German utility EnBW AG (EBK.XE) said Friday its earnings fell in the first half due to difficult conditions on the electricity and gas markets, as well as extraordinary charges.

MAIN FACTS:

-EnBW confirmed its outlook, saying it expects to achieve EBITDA adjusted for extraordinary items 5%-10% below the previous year.

-"Due to new statutory requirements, especially in the nuclear energy area, we were faced with absorbing a high level of charges that negatively impacted group net profit to a significant extent," Chief Financial Officer Thomas Kusterer said.

-Group net profit in the period was EUR190.5 million, down from EUR545 million.

-Adjusted net profit of EUR475.6 million was below the previous year's EUR575.6 million.

-EnBW generated EUR10.6 billion of revenue during the first six months, up 9.3%.

-EBITDA (earnings before interest, tax, depreciation and amortisation) adjusted for extraordinary items fell 2.3% to around EUR1.4 billion.

-Lower prices and spreads in electricity production as well as the burden arising from the full auctioning of CO2 emission allowances since the start of 2013 represent the main reasons for this decrease.

-Especially given the electricity price trend, EnBW assumes it will report significantly lower earnings in its generation and trading as well as renewable energies segments on a full-year basis.

-Marked earnings growth is expected in the grids segment.

-EnBW expects higher full-year earnings in its sales segment, despite the drop in earnings in the first half. For this reason, the company confirms its forecast of generating adjusted EBITDA on a full-year basis for 2013 that is down by 5% to 10% year-on-year.

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