Dutch energy player Nuon has booked net profit excluding incidental items of E175 million in the second quarter of 2007, up 26% over the same period of 2006, despite a 7% drop in turnover excluding incidental items to E1.1 billion, due to warm weather.
However, the company’s reported net profit decreased by 52% to E168 million, notably due to consumer prices for electricity and gas being reduced by 3.5% and 8.6%, respectively from July 1, 2007, and one-off income in the second quarter of 2006.
Nuon said that the positive development of results was driven by its trading activities, higher margins on the production of electricity and increased power production due to the improved availability of power stations.
In addition, performance improved in Belgium and Germany, where the number of customers grew significantly, and number of Dutch consumers purchasing gas and electricity from Nuon decreased by just less than 1% in the second quarter of 2007, despite growing competition.
The operating cash flow for the second quarter of 2007 amounted to E481 million, compared to E271 million in the second quarter of 2006, due to improvements in the working capital and higher settled trading results. The net debt totaled E66 million at the end of Q2 2007, compared to E903 million at the end of Q2 2006.
In Q2, Nuon made further preparations for its merger with fellow Dutch player Essent, and will continue these into Q3. The company said that it is also reviewing the consequences of the Dutch Ministry of Economic Affairs’s royal decree regarding the unbundling of Dutch utilities, which requires that Nuon should be unbundled by no later than January 1, 2011.
Nuon’s CEO, Ludo van Halderen, commented: It’s not immediately visible in the reported figures, but the underlying results of Nuon are exceptionally good. The profit from our business activities is higher than ever, particularly thanks to good deals in the European purchasing market.