EVN AG
EVN AG: Business development in the first half of 2016/17
DGAP-News: EVN AG / Key word(s): Interim Report/Half Year Results Highlights – Positive business development: – Temperature-related rise in network distribution volumes – Increase of 22.5% in electricity production – Further expansion of windpower generation capacity from the current level of 269 MW to over 300 MW with the Oberwaltersdorf (10 MW) and Sommerein (33 MW) windparks; commissioning planned for the 2017/18 financial year – Continued high level of investment; focal points: networks, renewable generation and drinking water – Arbitration decision on the Walsum 10 power plant project issued in November 2016 in favour of the project company – Settlement with the state-owned Bulgarian electricity company NEK in February 2017 – Rating upgrades in April 2017: – Moody’s: from A3 to A2 (stable outlook) – Standard & Poor’s: from BBB+ to A- (stable outlook)
– Revenue: +9.4% to EUR 1,309.8m – EBITDA: +13.9% to EUR 481.1m – EBIT: +10.0% to EUR 319.6m – Group net result: +23.1% to EUR 233.8m – Net debt: -21.3% to EUR 904.1m
The first quarter of 2016/17 brought considerably colder temperatures in EVN’s relevant markets. The heating degree total in Austria even exceeded the long-term average by a significant margin. The forward and spot market prices for base load and peak load electricity followed contrary trends during the reporting period: the forward prices for base load and peak load electricity declined, but spot market prices increased due to a temporary standstill of production capacities in France and the cold weather. The prices for primary energy carriers were consistently higher than the first half of the previous year. In contrast, the downward trend in the price of CO2 emission certificates continued during the reporting period.
Revenue recorded by the EVN Group rose by EUR 113.0m, or 9.4%, to EUR 1,309.8m in the first half of 2016/17. This development was supported, above all, by the increased use of the thermal power plants to stabilise the networks in Austria and southern Germany, temperature-related higher electricity and natural gas network distribution volumes in Lower Austria and a temperature-related rise in revenue in South Eastern Europe. Further positive impulses were provided by renewable generation as well as the international project business in the Environmental Services Segment.
EVN’s positive operating results create the foundation for a solid balance sheet structure. The equity ratio rose to 45.6% as of 31 March 2017 (30 September 2016: 42.3%). Net debt declined by EUR 217.3m below the level on 30 September 2016 to EUR 904.1m, and gearing fell to 30.3% (30 September 2016: 40.5%).
EVN’s electricity generation rose by 22.5% to 4,119 GWh in the first half of 2016/17 and reflected the increased use of the Group’s thermal power plants to support network stability in Austria and Germany during the winter 2016/17. Energy generation from renewable sources was 65 GWh, or 6.7%, higher year-on-year at 1,031 GWh due to an increase in water and wind flows and the commissioning of the Paasdorf-Lanzendorf windpark in July 2016. At the same time, the further expansion of windpower generation capacity remains a focal point of activities. The commissioning of the Oberwaltersdorf (10 MW) and Sommerein (33 MW) windpark projects is planned for the 2017/18 financial year and will raise EVN’s windpower generation capacity from the current level of 269 MW to over 300 MW.
In the water business EVN continues to focus on drinking water supplies in Lower Austria and invests further in the expansion of cross-regional pipeline networks, the increase in pumping station capacity and the upgrading of local water networks. In addition to safeguarding reliable supplies, especially in view of the increase in water consumption, EVN also places great importance on improving the quality of drinking water. Preparations have already started for the construction of a natural filter plant on the Wienerherberg well field, which will reduce the hardness of the water by natural means.
The Group net result is expected to increase over the previous year on the order of the non-recurring effect from the settlement in Bulgaria. In this connection, the reversal of valuation allowances to receivables recorded in previous years and default interest totalling approximately EUR 38m after tax were recognised. This outlook is based on the assumption of average conditions in the energy business environment. Other factors that could influence the Group net result include the regulatory environment, developments in the proceedings in Bulgaria, the remaining proceedings related to the Walsum 10 power plant project and the progress of activities in Moscow.
24.05.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | EVN AG |
EVN Platz | |
2344 Maria Enzersdorf | |
Austria | |
Phone: | +43-2236-200-12294 |
E-mail: | info@evn.at |
Internet: | www.evn.at |
ISIN: | AT0000741053 |
WKN: | 074105 |
Indices: | ATX |
Listed: | Foreign Exchange(s) Wien (Amtlicher Handel / Official Market) |
End of News | DGAP News Service |