DGAP-News: EVN AG / Key word(s): Half Year Results/Half Year Results
EVN AG: Development of business in the 1st half year 2010/11
26.05.2011 / 08:00
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(October 1, 2010 - March 31, 2011)
* Cold winter in Austria once again
* Significant progress within the framework of the 'roadmap' in Macedonia -
End to court proceedings with the state-owned company ELEM in Macedonia
* Trans-regional natural gas pipeline 'Südschiene' near completion - Start
of construction of 'Westschiene'
* Construction commences on two additional wind parks in Lower Austria
* First projects for the Environmental Services segment in Romania
* Outlook 2010/11: Operating result at the prior-year level, Group net
profit below the previous year
HY. 1 Change
EURm 2010/11 in %
Revenue 1,629.7 +0.3
EBITDA 324.1 +3.6
EBIT 197.2 +1.4
Group net profit 184.0 -11.7
The energy sector environment in the first half year 2010/11 (October 1,
2010 - March 31, 2010) was affected by colder weather in Austria and in
Macedonia as well as higher temperature in Bulgaria. European wholesale
prices for electricity as well as for CO2 certificates were above the
previous year's levels due to the positive economic
development. Likewise primary energy prices significantly increased as a
result of rising demand in the emerging markets, particularly China and
India, as well as limited supply, prices for primary energy were
significantly above previous year's level. The valid forward prices for
electricity increased in the second quarter of 2010/11, but were
still below the prices prevailing in the preceding year.
Declining revenues in Energy business were compensated by the performance
of the Environmental Services business
In the first half year 2010/11 EVN generated a slight increase in total
revenue of 0.3% to EUR 1,629.7m despite the ongoing difficult business
environment. The revenue decline in the Generation segment and Energy Trade
and Supply segment as well as in the Energy Supply South East Europe
segment - the latter relating to the changed reporting of revenue in
Bulgaria - was compensated by significant revenue growth in the
Environmental Services segment as well as in the Network Infrastructure
Austria segment.
Slight improvement of operating profit
Despite the higher sales volumes for electricity, gas and heating, as well
as increased procurement costs in the gas business and in South East
Europe, the costs for 'Electricity purchases and primary energy expenses'
fell. This development is due to the slightly lower electricity procurement
prices in Austria and the changed reporting of this
item in Bulgaria. The significantly higher volume in the international
project business led to a rise in the cost of materials and services. Lower
personnel expenses and decreased level of write-offs on receivables led to
an EBITDA increase in the period under review of 3.6% to EUR 324.1m. In
consideration of an increased amortisation by 7.1%
the EBIT improved by 1.4% to EUR 197.2m.
Group net profit below the previous year
The financial result in the first half of 2010/11 fell by 30.9% to EUR
49.6m. The higher income from investments in equity accounted investees,
especially from RAG, could not compensate for the declining gain from other
investments, in particular the lower dividend paid by VERBUND AG, as well
as for the increase in the interest expenses. After deduction of a 10.0%
lower income tax and the higher share of the profit attributable to
noncontrolling interests, the Group net profit for the period declined by
11.7% to EUR 184.0m.
Capital increase strengthened the financial position; significantly lower
increase of working capital achieved
In the first half of 2010/11, the gross cash flow amounted to EUR 294.5m,
up 1.9% from the prior-year level. The net cash flow from operating
activities could be significantly increased by EUR 144.1m to EUR 221.3m due
to a lower increase of working capital. At EUR 7,356.7m, EVN's total assets
rose by 9.3% compared to the last balance sheet date at September 30, 2010.
Likewise equity rose by 17.0% to EUR 3,540.2m compared to the last balance
sheet date. The equity ratio was 48.1%. Net debt of EUR 1,341.7m
corresponded to a gearing of 37.9% which was significantly below previous
year's level (March 31, 2010) of 48.7%
Significant progress in regards to Macedonia's 'roadmap'
Significant progress was made within the framework of the 'roadmap' settled
between the Macedonia government and EVN in 2010. The Macedonian Parliament
approved a new energy law in February 2011, which
fulfilled the demand of the Energy Community to establish a liberalised
electricity market. In March 2011, the end customer prices for electricity
in Macedonia were raised by about 5.5% of which 89.6% is attributable to
EVN Macedonia. In addition on March 30, 2011, court proceedings pending
since 2008 between the state-owned company ELEM and EVN Macedonia were
ended by a settlement.
Further investments in the home market of Lower Austria
During the reporting period, construction work commenced on the last part
of the southern section of the 120 km trans-regional high-pressure natural
gas transport pipeline 'Südschiene' in Lower Austria, as well as on the 150
km western section 'Westschiene'. Total investments for both pipelines
amount to EUR 264.0m. In the second quarter of 2010/11 work began on two
wind parks in Markgrafneusiedl and Tattendorf, with a total investment of
EUR 57.0m. With a total output of its nine wind parks of 260 MW, EVN is
added to the largest windpower producers in Austria.
Outlook
Considering EVN's performance in the first half of 2010/11, we expect the
result from operating activities for the entire 2010/11 financial year to
match the previous year's performance, despite the ongoing difficult and
uncertain overall business and energy sector environment, rising primary
energy prices and continuing lower wholesale prices on forward markets in
the electricity segment. The Group net profit for 2010/11 as a whole will
likely be below the comparable prior-year figure.
The complete Letter to Shareholders HY. 1 2010/11 is available at
www.investor.evn.at.
End of Corporate News
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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
Listed: Foreign Exchange(s) Wien (Amtlicher Handel / Official
Market)
End of News DGAP News-Service
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126208 26.05.2011
DGAP-News: EVN AG: Development of business in the 1st half year 2010/11
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