EnBW’s earnings power continues to be satisfactory

Karlsruhe. In the first nine months of the current fiscal year, EnBW Energie Baden-Württemberg AG successfully increased its revenue after deduction of electricity and natural gas tax by 10.9 per cent to € 11,661 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 6.6 per cent to € 1,966 million. Earnings before interest and taxes (EBIT) increased by 3.2 per cent, to € 1,321 million.

Adjusted for extraordinary effects, adjusted EBITDA rose by 13.9 per cent to € 1,950 million and adjusted EBIT by 19.0 per cent to € 1,367 million. This increase is primarily the result of the positive developments in the electricity segment. EnBW generated roughly 81 per cent of its revenue in this segment from January to September 2008. Following a decline in unit sales in the trading area (-15.2 per cent), unit sales of electricity fell by a total of 4.6 per cent. Unit sales with industrial customers and retail customers, however, grew slightly by 0.9 and 5.1 per cent respectively as a result of successful selling activities.

Group net profit in terms of the profit shares attributable to the equity holders of EnBW AG fell by 31 per cent in the first nine months of the current fiscal year compared to the prior-year period to € 778 million. Adjusted for extraordinary effects, however, adjusted group net profit increased by 41 per cent to € 818 million. This is attributable to the good development of earnings, which was driven by an overall improved generation margin and unscheduled reimbursements for reductions of water supply fees in the electricity segment and, in the gas segment, by a colder winter than in the prior year. The intensifying competition and cost increases in sales and distribution, however, led to a drop in margins. With regard to the regulatory framework, the further reduction in network user charges imposed by the Federal Network Agency placed a burden on earnings.

With € 775 million, EnBW invested over € 276 million or 55 per cent more in the first nine months of the year than in the comparative prior-year period. EnBW made some 75 per cent of these capital expenditures in the electricity segment. Spending here focused on the expansion of the power stations and distribution plants.

Hans-Peter Villis, CEO of EnBW: “EnBW’s earnings power has been satisfactory in the first nine months of 2008. We also expect earnings to develop positively for the year 2008 as a whole.”