BAKU, Azerbaijan, Dec.11
By Leman Zeynalova – Trend:
At CHF 4808 million, Swiss Axpo’s total income in the 2019/20 financial year remained stable compared with the previous year, Trend reports with reference to the company.
“The decline in electricity demand in the wake of the COVID-19 pandemic was more than offset by higher hedged electricity prices and the exceptionally good result in energy trading. This resulted in earnings before interest and tax (EBIT) of CHF 791 million. Compared with the previous year’s result after adjustment for special items, EBIT rose by 67 percent,” Axpo said in its updated report.
The company said that though the result for the first half of the year up to the end of March 2020 was weighed down by fluctuations in the value of the STENFO funds, this effect was almost offset by the close of the financial year at the end of September 2020 by the recovery in the financial markets.
“Overall, this produced a result for the period of CHF 570 million.
The result for the period of CHF 865 million reported in the previous year included reversals of impairment losses of over CHF 300 million. The strong operating result was underscored by the significantly higher free cash flow of CHF 319 million (previous year: CHF - 273 million). The very good trading result and a lower level of funds tied up in net current assets had the greatest impact here.
Net investments fell after the acquisition of Urbasolar in the previous year and in some cases as a consequence of project postponements due to the pandemic, totalling CHF 275 million (previous year: CHF 419 million). The good business result also led to a further increase in the equity ratio to 31.1 per cent. The net financial position improved to CHF -1181 million owing to the inflow of funds. Axpo is thus soundly financed and also has sufficient liquidity to maintain operations in extraordinary situations and for further strategic development,” reads the report.
The report shows that after the financial markets recovered in the second half of the year, earnings before interest and tax (EBIT) of CHF 791 million were only slightly below the result for the previous year (CHF 850 million), when the company benefited from reversals of impairment losses of over CHF 300 million: “Adjusted for the reversals of impairment losses and for the fluctuations in the value of the Decommissioning Fund for Nuclear Facilities and Waste Disposal Fund for Nuclear Power Plants (STENFO), earnings before interest and tax increased by CHF 332 million year on year to CHF 826 million. In view of this strong performance, the Board of Directors will propose to shareholders that a dividend of CHF 80 million be paid out again, a year earlier than originally planned.”
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