EnBW solidly on track for growth
Development of earnings shaped by enlargement of consolidated group and regulatory changes / non-recurring tax effect raised group profit to 1,125 million euro.
Karlsruhe. In the first nine months of the fiscal year 2007, EnBW Energie Baden-Württemberg AG generated revenue of 10,518 million euro. Compared to the prior-year period, this is equivalent to an increase of 14.1 percent. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 6.4 percent to 1,843 million euro. Earnings before interest and taxes (EBIT) improved by 11.0 percent, reaching 1,281 million euro. Group net profit rose year on year by 526 million euros (+87.8 percent) to 1,125 million euro. This does, however, include an extraordinary non-recurring tax effect of 420 million euro as a result of the 2008 business tax reform act. Without this non-recurring tax income, group net profit would have gone up by 106 million euro or 17.7 percent.
At 1,711 million euro (+ 3.1 percent) adjusted EBITDA, like adjusted EBIT at 1,149 million euro (+ 0.1 percent), virtually matched the figures of the prior-year period. The factors with a positive effect on earnings included the enlargement of the consolidated group thanks to the consolidation of Stadtwerke Düsseldorf AG for the whole year and the full consolidation of Erdgas Südwest GmbH (ESW), as well as the improved operating performance in the energy and environmental services segment. These positive effects partially offset the substantially reduced network user charges imposed by the Federal Network Agency and a noticeable drop in unit sales in the gas segment due to the mild winter. In the electricity segment in which EnBW generated some 80 percent of its revenues in the first nine months of 2007, EBITDA rose by 2.4 percent to 1,593 million euro. Adjusted EBITDA rose 3.5 percent to 1,476 million euro. In the gas segment, on the other hand, EBITDA dropped by 28.1 percent to 183 million euro while adjusted EBITDA dropped to 177 million euro. This is mainly due to the temperature-related drop in unit sales of gas and the reduction in network user charges by the Federal Network Agency.
As a result of the increased EBITDA and the drop in working capital, the operating cash flow rose by 8.8 percent to 1,275 million euro. On the other hand, the operating cash flow was impacted by higher tax payments in the first nine months of 2007. A significant increase in capital expenditures (498 million euro) by EnBW led to a drop in free cash flow by 118 million euro to 843 million euro. Capital expenditures at EnBW are aimed at expanding its generating and distribution facilities.
In the reporting period, EnBW increased its shareholding in Erdgas Südwest GmbH (ESW), Energie Sachsen Ost GmbH (ENSO) and Gasversorgung Sachsen Ost Wärmeservice GmbH Co. KG (GSWK), thus strengthening its position in the markets of Baden-Württemberg and Saxony. These acquisitions increase EnBW’s indirect shareholding in ESW by 28.0 percent to 79.0 percent, in ENSO by 14.4 percent to 64.8 percent and in GSWK by 76.5 percent to 100 percent.
EnBW’s CEO, Hans-Peter Villis: “For the fourth quarter of 2007, EnBW aims to increase profit compared to the prior year in the electricity and energy and environmental services segments. In the gas segment, on the other hand, we forecast a drop compared to the prior-year quarterly result due to the reduced network user charges and tougher competition. We are, however, confident, that we will be able to return a good group result for fiscal 2007.”
Quarterly financial report January to September 2007 at a glance:
|
in
|
1/1 - 9/30/2007
|
1/1 - 9/30/2006 *
|
Variance in %
|
|
|---|---|---|---|---|
|
Revenue
| ||||
|
Electricity
|
in
€ millions
|
1/1 - 9/30/2007
8,367.4
|
1/1 - 9/30/2006 *
6,916.5
|
Variance in %
+ 21.0
|
|
Gas
|
in
€ millions
|
1/1 - 9/30/2007
1,648.6
|
1/1 - 9/30/2006 *
1,945.0
|
Variance in %
- 15.2
|
|
Energy and environmental services
|
in
€ millions
|
1/1 - 9/30/2007
501.9
|
1/1 - 9/30/2006 *
353.7
|
Variance in %
+ 41.9
|
|
Total external revenue
|
in
€ millions
|
1/1 - 9/30/2007
10,517.9
|
1/1 - 9/30/2006 *
9,215.2
|
Variance in %
+ 14.1
|
|
EBITDA
|
in
€ millions
|
1/1 - 9/30/2007
1,843.2
|
1/1 - 9/30/2006 *
1,733.0
|
Variance in %
+ 6.4
|
|
EBIT
|
in
€ millions
|
1/1 - 9/30/2007
1,280.5
|
1/1 - 9/30/2006 *
1,154.1
|
Variance in %
+ 11.0
|
|
EBT
|
in
€ millions
|
1/1 - 9/30/2007
1,145.0
|
1/1 - 9/30/2006 *
1,028.4
|
Variance in %
+ 11.3
|
|
Result of continuing operations
|
in
€ millions
|
1/1 - 9/30/2007
1,067.5
|
1/1 - 9/30/2006 *
604.5
|
Variance in %
+ 76.6
|
|
Group net profit
|
in
€ millions
|
1/1 - 9/30/2007
1,124.6
|
1/1 - 9/30/2006 *
598.7
|
Variance in %
+ 87.8
|
|
Earnings per share **
|
in
€
|
1/1 - 9/30/2007
4.37
|
1/1 - 9/30/2006 *
2.48
|
Variance in %
+ 76.2
|
|
Funds from operations before taxes and financing
|
in
€ millions
|
1/1 - 9/30/2007
1,625.8
|
1/1 - 9/30/2006 *
1,466.6
|
Variance in %
+ 10.9
|
|
Cashflow from operating activities
|
in
€ millions
|
1/1 - 9/30/2007
1,274.9
|
1/1 - 9/30/2006 *
1,172.2
|
Variance in %
+ 8.8
|
|
Free Cashflow
|
in
€ millions
|
1/1 - 9/30/2007
843.4
|
1/1 - 9/30/2006 *
961.2
|
Variance in %
- 12.3
|
|
Capital expenditures on intangible assets and property, plant and equipment
|
in
€ millions
|
1/1 - 9/30/2007
498.4
|
1/1 - 9/30/2006 *
336.0
|
Variance in %
+ 48.3
|
* Figures of the period compared have been adjusted among others due to retrospective changes in accounting methods according to the IFRS
** from continuing activities