Stadtwerke Gießen AG (SWG) closed the 2003 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. "We are pleased that we have achieved our target for 2003. This result is all the more impressive as it was achieved against a background of extraordinary charges," said Manfred Siekmann, Chairman of the Management Board. The extraordinary charges were mainly due to the fact that SWG had to set aside a provision of two million euros for the planned remediation of contaminated sites on the site of the former gasworks at Berliner Platz. In addition, there were further provisions, in particular an increase in provisions for partial retirement, and the consolidated balance sheet profit of around 620 thousand euros reported for the first time for the 2003 financial year is also pleasing. Background: Stadtwerke Gießen became a "mini group" in 2003 as a result of the acquisition of the local transport subsidiary Verkehrsbetriebe Pfeiffer GmbH, now MIT.BUS GmbH, and the majority shareholding in Heizkraftwerk Gießen GmbH. Accordingly, consolidated financial statements had to be prepared for the first time for 2003. Based on the SWG profit of around Euro 1.2 million, the Board of Management and the Supervisory Board proposed to the Annual General Meeting that a dividend of Euro 600 thousand be distributed to the City of Giessen as the sole shareholder of Stadtwerke Giessen AG, that Euro 500 thousand be allocated to revenue reserves and that the remainder be carried forward to new account. The City of Giessen has approved this proposal. The distribution to the City of Giessen was "only" 600 thousand euros, as the SWG Group's net profit of around 620 thousand euros is the actual basis for the distribution, and the Chairman of the Supervisory Board, Dr Volker Kölb, was very satisfied with these figures: "Stadtwerke is a key economic factor for the City of Giessen. After all, we don't just receive money from the profit distribution. In 2003, SWG incurred losses totalling around 7.8 million euros for local transport, rail operations and swimming pools." Added to this are the concession fee totalling 3.6 million and trade tax to the city of Giessen (761 thousand euros). SWG paid around 2.4 million euros in concession fees and 326 thousand euros in trade tax to the other towns and municipalities in 2003. The following developments occurred in the individual business segments in the 2003 financial year:
Electricity
In total, SWG sold around 777 GWh of electricity to its customers, around 1 % more than in 2002. Due to this increased levy and a price adjustment on 1 January 2003, sales revenue from electricity rose by 7.4 %. With the price adjustment, SWG passed on to its customers the increase in electricity tax to 2.05 Ct/kWh, higher electricity purchase prices and the increased charges resulting from the Renewable Energy Sources Act and the Combined Heat and Power Act. The operating result in the electricity supply segment totalled 5.6 million euros in 2003, around 390 thousand euros higher than in 2002.
Gas
At around 1,844 GWh, 3.6 % more gas was sold to customers than in 2002, primarily due to significantly cooler weather in the first quarter. Gas sales revenues rose accordingly by 9.8 %, as the higher gas sales were accompanied by a price increase on 1 January 2003, in which SWG passed on the increase in natural gas tax to its customers. Despite these positive figures, the operating result in the gas supply segment was around one million euros lower than in 2002, due to the above-mentioned provision for the remediation of contaminated sites on the site of the former gasworks.
District heating
SWG founded Heizkraftwerk Gießen GmbH together with Giessen University Hospital (49%) via a 51% majority shareholding. The company's tasks are to generate heat, cooling and electricity. The distribution of the products to end customers remains with SWG. In 2003, SWG sold around 416 thousand MWh of heat to its customers, 3.2 % more than in the previous year. Sales revenue also increased, by 8.6 %. The operating result in the heat supply division of Stadtwerke Gießen AG totalled around 1.1 million euros, a significant increase on the previous year (275 thousand euros).
Water
Despite the hot summer, less water was consumed in 2003 than in 2002, with SWG's water consumption falling by 1.9 % to 4.9 million m³. SWG reduced its water prices on 1 January 2003 and thus passed on the abolition of the second stage of the groundwater levy to its customers. As a result of this price reduction and the lower sales volume, sales revenue fell by 7.3 %. The operating result in the water supply segment fell to 573 thousand euros (2002: 1,370 thousand euros). The high quality of Giessen's drinking water was confirmed in 233 laboratory tests.
Pools
Unlike this year, the summer of 2003 was a real open-air swimming pool summer. SWG was pleased to see a sharp increase (+93.1%) in the number of visitors to its outdoor pools. In 2003, a total of 214,389 visitors came to the three outdoor pools in Giessen, 103,371 more than in 2002. In contrast, the trend at the indoor pools was the opposite. At 309,927 people, 8.7 % fewer visitors came to the Ringallee and Westbad indoor pools. In 2003, a total of 524,316 visitors came to Giessen's swimming pools, 16.4 % more than in 2002.
Local transport
There were some changes in the local transport sector in 2003 due to the founding of the local transport subsidiary Verkehrsbetriebe Pfeiffer GmbH (now MIT.BUS GmbH). For SWG, the aim of this measure is to remain competitive with private bus companies in the forthcoming competition for public transport routes. Stadtwerke Gießen AG will remain in charge of the order. The transport service will be provided by Verkehrsbetriebe Pfeiffer GmbH (now MIT.BUS GmbH). The buses were also transferred to the subsidiary. Verkehrsbetriebe Pfeiffer GmbH covered 2.6 million kilometres with 60 of its own and 15 rented buses.
In 2003, a great deal was again done to improve passenger comfort. For example, the Stadtwerke installed 15 new bus shelters with glass all round and integrated ceiling lights. The bus fleet was also further modernised in 2003. Six new buses - three standard service buses and three articulated buses - were purchased by SWG and handed over to Verkehrsbetriebe Pfeiffer GmbH (now MIT.BUS GmbH). The buses are equipped with modern low-floor technology, allowing passengers to board almost at ground level. InvestmentsIn 2003, Stadtwerke Gießen AG made investments totalling around 20.5 million euros. At 6.4 million euros, the lion's share of the investments went into the expansion and modernisation of the distribution facilities in the supply divisions (electricity, gas, water and heating). Further funds totalling 2.1 million euros were invested in road transport operations, in particular in the replacement of buses, the further expansion of the bus acceleration system and the refitting of bus stops. In the swimming pools, the largest investment was in the construction of a fitness pool in the Ringallee indoor pool, which has been available to bathers since the spring of this year. Investments were also required in 2003, e.g. for IT software, operating and office equipment and for building extensions and conversions. 10.7 million euros went to the subsidiaries in the form of cash and non-cash contributions. In addition to the aforementioned investments totalling 20.5 million euros, SWG also carried out maintenance measures amounting to around 11 million euros. Of the total of around 31.5 million euros, at least 70 % flowed into the local area. "This makes SWG one of the largest investors in the Central Hesse region," emphasised Dr Volker Kölb.
Employees
As at 31 December 2003, Stadtwerke Gießen AG had 699 employees. This figure includes dormant employment contracts due to parental leave, partial retirement, fixed-term pensions and military or alternative military service. The number of employees thus increased by 23 people or 3.4 %. The main reason for the increase is the recruitment of the 21 employees of the combined heat and power plant formerly employed by the University Hospital Giessen. As at 31 December 2003, 59 people were employed part-time at Stadtwerke Gießen AG.723 people were employed in the SWG Group at the end of 2003 (including dormant employment contracts). This figure includes 24 employees of the two subsidiaries Verkehrsbetriebe Pfeiffer GmH and Heizkraftwerk Gießen GmbH. 68 people were employed part-time. In 2003, nine young people began their training at Stadtwerke Gießen AG. This means that a total of 29 young people were on the way to their future careers at the company.
Internal change
In order to continue to compete successfully in the changing energy and transport market, SWG is reorganising its company. As the most important organisational step in this direction, SWG brought the company structurally onto a group course in 2003. Manfred Siekmann: "By founding our local transport subsidiary Verkehrsbetriebe Pfeiffer GmbH, which is now called MIT.BUS GmbH, and acquiring a majority stake in Heizkraftwerk Gießen GmbH, we have become a mini-corporation. This is the first important step in the direction of a holding structure with business segment-orientated, independent companies."
... and outside
SWG also changed visually in 2003. After 18 months of remodelling, the new reception area and the new multi-purpose building were completed. Since December, SWG customers now have a second point of contact alongside the infoCentre on Gießen's market square.
Outlook for 2004
- So far, business has developed largely as planned in the business plan. In detail, this means that Stadtwerke Gießen AG is currently 0.5 % above plan in the electricity sector, 3.5 % above plan in the gas sector, 3.9 % below plan in the district heating sector and 1.5 % below plan in the water sector. The figures for local transport are not yet available from RMV. Finally, SWG is 3.9 % above plan for indoor swimming pools and 6.6 % below plan for outdoor swimming pools - not surprising given the rather modest summer of 2004 to date. To summarise, it can be said that the annual result of around 1.8 million euros (after tax) planned for 2004 does not appear to be at risk on the basis of developments to date.
- The year 2004 will bring a number of challenges for SWG. These include the obligation to unbundle, i.e. the separation of grid operation and energy generation/sales. A concept for SWG is currently being developed within the company.
- In addition, planning preparations are being made for a thermal residue energy utilisation plant (TREA).
- The objectives for 2004 are to assist in the establishment of the "Abwasserwirtschaft Mittelhessen" (Central Hesse Wastewater Management) company and to achieve qualified, moderate growth, particularly in the supply sector.
- One goal for 2004 has already been achieved: the municipal utilities successfully completed the natural gas filling station project. Since March, it has been possible to fill up with natural gas at the Aral petrol station in Marburger Strasse in Giessen.