Poschiavo, Switzerland, 5-8-2015 — /EuropaWire/ — The predictions accompanying publication of Repower’s last annual results − that with energy prices low and the Swiss franc so strong, the market environment would continue to be challenging in 2015 − have proven to be correct. However, the scale of the turmoil and its impact on operational business have been more serious than expected. For this reason, Repower is downgrading its earnings expectations. As things stand at present, operating earnings before interest and tax (EBIT) for 2015, before exceptional items, will be a good 50 per cent lower than last year. In 2014, EBIT before extraordinary items came to CHF 39 million. Repower also expects another net loss, substantially higher than last year’s, for 2015.
This situation is also reflected in this year’s semiannual results. With a currency-driven decline in sales, negative currency effects have taken around CHF 6 million off operating earnings and around CHF 60 million off financial earnings. Reflecting persistently hostile market conditions, Repower’s semiannual results will include impairment charges on Swiss hydropower plants and the combined cycle gas turbine plant in Teverola, and provisions for long-term agreements, of a good CHF 40 million in total.
As a result, Repower anticipates negative EBIT for the first half of 2015 and a net loss of around CHF 110 million.
Repower is stepping up efforts to make its business less dependent on the actual price of electricity by further expanding its sales and service business in all key markets and strengthening its innovation portfolio. The company is also systematically pursuing its efficiency programme and continuing to optimise structures. It is also working to adapt part of its hydropower assets to benefit from subsidies.
Detailed results for the first half of 2015 will be published on 27 August 2015, accompanied by a comprehensive commentary.
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