Atel Group: final results for the first half of 2004

The Atel Group performed ahead of expectations in the first half of 2004, generating continued vigorous growth. This positive result can primarily be attributed to success in the energy business, but in spite of persistent weakness in the construction industry the Energy Services segment posted an encouraging rise in sales. These good results reflect the success of the Group’s corporate strategy. In its principal markets Atel has business operations in distribution and trading, and it has its own generating facilities. This combination enables the company to offer its customers a range of tailor-made products that is supplemented by activities in the other European electricity markets, the Energy Services segment and its own electricity-transmission grid. 

Sales – CHF 3.4 billion, profit – CHF 173 million  The consolidated net sales of the Atel Group rose by 46% in comparison with the corresponding period of the previous year to CHF 3424 million. This growth had a positive effect on the results of group operations: operating profit (EBIT) was up 13% to CHF 213 million. At CHF 280 million, consolidated cash flow was again very high (2003: CHF 285 million). Taking higher taxes into account, group profit at the end of the first half of 2004 (including minority interests) was CHF 173 million, an increase of 26%. 

Energy segment: remarkable growth The high growth in the Atel Group’s sales was due to two developments in the Energy segment: the initial marketing by local distribution company Atel Energia of the Group’s share of Edipower production in Italy, and increased sales volumes in distribution and European trading. The energy business developed successfully in the first half of 2004 in all regions and market sectors: sales in the energy segment were up 60% to CHF 2765 million. In the period under review Atel sold a total of 46.4 TWh of electricity, 49% more than in the first half of 2003. In addition to its traditional physical deliveries, Atel conducted trading transactions with standardised products with a total volume of around 52.3 TWh and a value of CHF 2.4 billion in the first half of 2004 (2003: 29.7 TWh, CHF 1.1 billion). The net profits generated by these transactions totalled CHF 19 million in the first half of 2004 (2003: CHF 3 million). Operating profit in the Energy segment rose to CHF 214 million, an increase of 14% on the previous year’s figure. 

Energy Services segment: slight rise in sales  The Atel-Installationstechnik (AIT) Group in Zurich and the GAH Group in Heidelberg generated joint sales of CHF 660 million in the Energy Services segment, both companies achieving increases of 8% through organic growth. AIT and GAH responded to the difficult market situation in the energy services business by taking restructuring and reorganisation measures, and these are expected to bring their first benefits in the second half of 2004. The Energy Services segment generated an operating profit of CHF 8 million, a slight improvement on the previous year’s figure of CHF 7 million. 

Outlook  For the full year 2004, subject to unforeseen events, Atel expects a significant rise in sales and higher operating profits than last year. 

Aare-Tessin Ltd. for Electricity Corporate Communications  

Note to editors: The complete Interim Report for 2004 is available as pdf document.

Atel Group: key figures

** Average number of full-time equivalent employees