Switzerland-based European utility group Aare-Tessin for Electricity recorded Q1 2007 revenue of almost CHF3.3 billion, a 10% increase over Q1 2006. The group also revealed that its operating and group profits rose substantially in the period, compared to the relatively weak performance recorded in Q1 2006.
Aare-Tessin for Electricity (Atel) reported that, in the first three months of 2007, the group saw a sharp rise in trading and sales in all market regions. Atel said that Europe-wide trading generated extremely good results, and that the energy services segment benefited from the sustained favorable economic trend in Switzerland and Germany.
Atel revealed that energy sales increased by 7% to 33.4TWh and that operating profit before interest and tax grew by 57% to CHF220 million. In addition, the group generated a profit of CHF185 million between in Q1 2007, representing an 83% increase over Q1 2006.
Although this represents extremely strong growth, Atel conceded that the poor Q1 2006 results were the result of extraordinary regulatory charges and restructuring costs. In addition, the group reported that the Q1 2007 results were negatively impacted by the drop in prices for carbon dioxide certificates.
Nevertheless, Atel is positive about its outlook for 2007, and said that, overall, the group expects to see sales and revenue grow further in the course of the year. In addition, based on the good start to 2007, Atel expects its year-end results to be slightly better than had been anticipated.