The Atel Group has posted good results for the 2008 financial year, achieving a new record high of CHF1,281 million (+2.2%) in operating income (EBITDA). At CHF1,001 million (-0.4%), EBIT was on a par with the high figure recorded in the previous year.

Challenging market environment in 2008

The Atel Group has achieved good results for fiscal 2008: Energy sales by the Olten-based energy services provider amounted to 96 TWh, generating Group revenue of CHF12.9 billion. The 4% drop compared to 2007 is attributable to lower liquidity on the energy markets and targeted adjustments made to the trading and sales activities. At CHF1,281 million, EBITDA was 2% higher than the previous-year value, while earnings before interest and tax (EBIT) were on a par with the 2007 figure at CHF1,001 million (-0.4%). The outstanding performance of the Energy Services segment was a key contributor to this result. Group profit was 5.8% lower , chiefly due to the lower valuation of financial holdings and to exchange rate losses. At the Annual General Meeting to be held on 23 April 2009, the board of directors will be proposing a dividend of CHF10 per share. In the previous year a reduction in par value of CHF10 per share was carried out instead of a dividend payment.

Difficult market environment for the Energy segment

The Energy segment enjoyed favorable conditions in the first half of 2008, with rising energy prices resulting in an increase in the half-year figures. In the second half-year, European electricity markets were gripped by the turmoil on financial markets coupled with a fall in raw material prices, leading to a sharp drop in the number of trading partners, market liquidity and hence trading opportunities.

Forward prices for electricity trading dropped by around 35% versus July 2008. Growth was also slowed down by regulatory constraints coupled with rising auction costs for cross-border trading and sales. Additional negative factors affecting the results were a further reduction in the fair value of the decommissioning and disposal funds for nuclear energy facilities, as well as exchange rate losses. For the full year the Energy segment recorded revenue of CHF10,712 million (-6.9%), and EBIT of CHF867 million (-5.7%).

Outstanding performance by the Energy Services segment

The Energy Services segment benefited from a good order volume and a high appetite for investment in the Swiss and German markets. Strong demand was shown particularly for services related to energy distribution and large power plant construction. Atel Installationstechnik Ltd. (Zurich) and the GAH Group (Heidelberg) grew consolidated revenue by CHF283 million or 14.4% to CHF2,242 million, while EBIT for the segment rose by around 56.5% to reach a new record high of CHF133 million.

Atel merged with EOS at the end of 2008

At the end of 2008 Atel merged with EOS of Western Switzerland, with EDF contributing the rights to its 50% interest in the Emosson storage power station. On 1 February 2009, the holding company was renamed Alpiq Holding Ltd. with registered office in Neuchâtel. In the course of 2009 various Atel and EOS subsidiaries will be gradually renamed.

2008 results of the Alpiq Group

Based on the results recorded by Atel and EOS, the Alpiq Group posted consolidated revenue for 2008 of CHF15.8 billion, EBITDA of CHF1,726 million, EBIT of CHF1,198 million and Group profit of CHF790 million. These results must be regarded as provisional since the assets contributed by EOS and EDF had not been fully integrated in the financial accounts by the end of January 2009.

Outlook for 2009

The merger between Atel and EOS to create Alpiq will generate additional business and growth opportunities in the medium term. The new company has significantly more production capacities and new procurement sources at its disposal, and is benefiting from additional customer relations and an extended pool of skills and experience. The company is in a position to capitalise on synergies which will have a positive impact on business operations and results over the medium term. In view of economic and regulatory uncertainties, any forecast of revenue and results at this point in time would be premature.