THE NETHERLANDS: Nuon Posts Fourth-Quarter Loss After Writing Down Asset Values

by Fred Pals and Joana Quintanilha
Nuon NV, the second-largest utility in the Netherlands, reported a fourth-quarter loss after it wrote down the value of tax deferments and other assets. Profit before one-time items fell 63 percent because of higher energy costs.

The net loss for the three-month period was 10 million euros ($13 million), compared with year-earlier income of 665 million euros, the company said in an e-mailed statement today. Sales fell to 1.389 billion euros from 1.399 billion euros.

Excluding one-time items, profit fell to 53 million euros from 144 million euros after the company was unable to fully pass higher energy costs on to customers. Sales excluding incidental items fell 4 percent to 1.36 billion euros from 1.41 billion euros after mild weather reduced energy demand.

Nuon and Essent NV, the largest Dutch utility, have agreed to form a new company they valued at 24 billion euros, aiming to gain size and help fend off takeover attempts by bigger European competitors. The proposal is subject to shareholder and antitrust approval.

Nuon said today the two companies plan to make a formal merger proposal to their shareholders in the middle of this year. Both are owned by provincial and municipal governments in the Netherlands.

No comments: