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Higher Profits and Revenues at EVN

Published: February 28, 2012; 10:59 · (Vindobona)

The Austrian energy provider recorded a slight increase in profits (+1.8%) and revenues (+3.4%). EVN expects stable results in 2012.

Higher Profits and Revenues at EVN / Picture: ©

EVN generated total revenue of € 829.7m, a rise of 3.4% from the previous year. In the energy business the cold weather and the slight increase of end customer prices in South East Europe positively influenced the revenue development. In the environmental services business there was a revenue decline.

The positive revenue development was reflected in Group EBITDA despite higher costs for electricity purchases and primary energy expenses due to a 10.8% reduction in the cost of materials and services. EBITDA improved by 5.8% to € 167.6m. The results from operating activities featured an impairment loss of € 8.0m for the biomass pilot plant in Dürnrohr and thus amounted to € 104.7m, about the same level as in the previous year.

The financial results improved by 6.6% to € 17.3m. In this case, the higher income from investments in equity accounted investees, especially from EconGas and BEWAG, were in contrast to the higher interest expense and lower interest income. The rise of the interest expense resulted, amongst other factors, from EVN’s issuing of a € 300.0m corporate bond in October 2011, whereas the existing Eurobond was first redeemed in December 2011. The profit for the period was up 6.0%, to € 101.9m.

However, this rise was not reflected in the Group net profit, due to the fact that the profit attributable to non-controlling interests rose as a consequence of the higher earnings contribution from South East Europe. Thus the Group net profit increased by 1.8% to € 89.5m.

In the reporting period the gross cash flow totalled € 149.5m, a rise of 6.8% from the prior-year level. The net cash flow from operating activities was down by 69.2% to € 25.9m, which can be attributed to the higher rise in working capital compared to the prior-year quarter as a result of the cold weather conditions. At € 6,985.0m, EVN’s total assets rose were up 1.7% from the last balance sheet date September 30th, 2011. This development was mainly related to an increase in the valuation of the investments in equity accounted investees. Equity was up 1.0%, to € 3,206.5m, corresponding to an equity ratio of 45.9%. Net debt was € 1,724.4m as at December 31st, 2011, representing a gearing ratio of 53.8%.

EVN increased its total output capacity by 15.0% to 163 MW through several projects and supplies now renewable energy to around 100,000 households. Since November 2011 the Tattendorf wind park with eight wind turbines and a total capacity of 16 MW has been feeding electricity into the grid. As of January 2012, EVN also purchased an existing wind park in Pöttelsdorf with four wind turbines and a total capacity of 9.2 MW. During the period under review, EVN together with Wien Energie initiated the implementation of a new wind park project in Glinzendorf with an output of 18 MW, which is scheduled to come on stream in August 2012.

Following the first quarter of 2011/12, it is expected that the results from operating activities for 2011/12 matches the previous year’s performance in spite of the difficult and continuing uncertain overall economic and energy sector environment. The Group net profit is also anticipated to be at the same level as in the prior year.

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