Lausanne, 13-1-2015 — /EuropaWire/ — Due to sustained low wholesale prices and the challenging regulatory environment, Alpiq expects impairments amounting to some CHF 1 billion after taxes, in particular on Swiss hydropower. On operational level, Alpiq confirms the guidance given last autumn for the full year 2014.
As a capital market-oriented company, Alpiq prepares its financial statements according to IFRS international accounting standards. Under this framework, Alpiq periodically assesses the value of its production portfolio, and if necessary recognises impairments accordingly. Based on current market prices and production costs, as well as the challenging regulatory environment, impairments and provisions amounting to some CHF 1 billion after taxes are expected in the course of preparing the annual financial statements. Mainly impacted are power plants, in particular Swiss hydropower plants and power plant projects, as well as long-term procurement and supply contracts.
Guidance of operating result confirmed
In spring, Alpiq announced that it expects 30 to 40 percent lower EBITDA for the financial year 2014 as compared to the previous year. Owing to consistent cost management and operative performance, the company, on publication of the 3rd quarter results for 2014, indicated a decreased EBITDA below 30 percent as compared to the previous year, excluding the above mentioned impairment effects. This guidance is confirmed.
Alpiq will publish its full year results 2014 on 9 March 2015.