VKW with Declining Profits in the First Half of 2011
The regional energy company reported a drop in power generation due to the dry weather in the period from January to June.
VKW with Declining Profits in the First Half of 2011 / Picture: © Vindobona.org
Net profit of stock listed Vorarlberger Kraftwerke AG (VKW) amounted to € 17.07m in the first half of 2011 which corresponds to a decline by € 2.16m year-on-year. The winter with little snowfall and low water levels in the first two quarters had affected VKW’s power generation from own plants, explained Ludwig Summer, Chairman of the Board. Electricity production declined by 22% compared to the first half of 2010.
Electricity volumes from procurement rights also dropped by some 20%, reducing the result of the second quarter of 2011. In the period from April to June, net income after tax declined from € 17.05m to € 11.56m. The rainy weather in July improved the situation after the dry previous months although power generation was still below the usual level, Summer stated.
Energy that could not be generated in the company’s own plants had to be purchased on the electricity market. Due to the developments after the disaster in Japan as well as Germany’s and Switzerland’s planned withdrawal from their nuclear energy programs, the wholesale price went up 10%.
VKW achieved revenues of € 225.34m in the first half of the year (1H 2010: € 225.73m). The electricity segment accounted for € 183.28m (€ 181.83m), while revenues from the gas business amounted to € 42.06m (€ 43.90).