2005 - 2006 - Pinsent Masons Water Yearbook 2012

GERMANY PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Gelsenwasser AG
Gelsenwasser is a water supply company operating in North Rhine Westphalia, and until the
privatisation of Berlin Water, was the largest and oldest water company in Germany. In 1887, it was
awarded the contract for the operation of Gelsenkirchen’s water provision services. In 1997, this
contract was renewed to 2027. Gelsenwasser serves 400 industrial customers and 1.4 million people
directly, 1.5 million people via other water suppliers and 2.6 million through its subsidiary companies.
The company is developing its presence in the eastern Länder and central and eastern Europe.
E.ON's 80.5% stake in Gelsenwasser was sold to the municipalities of Bochum and Dortmund for
€835 million in 2003. The municipalities have been seeking to sell at least 25% to another company,
and have held talks with various players during 2004.
Gelsenwasser AG, profit and loss account
Y/E 31/12 (€ million) 2000 2001 2002 2003 2004
Water 195.4 194.6 191.1 196.2 205.2
Gas 148.6 182.3 171.0 180.8 179.4
Other 19.1 16.7 19.7 19.7 21.0
Revenues 363.1 393.6 381.8 396.6 405.6
Operating profits 45.5 49.0 36.4 73.1 70.2
Net profits 40.5 37.9 39.7 47.2 -1.5
Earnings per share (€) 11.79 11.03 11.55 13.73 -0.41
The company has some €337 million earmarked for capital spending until 2008, including €117 million
for water infrastructure upgrading and maintenance and €153 million for business expansion. .
Gelsenwasser, populations served
Country Water Sewerage Total
Germany 4,650,000 1,080,000 5,730,000
Hungary 190,000 190,000 190,000
Czech Republic 96,800 96,800 96,800
Poland 75,000 75,000 75,000
Total – home markets 4,650,000 1,080,000 5,730,000
Total – international 351,800 351,800 351,800
Grand Total 5,001,800 1,431,800 6,081,800
Water services are via direct water supply on behalf of municipalities, the sale of water to industrial
users (mainly in coal mining and steel manufacturing) and the resale of water to neighbouring utilities.
Household sales are broadly stable or showing a slight decline as water conservation measures gain
in popularity. Prices for domestic water have remained constant at €1.37 per m 3 since 1997.
Y/E 31/12 (million m 3 pa) 2000 2001 2002 2003 2004
Gelsenwasser AG 206.8 197.2 189.4 195.5 195.8
VGW 6.8 6.7 6.8 7.1 7.2
NGW 30.6 32.4 33.4 37.6 37.7
Gelsenwasser Group 244.2 236.3 229.6 240.2 240.7
Sales to industrial customers N/A 91.4 88.6 97.9 99.6
Sales to domestic customers N/A 65.3 64.5 65.5 64.5
Sales to other utilities N/A 79.6 76.5 76.8 76.6
Total sales N/A 472.6 459.2 480.4 481.4
Wastewater treatment:
Hanse Wasser (million m 3 ) 68.1 78.2 77.2 80.7 N/A
Hanse Wasser (revenues) N/A N/A 153.3 156.8 N/A
Overall (million m 3 ) N/A N/A N/A 94.0 125.2
Overall (revenues) N/A N/A N/A 170.9 219.7
3,700 new domestic customers were gained in 2003, along with a metalworking company moving into
its operational area (4.5 million m 3 per annum). The population of the company’s core operating area
is forecast to fall by 350,000 by 2015, hence the geographic diversification strategy.
300 Pinsent Masons Water Yearbook 2005 – 2006