Higher revenue and operating profit

BKW is focused on driving its strategy forward. The company is investing in the expansion of renewable energies and rapidly building up its Services portfolio. The Services business alone saw a significant rise in revenues compared with the first half of 2016, and at CHF 332 million it already contributes a quarter to overall revenues. The expansion of existing competencies in this area is on track and will continue. This contributes to BKW's overall stability and lessens the company's susceptibility to cyclical fluctuations and developments in the electricity market.

Higher operating results at every level

In the first half of 2017, BKW increased its operating revenue by 9% to CHF 1.297 billion. At CHF 182 million, the operating profit (EBIT) was 6% higher than for the same period in the previous year. Although the net profit of CHF 116 million fell short of the previous year's figure of CHF 124 million, that result was attributable solely to the gain on the sale of the company's stake in Romande Energie in 2016. Excluding this one-off effect from the previous year's period, net profit increased slightly.

Once again, the company succeeded in reducing its cost base in the organic business significantly, with a CHF 41 million improvement over the previous year.

Further expansion in renewable energies

As expected, there was a slight decline in the Energy business due to the continuing negative price trend, despite stronger electricity trading and the continuing expansion into renewable energies. This resulted in operating revenue of CHF 666 million, representing a drop of 4%. Nonetheless, the operating profit increased by 1% to CHF 81 million - a strong result in the context of persistently negative electricity price developments. With optimal management of energy positions, very good trading results and consistent cost management, BKW managed to compensate for the negative price trends.

BKW continued to expand its wind portfolio in the first half of 2017. The projects acquired in France in 2016 are currently under construction. In Norway, the Fosen project is proceeding to plan. And in July, BKW took over another wind park project in Norway, scheduled to come on to the grid in late 2018. In Switzerland, the expansion of small-scale hydropower is progressing. BKW is on schedule to put two more plants into operation in 2017.

AEK drives growth in the Networks business

The operating revenue for the Networks business grew by 16% to CHF 343 million. This increase is due primarily to last year's acquisition of a majority stake in AEK. Traditional business areas succeeded in reducing costs significantly (-6%).

Consistent structures in the Services business

BKW is moving forward rapidly with its expansion of the Services business. A revenue increase of 37% to CHF 332 million was accompanied by an overproportionate increase in operating profit. Despite costs associated with acquisitions, this resulted in an EBIT of CHF 15 million - an increase of 40%. This growth, is again due largely to acquisitions. In the first half of the year, BKW purchased a total of 10 companies in the areas of building technologies, grid infrastructure and engineering.

In building technologies, BKW has expanded its geographic presence with new operations in western Switzerland. The grid infrastructure business underwent further considerable expansion in spring with the acquisition of Hinni AG. The strongest growth in recent months was seen in BKW Engineering. Through Assmann and the Grunder Group, this division has further strengthened its competencies in the areas of infrastructure planning and surveying.

At the same time management and support functions are being put in place, particularly in the areas of IT, HR and procurement. Structures are becoming more tangible from an organisational perspective. In building technologies, a regional organisational structure for Switzerland has been introduced, divided into the three competency centres West, Central and East. For BKW Engineering too, the introduction of suitable structures through collaboration platforms is in planning that will greatly facilitate cooperation and make the competencies of the individual businesses accessible to the entire network. As a result, competencies will be deployed more widely and mutual reinforcement of strengths will enable the planning and support of larger, more complex infrastructure projects.

BKW expects solid results for 2017

BKW confirms its previously communicated outlook for the current year. In 2017, the company expects operating profit to be in line with that achieved in 2016 (excluding exceptional items).

Further information on BKW's half-year results can be found online on the BKW website. In addition to the Half-Year Report as a PDF, a video interview with BKW CEO Suzanne Thoma on the half-year results is also available as a download.

* Excluding revenue of the sales business in Italy. Options for the sale of Electra Italia are currently reviewed.