Earnings

Sales revenue increased by 17.4 % to € 670.7 million. In spite of the much reduced water supply (hydro coefficient: 0.91) compared to the above-average supply in the corresponding quarter the previous year (hydro coefficient: 1.30), electricity sales, not including revenue from eco-electricity, were up 11.3 % at € 543.0 million. Contracted sales on the basis of the eco-electricity regulation amounted to € 50.0 million.

Grid revenue deteriorated by 8.5 % to € 63.2 million. This is attributable to the decline in transit revenue brought on by the drop in own generation and an extraordinary adjustment for a major customer that was included in sales the previous year.

The reversal of provisions on completion of renovation work, the value adjustments on the receivables side and greater inventory changes allowed other income to climb by 58.5% to € 42.5 million.

In 2002, the above-average water supply led to a reduction in electricity purchases, in 2003, however, electricity purchases and fuel costs were up € 144.9 and € 2.3 million respectively on account of the extreme drought.

Salary expenses were reduced due to lower accruals for vacation entitlements and the reversal of a provision for payment risks. Expenses for pensions, on the other hand, were adversely affected by the expenses for the early-retirement programs.

The decline in other operating expenses is primarily due to the provisions for flood damage included in last year’s value as well as lower expenses for legal and consulting services.

The increase in electricity purchases on account of the low water supply and higher staff provisions for restructuring programs were not fully compensated by the growth in sales.

The favorable development of the Japanese Yen paved the way for valuation-related exchange gains in the amount of € 5.9 million. The drop in short and long-term interest rates coupled with the reduction in long-term debts boosted the financial result by an additional € 7.8 million. The marked improvement in the result from participating interests in the amount of € 14.6 million can be attributed, above all, to negative effects connected to the first-time at equity consolidation of STEWEAG-STEG GmbH that were contained in the corresponding quarter of the previous year.

The increase in the tax burden is attributable to the one-off tax-relief that was claimed in the previous year in connection with the new severance pay legislation.

After taxes and under consideration of the drop in minority interests, the remaining group result was held at the same level as in the previous year.