EVN AG / Half Year Results/Half Year Results
27.05.2010 08:01
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(October 1, 2009 - March 31, 2010)
>Sales development in the energy business shaped by cold weather
>Conclusion of all projects encompassed in the Energy Concept for the
Lower Austrian Central Region
>First international hydropower project with Verbund AG
>New contract for construction of a wastewater purification plant in Cyprus
>Positive outlook confirmed for the 2009/10 financial year
2009/10
HY. 1
Change
EURm in %
Revenue 1,625.1 +0.6
EBITDA 312.9 +12.8
EBIT 194.4 +5.7
Group net profit 208.5 +23.5
Compared to the same period in the previous year, the energy sector
environment in the first half-year of 2009/10 (October 1, 2009 - March 31,
2010) was characterised by lower temperatures in Austria and Macedonia and
higher temperatures in Bulgaria. Despite the slight recovery of the global
economy in the last quarter 2009 primary energy and wholesale electricity
prices as well as the costs of CO2 emission certificates remained unchanged
below the previous year's level.
Increase in EBIT and group net profit continuous to be strong
In the 1st half-year 2009/10, EVN's total revenue rose by 0.6% to EUR
1,625.1m despite the difficult market environment. Whereas electricity
tariffs in Austria remained stable in the 1st half-year 2009/10, gas prices
could be reduced by about 7.0% on December 1, 2009, following previous
selling price decreases in January and March 2009. The comparatively cold
winter led to greater energy demand for electricity, gas and heat. In the
Energy business, revenue increased in the Network Infrastructure Austria
and the Energy Supply South East Europe segments but mainly declined in the
Generation segment due to declining market prices and the lower volume of
electricity generated by renewable energy sources. Total revenue of the
Environmental Services segment slightly fell due to a weather-related
decline in the international project business dispite increases from the
ongoing operation of the waste incineration plant.
Despite higher sales volumes in the energy business, the item 'Electricity
purchases and primary energy expenses' decreased significantly. This can be
attributed to the declining wholesale prices for electricity and primary
energy. The item 'Cost of materials and services' fell respectively.
Despite a slight increase in personnel expenses and the rise in
depreciation and amortisation mainly as a consequence of the high level of
investments within the previous years and the initial consolidation of
B.net and despite of higher other operating expenses, EBIT climbed 5.7% to
EUR 194.4m compared to the previous year's level.
The financial results developed extremely positively and amounted EUR
71.7m, up EUR 40.4m compared to the prior-year figure. Income from
investments in associates included at equity rose; income from other
investments was above the previous year's level, due to the higher dividend
distributed by Verbund AG. Interest income improved and the item 'Other
financial results', which had been negatively affected in the previous year
by the financial and economic crisis, also made a positive contribution.
Accordingly, the profit before income tax totalled EUR 266.1m, a rise of
23.6% from the previous year's level. Hence, group net profit amounted to
EUR 208.5m, an increase of 23.5%.
The gross cash value rose in the first half-year 2009/10, climbing by 19.9%
to EUR 288.9m. Since the balance sheet date on September 30, 2009, the
balance sheet total of EVN rose by 2.1% to EUR 6,836.1m. Equity decreased
by 0.6% to EUR 3,109.7m. The equity ratio amounted to 45.5%. Taking account
of the net debt of EUR 1,514.2m, the gearing at the reporting date of March
31, 2010 was 48.7%, significantly lower than at the same period in the
previous year (54.0%).
Projects for the Lower Austrian Central Region have been concluded
Two years ago EVN announced several projects for the Lower Austrian Central
Region with an investment volume totalling more than EUR 200m. By putting
the remaining three facilities into operation, EVN has completely and
successfully implemented all the planned projects. Besides the heating
transmission pipeline from Dürnrohr to Sankt Pölten with a length of 31
kilometres, which was put in operation the beginning of October 2009, the
third thermal waste utilisation line in Zwentendorf featuring a capacity of
225,000 tonnes was put into full operation and had thermally treated some
65,000 tonnes of waste by the end of March. Furthermore, a tubular belt
conveyor began operating in March 2010 in order to optimize the procurement
and delivery of fuel for the power plant in Dürnrohr. In the future, 50% of
the energy sources will be transported by the environmentally-friendly
waterways and then brought from the Danube river bank to the Dürnrohr power
station using a coated conveyor belt.
Realisation of and new projects in the Environmental Services segments
On March 3, 2010, after only 22 months of construction, the official
opening ceremony of the new wastewater purification plant for the
municipality of Tulln, Lower Austria, took place. The project foresees a
two-phased construction plan. In the initial extension stage, which has
already been put into operation, the wastewater of 22,500 population
equivalents will be treated on a fully biological basis. In a further
extension stage, the plant will be expanded to up to 45,000 population
equivalents. The total investments costs for the project amount to EUR
11.5m. At the beginning of February 2010, EVN in its role as a member of a
consortium with a local construction company was awarded a contract to
build a new wastewater purification plant in North Nicosia, Cyprus, and
subsequently operate it for a period of ten years. The project involves a
total investment volume of EUR 45.0m and a capacity of approximately 30,000
m³ per day or 270,000 population equivalents, and will include a combined
sludge treatment and biogas facility. Construction is expected to be
completed in 27 months.
First international hydropower project with Verbund AG
On April 21, 2010, the first international partnership between EVN and
Verbund AG was concluded with the sign-ing of the syndicate agreement for
the construction of the Ashta hydropower station in Albania. Both companies
will own a 50% shareholding in the power plant on the Drin River, to be
built at a total cost of about EUR 200m. The facility is conceived to boast
a capacity of more than 50 MW and is designed to generate more than 240
mil-lion kilowatt hours of electricity to supply around 100,000 Albanian
households.
Outlook
After the first six months of the new financial year, we expect - from
today's perspective - a Group net profit for 2009/10 as a whole exceeding
the comparable figure for the previous year, despite difficult and the
continuous uncertain development of overall economic conditions and high
price volatility in the energy sector.
The complete Letter to Shareholders HY. 1 2009/10 is available at
www.investor.evn.at.
EVN AG
Corporate Communications
EVN Group
Stefan Zach
EVN Platz
2344 Maria Enzersdorf
Tel.: +43 2236 200-122 94
Fax: +43 2236 200-822 94
Mobil: +43 676 810 322 94
stefan.zach@evn.at
www.evn.at
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Language: English
Company: EVN AG
EVN Platz
2344 Maria Enzersdorf
Ãsterreich
Phone: +43-2236-200-12294
Fax: +43-2236-200-82294
E-mail: info@evn.at
Internet: www.evn.at
ISIN: AT0000741053
WKN: 074105
Indices: ATX
Listed: Foreign Exchange(s) Wien
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DGAP-News: EVN AG: Development of business in the first half-year of 2009/10
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