DGAP-News: EVN AG: Business performance in the 2012/13 financial year
(firmenpresse) - DGAP-News: EVN AG / Key word(s): Final Results
EVN AG: Business performance in the 2012/13 financial year
12.12.2013 / 08:00
---------------------------------------------------------------------
(1 October 2012 - 30 September 2013)
Highlights
* Operating results close to prior-year's level
* Group net profit down 41.2% due to negative effects in financial
results
* Strong balance sheet with equity ratio of 43.2 %
* Investments into security of supply
* Increase in generation capacity (100th windpower plant in Lower
Austria, hydropower plants in Ashta, Albania, and Macedonia)
* 785 MW reserve capacity assigned for Southern Germany
* Opening of wastewater purification plants in Warsaw, Poland, and
expansion in?entjernej, Slovenia
* Announcement of a reduction in electricity and natural gas end customer
prices by 3.6% and launch of an energy efficiency campaign
Key figures
Revenue: -3.2% to EUR 2,755.0m
EBITDA: -3.6% to EUR 457.6m
Results from operating activities (EBIT): -2.1% to EUR 218.5m
Group net profit: -41.2% to EUR 114.7m
Energy sector environment
The development of primary energy prices differed during the 2012/13
financial year. The average price for crude oil in euros fell due to high
stock and low demand because of the general economic weakness. Similar
reasons led to a decline in coal prices. In contrast, average exchange
prices for natural gas rose by more than 10%, while the prices for CO2
certificates dropped further.
The international energy markets were characterised by a further drop in
both spot market and forward prices for base load and peak load electricity
in 2012/13. The main factor for this development was an increase in
electricity generation from renewable energy sources and the resulting
surplus production capacity, which led to extremely volatile price
developments. In the field of thermal generation spreads continued to be at
low or even negative levels.
In August 2013, EVN together with its partners of EnergieAllianz, announced
the start of an energy efficiency campaign that includes, among others,
support for the purchase of energy-efficient equipment and energy services.
The start of this campaign also included the announcement of an average
reduction of 3.6% in electricity and natural gas prices for households and
small business customers as of 1 October 2013.
Revenue decline with different development of prices
The EVN Group generated revenue of EUR 2,755.0m in 2012/13, which
represents a decline of EUR 91.5m, or 3.2%, compared with the previous
year. In the energy business, decreasing electricity prices had a negative
effect in Austria. This was contrasted by higher revenue in Macedonia
following price increases in the prior year. Revenue in the environmental
business was substantially lower year-on-year due to a drop in project
volumes. The revenue generated outside Austria fell by EUR 45.7m, or 3.8%,
to EUR 1,152.1m. This represents a decline in the share of Group revenue
from 42.1% in the previous year to 41.8%.
EBITDA and EBIT close to prior-year's level
EBITDA decreased by 3.6% to EUR 457.6m. Lower operating expenses for
electricity purchases and primary energy, which were down 1.1% to EUR
1,612.6m and for third-party services and other materials and ser-vices,
which were down 15.5% to EUR 295.8m, compensated for the lower revenue that
has been mentioned above. The decline in electricity purchases and primaryenergy expenses resulted primarily from a decrease in the volumes of
electricity purchased in South Eastern Europe due to the milder winter and
the end of fixed tariffs for renewable electricity in Austria. The
development of third-party services and other materials and services is
attributable chiefly to a year-on-year decline in the volume of implemented
projects in the environmental business. Results from operating activities
(EBIT) declined 2.1% year-on-year to EUR 218.5m.
Financial results exerted pressure on Group net profit
EVN's Group net profit was burdened by the financial results. This led to a
decline of 41.2% down to EUR 114.7m. Several factors were responsible for
the EUR 74.6m reduction in financial results to EUR -38.1m. The negative
spread between natural gas procurement and sales prices and offtake
commitments of EconGas resulted in a negative contribution of EUR 19.7m for
EVN. WEEV Beteiligungs GmbH, which holds the Verbund shares purchased
during the 2010 capital increase, recorded an impairment loss of EUR 29.6m
on the market valuation of these shares. The sale of the 50% stake in
Devoll Hydropower ShA to the previous partner Statkraft A.S. had a negative
effect of EUR 27.6m on earnings. Shkodra Region Beteiligungsholding GmbH,
which holds the investment in the Ashta hydropower plant in Albania,
recorded a negative earnings contribution of EUR 20.4m that was also
reflected in financial results.
Positive cash flow development and stable balance sheet structure
Gross cash flow rose by EUR 73.3m, or 15.3%, to EUR 553.6m in the financial
year 2012/13, in spite of the decline in profit before tax. This
development was supported, above all, by non-cash effects related to the
share of profit from equity accounted investees and from changes in
non-current provisions. Combined with a lower year-on-year increase in
working capital as of 30 September 2013, cash flow from operating
activities increased by 21.8% to EUR 561.7m.
Net debt decreased by EUR 141.4m and totalled EUR 1,562.3m as of 30
September 2013. Thus, gearing fell from 56.5% to 50.9%. Equity rose
compared to the previous year by EUR 52.8m to EUR 3,066.5m; equity ratio
was close to the prior year level at 43.2% (previous year: 43.9%)
Focus on security of supply, expansion of renewable energy
Investments focused on security of supply. More than one-half of the
investments in 2012/13 were directed to the expansion and modernising of
Austrian network Infrastructure. Abroad the focus remained on the
improvement of grid efficiency.
Generation capacities could be increased in the reporting period. At a site
near Deutsch-Wagram, Lower Austria, EVN started operations of its 100th
wind turbine. A further windpark in Prellenkirchen is currently under
construction. EVN will then have a total of 14 windparks with a combined
capacity of 213 MW in operation, which can supply more than 100,000
households with environmentally friendly electricity. In Albania, the
hydropower plant Ashta was put into operations, representing a capacity of
26 MW for EVN. In Macedonia, EVN took over seven revitalised small-scaled
hydropower plants, which were leased to third parties up to January 2013.
EVN now operates 11 small-scaled hydropower plants with a total capacity of
48 MW.
Over the next three winter half-years, EVN will provide 785 MW of reserve
capacity each year through its gas-fired power plants Theißand Korneuburg
for southern Germany.
In South Eastern Europe, the regulatory authorities reduced end customer
prices for electricity by an average of 3.0% in Macedonia and by an average
of 4.2% in Bulgaria within the context of the annual price adjust-ments.
The new mechanism to calculate compensation for the added costs of
renewable electricity in Bulgaria is not expected to result in additional
costs for EVN. The resulting claims are being pursued in arbitration
proceedings initiated with the International Centre for the Settlement of
Investment Disputes, an institution created by the World Bank.
EVN and its consortium partners opened one of Europe's largest wastewater
purification plants in Warsaw. In July 2013, EVN received a further
contract in Poland. In?entjernej, Slovenia, the existing wastewater
purification plant was enlarged and modernised. Negotiations are currently
in progress with the city of Moscow over the projects for the the waste
incineration plant and the sodium hypochlorite plant.
Outlook
The European energy market is currently undergoing a far-reaching
transformation. The steadily increasing, but volatile generation of energy,
above all from windpower and photovoltaic equipment, is shifting the issue
of supply security in connection with a new market design into the centre
of discussion. Against this backdrop, EVN's strategy is directed to the
consolidation of existing business activities and to the security of
supply, in particular.
The prior period effects that reduced financial results in 2012/13 are
non-recurring, and Group net profit for 2013/14 should therefore exceed the
results for 2012/13. The current distortions in the energy markets will,
nonetheless, prevent a return to the level recorded in recent years. Group
net profit could also be significantly influenced by the development of the
arbitration proceedings with the Bulgarian government and progress on the
projects in Moscow.
The EVN Full report 2012/13 is available at www.investor.evn.at.
End of Corporate News
---------------------------------------------------------------------
12.12.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: EVN AG
EVN Platz
2344 Maria Enzersdorf
Austria
Phone: +43-2236-200-12294
Fax: +43-2236-200-82294
E-mail: info(at)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
---------------------------------------------------------------------
244368 12.12.2013
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 12.12.2013 - 08:00 Uhr
Sprache: Deutsch
News-ID 323679
Anzahl Zeichen: 4427
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 266 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: EVN AG: Business performance in the 2012/13 financial year"
steht unter der journalistisch-redaktionellen Verantwortung von
EVN AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
