Although warm weather led to the company’s gas net turnover falling by 21% in the first quarter of 2007, to E721 million, this was offset by increased electricity prices.
Indeed, Nuon said that its electricity net turnover, excluding incidental items, increased 22% to E784 million in Q1 2007. This was primarily driven by strong trading results and increases in electricity prices in the consumer market from January 1, 2007 due to higher raw material prices.
Nuon also benefited from increased results from trading activities and improved results in its operating activities, particularly in its production and trade segment. In addition, the company’s performance was driven by efficiently operating production facilities and successful trading activities.
In Q1 2007, Nuon’s domestic gas and electricity supply customer base decreased slightly as a result of increased competition. Nevertheless, in Belgium, Nuon acquired approximately 10,000 new retail customers in the Walloon region and, in Berlin, the company gained some 12,000 new customers.
Nuon’s competitive standing may also improve looking forward, as Ludo van Halderen, Nuon CEO, revealed that as a result of the company’s reduced operating expenses, Nuon will reduce energy prices as early as the middle of 2007. Despite continuing volatility in commodity purchasing markets, a reduction in gas prices of between 7% and 10% has been announced.
Mr van Halderen added: Now that the disposal of non-core activities has been virtually completed, Nuon is ready, as an integrated and highly focused energy company, to continue working on the future of a reliable, sustainable and efficient energy supply in its core countries.
On February 1, 2007, Nuon and fellow Dutch player Essent signed a merger agreement, which was subsequently submitted to the Netherlands competition authority. Nuon said that its shareholders would make a decision regarding the merger after the authority’s assessment has been made.
