
1,540.6
Variance in %
+ 36.4
Energy and environmental services
in
Mio. €
2005
517.4
2004 *
494.8
Variance in %
+ 4.6
External sales, total
in
Mio. €
2005
10,769.3
2004 *
9,124.3
Variance in %
+ 18.0
EBITDA
in
Mio. €
2005
2,054.3
2004 *
2,044.5
Variance in %
+ 0.5
EBIT
in
Mio. €
2005
1,318.5
2004 *
1,242.5
Variance in %
+ 6.1
EBT
in
Mio. €
2005
1,080.8
2004 *
759.1
Variance in %
+ 42.4
Result of continuing operations
in
Mio. €
2005
522.5
2004 *
357.7
Variance in %
+ 46.1
Group net profit
in
Mio. €
2005
521.6
2004 *
317.8
Variance in %
+ 64.1
Earnings per share **
in
2005
2.17
2004 *
1.57
Variance in %
+ 38.2
Operating Cashflow
in
Mio. €
2005
1,329.9
2004 *
1,545.7
Variance in %
- 14.0
Free Cashflow
in
Mio. €
2005
1,070.6
2004 *
1,330.8
Variance in %
- 19.6
Capital expenditure on intangible assets and property, plant and equipment
in
Mio. €
2005
547.0
2004 *
417.7
Variance in %
+ 31.0
Return on Capital Employed (ROCE)
in
%
2005
13.4
2004 *
11.7
Variance in %
+ 14.5
Cost of capital rate (WACC) before taxes
in
%
2005
9.0
2004 *
9.0
Variance in %
--
Average capital employed
in
Mio. €
2005
9,353.7
2004 *
9,400.8
Variance in %
- 0.5
Value added
in
Mio. €
2005
407.5
2004 *
251.9
Variance in %
+ 61.8

* Figures of the period compared have been adjusted among others due to retrospective changes to accounting methods according to the IFRS
** from profits

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EnBW Energie Baden-Württemberg AG
Durlacher Allee 93
76131 Karlsruhe
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