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Elsam returns positive results amid speculation

21 March 2005 – The Danish utility Elsam has announced positive results for 2004, a year in which it was the subject of much merger and acquisition action and speculation.

Profits after tax were recorded at DKK2.04bn ($361m), the result of turnover rising by DKK1.86bn to DKK9.346bn and net capital hitting DKK15.85bn, an increase of DKK2.40bn. The results were regarded Elsam’s board and management as ‘satisfactory’.

Chairman of Elsam, Jens Bahne Jørgensen, said: “Elsam’s finances are going through a positive development as we continuously carry through initiatives improving our earning ability.”

The purchase of fellow Danish firm Nesa had a negative impact upon the Elsam’s performance, as did the speculation surrounding its future after DONG and Vattenfall both declared their intentions to launch a takeover bid.

Elsam’s positive results also came in spite of it being place on Credit Watch by Standard and Poor’s (S&P). S&P placed both DONG and Elsam on Credit Watch, with ‘negative implications’ due to fears that a merger could result in the risk profile of the combined group being too weak for its current level.

At Elsam’s annual general meeting on 15 April, the company is expected to recommend that a dividend of DKK22.50 per share be paid.