BKW significantly increases revenue and profit Dienstag, 03. September 2019 - 07:00

With the profitable expansion of its Services business and its strong international trading, BKW increased revenue by 7% over the previous year’s period to reach CHF 1,370 million. The net profit increased by 59% to reach CHF 201 million. Operating cash flow grew by 27% to CHF 132 billion. The transformation of BKW towards a leading energy and infrastructure service provider is progressing well.

* EBIT for the first half of 2018 without one-off effect from the change in benefit plan of the BKW pension fund

The operating result (EBIT) for the first half of 2019 was CHF 207 million, 21% higher than the corresponding figure last year – despite the negative effect of electricity prices, which remain significant (CHF -60 million). During the first half of 2018, the reported EBIT was positively impacted by a special effect from benefit plan changes in the BKW pension plan. Net profit for the first half of 2019 was CHF 201 million, 59% higher than the previous year. The comparable figure even increased by 135%. This increase in net profit is attributable to the strong operating result as well as the positive performance of the decommissioning and waste disposal funds. Operating cash flow grew by 27% to CHF 132 million.

In the first half of 2019, BKW invested a total of CHF 141 million. Around half of this was invested into the strategic growth areas of Services and renewable energies.

Services business continues its profitable trajectory

Once again, the first half of 2019 was marked by transformation and growth. BKW is advancing toward its goal of being a leading energy and infrastructure service provider. More than two thirds of its approximately 8,000 employees work in the Services business area (Building Solutions, Engineering and Infra Services). Meanwhile, Services showed growth in the two-figure range: It contributes around CHF 475 million (+20%) to BKW’s total operating income – around one third. EBIT increased disproportionately (+29%). BKW’s international network now consists of over 100 companies.

Energy: negative electricity price impact more than offset

The Energy business area encompasses the areas of production, trading and sales. Due to the electricity sales that were hedged three years ago, BKW had to absorb negative energy price effects of around CHF 60 million during the first half of 2019. These negative energy price effects could, however, be more than compensated for through successful trading, an increase in market share among business customers and cost-cutting measures. These successful measures saw an increase in EBIT of the Energy business by 59% to reach CHF 115 million.

In the first half of 2019, BKW continued with its realignment of the Energy business. This realignment includes the decommissioning of the Mühleberg Nuclear Power Plant. The plant will be taken off the grid on 20 December 2019. The project is on schedule and on budget. The first decommissioning of a nuclear power plant in Switzerland stands as a symbol for the successful transformation of BKW.

Grid: stable contribution to results

The Grid business area builds, operates and maintains BKW’s own distribution grid system. At CHF 265 million, revenue from Grid business was 5% lower than the previous year’s figure. This decrease was largely due to lower power volumes as a result of weather conditions, and lower costs associated with upstream networks. The operating result of CHF 91 million remains at an overall stable level.

Outlook

BKW will continue its strategy in the second half of 2019 with the rapid expansion of its Services and Wind business. On the basis of its highly positive half-year results, BKW has increased its previously communicated financial forecast for the present financial year. It now expects an operating result in the CHF 350 to 370 million range (previously: CHF 320 to 340 million).