First half year 2011
Highlights
- Reported net profit decreased 26% to EUR 198 million (H1 2010: EUR 269 million);
- Excluding incidental items the operational results improved, resulting in an increased net profit of EUR 184 million (H1 2010: EUR 171 million);
- Excluding incidental items the net turnover decreased by 11% to EUR 2,250 million (H1 2010: EUR 2,536 million);
- Nuon’s market share in the domestic consumer and business markets remained stable;
- Capital expenditures increased to EUR 445 million (H1 2010: EUR 355 million), due to investments in new efficient production capacity.
Jul 28, 2011 | Amsterdam First half year Nuon: Solid results, investments increased
The reported net profit of energy company N.V. Nuon Energy decreased to EUR 198 million in the first half of 2011, compared to EUR 269 million in the same period in 2010. Operational results improved; excluding incidental items the net profit, increased to EUR 184 million. Net turnover decreased, mainly due to lower gas volumes sold as a result of the warmer weather in 2011. Production and wholesale margins continued to be under pressure due to market circumstances. Operating expenses, excluding incidental items, remained stable thanks to a continuous focus on cost control which was also reflected in lower personnel expenses. The construction of three new efficient gas-fired power plants is proceeding according to plan.
Commenting on the results CEO Huib Morelisse said: “Nuon reports a solid operational result despite challenging market circumstances. We maintained high customer satisfaction levels and market share while in the meantime we continued to focus on cost control. The construction of our three new gas fired power plants in Diemen, Amsterdam and Eemshaven as well as the construction of a heat pipeline to Almere, are well on track.”
The market share of Nuon in the Netherlands remained stable in the first half of 2011 with 2.3 million electricity contracts and 1.9 million gas contracts. Our energy-related services provided to customers increased. The number of houses insulated for example, doubled to 7,000 compared to the first half of 2010.
The capital investments amounted to EUR 445 million, a rise of 25% from EUR 355 million compared to the same period in 2010. In addition to the regular investments in our existing production capacity and heat networks, investments were made in new gas-fired power plants in Amsterdam (435 MWe), Diemen (435 MWe and 260 MWth) and Eemshaven (1,311 MWe). These new efficient power plants enable the realization of Nuon’s ambition to use fossil fuels as efficient and as clean as possible. The construction is on schedule and all necessary permits have been obtained. New gas storage facilities in Epe became operational ahead of schedule, bringing the location’s total storage and injection capacity to approximately 280 million m3 of natural gas
Sustainable energy
The construction of a nine-kilometre heat pipeline from the new Nuon Diemen plant to the heat network in Almere started in May 2011 and will reach Almere later this summer. Nuon’s Solar Island in Almere produced 10 percent more heat than expected due to the warm weather in the spring of 2011. The Solar Island provides 2,700 households with heat and warm water. Meanwhile, realisation of the previously announced onshore wind projects is proceeding to plan. Nuon also continues to pursue different offshore wind options in the Netherlands.
Strategic developments
In the autumn of 2010, Nuon’s parent company Vattenfall announced a new strategic direction for the Vattenfall Group. One of the key elements of this new strategic direction is a strong focus on the Group's operations on core assets in three core markets. The main drivers for the new strategic direction are to increase profit and value creation, reduce debt and lower CO2-exposure. As part of this strategic direction, Nuon sold Nuon Exploration and Production B.V. to Tullow Oil plc for an enterprise value of EUR 300 million plus customary adjustments per June 30. The book result of the transaction amounts to EUR 51 million.
On July 26 2011 an agreement was signed with Eni in respect of the divestment of Nuon Belgium. Nuon is continuing efforts to select a partner for Helianthos (flexible solar cells technology).
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