EQS-News: EVN AG: Business development in the first quarter of 2021/22
EQS-News: EVN AG / Key word(s): Quarter Results
EVN AG: Business development in the first quarter of 2021/22
25.02.2022 / 07:30
The issuer is solely responsible for the content of this announcement.
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Highlights
* Distortions on energy markets lead to decline in Group net result
* Weather-related higher energy demand in the core markets and very good
wind flows
* Construction of the Schildberg wind park and repowering of the Japons
wind park, each with 12.6 MW
* Share of renewable generation reaches 54.4%
* Commissioning of natural filter plant in Petronell on schedule
* Increase of up to EUR 500m in annual investments; roughly
three-fourths in Lower Austria with focus on network infrastructure,
renewable generation and drinking water supplies
Key results
* Revenue: +49.1% to EUR 900.9m
* EBITDA: -39.5% to EUR 201.9m
* EBIT: -4,7% to EUR 129.5m
* Group net result: -12.7% to EUR 81.5m
* Net debt: EUR 905.9m (30 September 2021: EUR 813.8m)
Energy sector environment
The temperature-related energy demand in EVN’s three core markets exceeded
both the previous year and the long-term average in the first quarter of
2021/22. The market prices for natural gas, CO[2] emission certificates
and base as well as peak load electricity rose to historic highs. These
energy market distortions had different effects on EVN’s diversified
business areas: Renewable generation benefited but distribution earnings
declined, while results in South East Europe were negatively affected by
the increase in market prices and the related significantly higher costs
for network loss coverage.
Increase in revenue, EBIT and Group net result below previous year
Revenue recorded by the EVN Group rose by 49.1% to EUR 900.9m in the first
quarter of 2021/22. The sharp rise in electricity prices was the main
driver for this growth and also formed the basis for substantially higher
energy sales in South East Europe. In addition to weather-related volume
effects in all three core markets, the network tariffs set by E-Control in
Austria as of 1 January 2021 had a positive effect. The upward trend in
wholesale prices was also responsible for an increase in the revenue from
renewable generation. Another factor involved the more frequent use of the
Theiss power plant by the Austrian transmission network operator for
network stabilisation.
Other operating income fell by 79.0% year-on-year to EUR 28.9m, chiefly
due to the absence of a positive non-recurring effect from the previous
year which resulted from the takeover of an additional electricity
procurement right.
Similar to the development of revenue, the cost of electricity purchases
from third parties and primary energy expenses – which totalled EUR 552.8m
(previous year: EUR 242.2m) – increased substantially. This development
resulted, above all, from higher energy procurement costs in South East
Europe, higher primary energy expenses from the above-mentioned, more
frequent use of the Theiss power plant and higher procurement costs at EVN
Wärme. The cost of materials and services declined by 3.9% to EUR 110.6m
based on a slight reduction in construction activity in the international
project business.
Personnel expenses were 4.1% higher year-on-year at EUR 91.3m. The
increase resulted entirely from adjustments required by collective
bargaining agreements, while the average number of employees declined
slightly to 7,145 (previous year: 7,152 employees). Other operating
expenses rose by 7.4% to EUR 25.2m due to higher receivables write-offs in
North Macedonia.
The share of results from equity accounted investees with operational
nature fell to EUR 52.0m (previous year: EUR 60.2m). Declines were
recorded mainly by Energie Burgenland and the distribution business in
Austria and Germany. EBITDA recorded by the EVN Group fell by 39.5%
year-on-year to EUR 201.9m in the first quarter of 2021/22.
The sale of EVN’s 49% investment in the Walsum 10 power plant at the end
of the 2020/21 financial year contributed to a reduction of 7.1% in
scheduled depreciation and amortisation to EUR 78.8m. A revaluation of EUR
6.4m was recognised to the Kavarna wind park in Bulgaria to reflect
changed regulatory framework conditions in combination with increased
electricity prices while, in the previous year, the takeover of an
additional electricity procurement right resulted in the recognition of
impairment losses totalling EUR 113.1m. In total, EBIT declined by 4.7% to
EUR 129.5m.
Financial results dropped to EUR -16.4m as a result of foreign exchange
developments (previous year: EUR -8.0m). The result before income tax
amounted to EUR 113.1m and was 11.6% lower than the first quarter of
2020/21. After the deduction of EUR 28.0m (previous year: EUR 26.4m) in
income tax expense and the earnings attributable to non-controlling
interests, Group result for the period equalled EUR 81.5m. This represents
a year-on-year decline of 12.7%.
Solid balance sheet structure
EVN has a solid and stable capital structure which provides a sound
foundation for realisation of the extensive investment programme in the
areas of network infrastructure, renewable generation and drinking water
supplies over the coming years. Net debt totalled EUR 905.9m as of 31
December 2021.
Energy. Water. Life. – Developments in the energy and environmental
services business
Energy business
EVN’s electricity generation declined by 8.0% year-on-year to 963 GWh in
the first quarter of 2021/22. Renewable generation equalled 524 GWh and
represented 54.4% of the total (previous year: 51.9%). Wind flows topped
the long-term average and, consequently, were substantially higher than
the low previous year. Water flows were lower in year-on-year comparison.
Electricity generation in the thermal power plants fell by 12.9% to 439
GWh due to the sale of the 49% investment in the Walsum 10 power plant.
In line with the Strategy 2030, EVN plans to increase the Group’s wind
power capacity by 350 MW to 750 MW by 2030 if energy sector conditions are
appropriate. This goal will be met through projects in Lower Austria and
Bulgaria. Current assignments involve the construction of a wind park in
Schildberg and the repowering of an existing wind park in Japons, each
with an installed capacity of 12.6 MW. Photovoltaic projects will also be
realised in Lower Austria, Bulgaria and North Macedonia, with a Group-wide
installed capacity of 300 MW.
Environmental and water business
Investments in drinking water supplies remain focused on the expansion of
the cross-regional pipeline networks. The first section of the planned 60
km transport pipeline from Krems to Zwettl, which runs from Pallweis to
Zwettl, was completed in December 2021. This project is intended to
provide long-term protection for water supplies in the Waldviertel and
Weinviertel regions. EVN’s fifth natural filter plant, which is located in
Petronell, is currently undergoing stepwise commissioning, and full
commercial operations are expected to begin in March 2022. This plant will
supply ten communities east of Vienna International Airport with drinking
water that is naturally softened without the use of chemicals.
In the international project business, WTE Wassertechnik was working on
the planning and construction of 11 projects for wastewater, drinking
water and thermal sewage sludge treatment in Germany, Poland, Lithuania,
Romania, Bahrain and Kuwait as of 31 December 2021. Three further
contracts for thermal sludge utilisation plants in Germany are being
realised by the 50:50 joint venture sludge2energy.
Outlook confirmed for the 2021/22 financial year
EVN expects Group net result of approximately EUR 200m to EUR 240m for the
2021/22 financial year. However, stronger or sustained distortions on the
energy markets could have a negative influence on expected results.
Investments will total approximately EUR 500m and concentrate, above all,
on the regulated and stable businesses in the areas of network
infrastructure, renewable generation and drinking water supplies. These
activities are intended to protect EVN’s solid business foundation and
support continued growth.
The Letter to Shareholders on the first quarter of 2021/22 is available
under www.investor.evn.at.
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25.02.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com
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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: Vienna Stock Exchange (Official Market)
EQS News ID: 1287941
End of News EQS News Service
1287941 25.02.2022
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