Stadtwerke Gießen AG (SWG) closed the 2005 financial year with a balance sheet profit of around 1.2 million euros. The two members of the company's Management Board, Manfred Siekmann and Reinhard Paul, were satisfied with this result. "The year 2005 was a difficult year that placed high demands on companies in the energy sector - and therefore also on us. I would just like to mention the effects of the new Energy Industry Act and the sharp rise in purchase prices for electricity and gas as examples. But our company has performed well in this difficult and challenging market environment," says CEO Manfred Siekmann.
SWG Group also successful
The net profit for the SWG Group, which in addition to the parent company Stadtwerke Gießen AG includes the 51% subsidiary Heizkraftwerk Gießen GmbH, the 100% subsidiary MIT.BUS GmbH and the 100% subsidiary Elektrizitätswerk Hammermühle (EWH) Versorgungs GmbH, which was founded in 2005, amounts to around € 1.5 million:
- At 442 thousand euros, the annual result of the local transport subsidiary MIT.BUS GmbH is roughly on a par with the previous year.
- At the two subsidiaries Heizkraftwerk Gießen GmbH and EWH Versorgungs GmbH, the high energy purchase prices had a negative impact on earnings.
- As a result, Heizkraftwerk Gießen GmbH was again able to generate a positive annual result in 2005. However, at 280.3 thousand euros, this is significantly below the 2004 result.
- EWH Versorgungs GmbH posted an annual loss of 27.8 thousand euros in its founding year.
Appropriation of profits
Dr Volker Kölb, Chairman of the SWG Supervisory Board, on the appropriation of the profit: "We are pleased that, as in the previous year, EUR 1.0 million of the EUR 1,178,104.11 net profit of Stadtwerke Gießen AG will be distributed as a dividend to the City of Gießen, which is the sole shareholder of SWG. This means that the money will benefit the citizens of Giessen." 100 thousand euros will be allocated to retained earnings and the remaining 78,104.11 euros will be carried forward to new account.
Increased purchase prices have an impact on earnings
In 2005, not only did private households have to pay considerably more for their energy consumption, but energy procurement costs also rose significantly for SWG. This increase could only be partially passed on to customers through higher sales prices. As a result, the operating results in the energy-related branches of the business have fallen despite some increases in sales revenue.
The following developments occurred in the individual divisions of Stadtwerke Gießen AG in 2005:
Electricity
At 899 gigawatt hours (GWh), SWG sold 7.1 % more electricity to its customers than in 2004. At the same time, sales revenues also rose by 13.3 %. The operating result in the electricity supply segment totalled 4.8 million euros in 2005, 1.2 million euros below the previous year's result.
Gas
In 2005, SWG supplied 1,788 GWh of gas to its customers, which is 3.4 % less than in 2004. Sales revenues increased by 15.3 %. At 4.4 million euros, the operating result in the gas supply segment was 1.4 million euros lower than in the previous year. Following the great success of its public natural gas filling station on Marburger Strasse, SWG is now also building a filling station for buses on its premises on Lahnstrasse. The bus fleet of the local transport subsidiary MIT.BUS GmbH will then gradually be converted to natural gas buses. The first five natural gas buses are expected to be on the roads in and around Giessen in the near future.
District heating
In 2005, SWG sold 2.8 % less heat than in 2004, with heat sales totalling 403,401 megawatt hours (MWh). Sales revenues increased by 18.3 % to 22.5 million euros. The operating result for heat supply totalled 222 thousand euros, 40 thousand euros below the 2004 result.
Water
The trend towards falling water consumption appears to have been reversed. As a result, SWG supplied 4.8 million cubic metres of water, 1.3 % more than in 2004. However, this increase is mainly due to the fact that water sales were calculated on a different basis than in previous years, i.e. on the basis of an exact cut-off date. Sales also increased accordingly by 3.4 % to 9.6 million euros. The operating result in the water supply segment totalled 389 thousand euros, 298 thousand euros higher than in the previous year.
Local transport
In local transport, sales increased by 7.8 % to 7.1 million euros. As in previous years, the transport companies closed with a negative result. After -6.0 million euros in 2004, the result for 2005 was -4.9 million euros. Passenger comfort is also a top priority at MIT.BUS GmbH. In 2005, five new buses were put into service at our local transport subsidiary. These buses are equipped with low-floor technology, i.e. they have a low vehicle floor. This makes it easier for wheelchair users or parents with pushchairs to get on and off the bus. In addition, the driver can lower the bus at bus stops if necessary. An air conditioning system ensures pleasant temperatures in the new buses in both summer and winter. The buses are also state-of-the-art in terms of environmental protection. Thanks to a combination of catalytic converter and soot filter, they emit very few pollutants.
Baths
Even though the summer of 2005 - one of the four coldest since weather records began in 1896 - spoilt the summer a little: Nevertheless, 19,633 more bathers came to SWG's three outdoor pools in the 2005 season than in 2004. In total, the municipal utilities welcomed 450,305 visitors to their five pools in 2005, 3,572 more visitors than in 2004. Revenues stagnated at a level of EUR 0.9 million. The bottom line for the pools was also a negative operating result of -2.7 million euros. The year 2005 was all about children at the swimming pools. Two new courses for children, namely the "Delfin-Kids" (a water familiarisation course for three to five-year-olds) and the "Seepferdchen Group" (for children who already have the Seepferdchen early swimmer badge and want to learn to swim even better) have been on the course programme since September 2005. But there was also something new for adults with the long sauna night, which the SWG offered seven times in 2005.
Employees
As at 31 December 2005, Stadtwerke Gießen AG had 721 employees. The number of employees thus rose by 20. At the end of 2005, the SWG Group employed a total of 758 people, 27 more than in 2004. 37 trainees learnt a profession at SWG in 2005. In addition, 35 young people were trained at SWG in certain areas on the basis of co-operation agreements with other training companies.
Outlook for 2006
In 2006, the electricity and gas grid utilisation fees are due to be approved by the responsible regulatory authorities. As a result of this decision, SWG expects significant cuts in grid utilisation fees. This will also affect the sales revenues of Stadtwerke Gießen AG via the subsidiary Mittelhessen Netz GmbH. CEO Manfred Siekmann: "Nevertheless, we are optimistic about the future. We are in the process of implementing the necessary restructuring measures for our company. For example, we have founded an independent grid company, Mittelhessen Netz GmbH, which has been operating the electricity and natural gas grids since 1 January 2006. We have also used unbundling as an opportunity and restructured some parts of our company." SWG also wants to continue on its targeted course of "growing, not shrinking". This refers to the company's endeavours to grow by gaining market share or through shareholdings in order to survive on the market as an independent company. In 2005, SWG was successful in this endeavour, e.g. in the electricity sector with the purchase of the Hammermühle electricity supply company and in the water sector with the conclusion of a further water supply contract with the town of Grünberg for the Harbach district.