Operating results in line with expectations

Karlsruhe. In the first nine months of the current fiscal year 2012, EnBW Energie Baden-Württemberg AG increased its revenue by 4.4% to € 14.4 billion. A sharp fall in revenue in the electricity generation and trading segment (down 26.7%) was offset by equally sharp revenue growth in the electricity grid and sales segment (up 15.8%), gas segment (up 28.8%) and energy and environmental services segment (up 10.6%). The decrease in revenue in the electricity generation and trading segment was primarily attributable to the 13% fall in unit sales to 101.7 billion kilowatt-hours, mainly as a result of the fall in trading activities owing in part to the shutdown of two nuclear power plants. Revenue growth in the other segments is largely due to higher revenue under the German Renewable Energies Act (EEG), a rise in gas unit sales thanks to increased gas trading activities as well as the volume growth seen in the contracting business.

Earnings before interest, taxes, depreciation and amortisation adjusted for non-operating effects (adjusted EBITDA) amounted to € 1,927.9 million in the reporting period, a drop of 2.0% in comparison to the first three quarters of the prior year. This was due, among other things, to the sharp fall in earnings in the electricity generation and trading segment. After eliminating non-operating effects, adjusted group net profit came to € 598.2 million for the first nine months of 2012.

Cash flow from operating activities amounted to € 1,051.1 million in the first nine months of the current fiscal year, down 32.1% on the comparable prior-year period. This is largely attributable to the increase in the balance of trade receivables and payables due to an insufficient level of cost allocations under the EEG, which will not be offset until 2013.

“In light of the structural challenges and the much more difficult market environment, business development of the EnBW group in the first nine months of 2012 was in line with our expectations. Falling prices on the wholesale markets continue to present a burden on earnings. By contrast, the increase in network user charges and higher revenue from renewable energies has had a positive effect, due to a higher output of electricity generated by hydro-electric and wind power,” commented Thomas Kusterer, CFO of EnBW.

Adjusted net debt fell by 5.9% compared to year-end 2011 to € 8,289.2 million as of 30 September 2012. This was chiefly due to the capital increase successfully performed in July 2012 as well as divestitures. The equity ratio increased from 17.1% to 20.3% compared to year-end 2011.

“EnBW’s good credit standing must be maintained. We must use our FOKUS efficiency programme to create financial headroom for future-oriented investments. By the end of 2014, we will have developed the necessary efficiency measures allowing us to realise the planned improvements in earnings amounting to a total of € 750 million p.a. as of 2015,” said Thomas Kusterer.