1 Accounting and valuation principles
The consolidated semi-annual financial statements presented here comprise the unaudited semi-annual financial statements for the six months to 30 June 2019. This interim report has been prepared in accordance with Swiss GAAP FER 31 Complementary Recommendation for Listed Companies in abridged form, and should therefore be read in conjunction with the consolidated financial statements for the year to 31 December 2018.
In individual cases roundings can mean that figures in this report do not add up to the exact total specified, and that the specified percentages do not exactly result from the stated figures.
The dividend payment for the 2018 financial year was approved by the annual general meeting on 15 May 2019.
The following exchange rates were used as a basis for converting the figures in the income statement and balance sheet into CHF:
2 Segment reporting
Net sales from goods and services also include gains and losses (realised and unrealised) on trading transactions. Depending on the party and the business in question, revenues are stated under other items. This overarching representation by segment does not constitute a full picture of trading activities.
3 Comments on the consolidated financial statements
Changes in consolidations
In March 2019 Engie New Business acquired an interest in tiko Energy Solutions AG by way of a unilateral capital increase. Repower’s interest in tiko Energy Solutions AG declined from 35.0 to 19.8 per cent. The entity is no longer recognised using the equity method under investments in associated organisations and joint ventures; instead it is now recognised as financial assets at cost.
In 2019 Repower acquired another 5 per cent of the shares in the existing group company ESE Salento S.r.l. The cash outflow of CHF 6 thousand is offset against negative minority interests in the equity of CHF 63 thousand. The difference of CHF –69 thousand was allocated to the majority shareholder’s capital.
Material events and business transactions
The overhaul of the Teverola power plant scheduled for the first quarter of 2018 took considerably longer than expected owing to technical problems. The planned downtime coupled with the unscheduled delay in getting the plant up and running again had a substantial negative impact on results for the first half year of 2018. In the first half of 2019 Repower received reimbursement of CHF 6,425 thousand from its business interruption insurance for downtime at the Teverola plant during 2018; this figure is disclosed under other operating income.
The share of results of associates and joint ventures is better than the prior-year period. The negative result for the period to 30 June 2018 essentially contained losses from tiko Energy Solutions AG, which the prior year was still recognised as an associated organisation.
An increase in materials and outside services versus the first half of 2018 relates to work for third parties and product development at Repower, and to the companies of Repower Renewable S.p.A., which have been consolidated since 5 December 2018.
In connection with the new investor joining tiko, losses netted with investments and loan receivables to the company to the amount of CHF 6,481 thousand were released. The early repayment of a loan liability continued to result in income of CHF 1,211 thousand, which is likewise stated under financial income for the first half of 2019.
The decline in inventories is essentially due to a reduction in the gas inventory. The main reasons for the increase in other receivables are higher security deposits and advance payments paid and VAT receivables.
As announced in the media release of 24 June 2019, Repower intends to merge its group company SWiBi AG with EcoWatt AG and Sacin AG, which likewise operate in energy services, with effect 30 November 2019. The company created by this merger, esolva ag, is to be held as follows: around 40 per cent by Repower AG, and 30 per cent each by St.Gallisch-Appenzellische Kraftwerke AG and EKT Holding AG, plus small shareholders.
4 Events occurring after the balance sheet date
The consolidated interim financial statements were approved by the board of directors on 14 August 2019.
Since 30 June 2019 there have been no other events which require disclosure.