DGAP-News: EVN AG / Key word(s): Quarter Results EVN AG: Business development in the 1st Quarter 2012/13 28.02.2013 / 08:00 --------------------------------------------------------------------- (October 1st, 2012 - December 31st, 2012) - Biomass district heating plant in Steyr supplies customers with heat and electricity - First construction phase of the natural gas transport pipeline Westschiene completed - EVN Netz GmbH acquired a 15%-stake in AGGM Austria Gas Grid Management AG - Contract awarded for planning and construction of three further wastewater treatment plants in Romania - Emission of promissory note loans of EUR 121.5m - On-going share buyback programme extended and repurchase volume increased by further 1,000,000 shares - Prior-year figures were adjusted according to IAS 19 - Outlook 2012/13: results from operating activities and Group net profit are expected to be below the prior-year level 2012/13 +/- EURm Q. 1 in % Revenue 794.0 -4.3 EBITDA 173.5 -0.5 Results from operating activities (EBIT) 116.2 4.3 Group net profit 71.5 -21.8 Energy sector development The reporting period failed to bring any improvement in the unfavourable conditions on the European electricity market or the weak economic environment. The relatively warm weather and an unexpected high supply of electricity from renewable energy sources led to a decline in the forward prices for electricity. In contrast, oil and natural gas prices remained at a high level and the generation of electricity from gas-fired power plants in Europe is therefore still not profitable. The demand for electricity is covered by heavily subsidised generation from renewable energy sources and from existing coal-fired power plants, which have become comparatively more attractive due to the decline in the price of coal and CO2 emission certificates. Lower gas trading, mild weather and decreased project implementation volumes EVN recorded a 4.3% decline in revenue to EUR 794.0m for the first quarter of the 2012/13 financial year. Revenue in the energy business was negatively influenced by several factors: marketing sales volumes of natural gas were lower than the previous year and electricity sales to end consumers decreased as a result of the significantly milder weather in South Eastern Europe, the weak economy and improved energy efficiency. Revenue in the Environmental Services segment fell following the conclusion of several international projects in the previous year. Stable EBITDA, higher EBIT but Group net profit below prior-year level In spite of lower revenue, EVN achieved a stable EBITDA at EUR 173.5m compared to the prior-year figure. This development can be mainly attributed to the decrease in the item 'Electricity purchases and primary energy expenses' as well as higher other operating income. Depreciation and amortisation fell by 9.0% to EUR 57.2m. The comparable prior-year figures were negatively affected by an impairment charge of EUR 8.0m to the biomass pilot plant in Dürnrohr. As a consequence of these developments, the results from operating activities were up 4.3% from the level of the previous year, to EUR 116.2m. The financial results dropped from EUR 13.1m to EUR -11.7m, primarily due to the negative contribution from EconGas. Subsequently, the Group net profit fell by 21.8% to EUR 71.5m. Positive cash flow development, stable equity, higher gearing In the first quarter of the 2012/13 financial year, the gross cash flow rose by 1.4% to EUR 151.6m, in spite of the decline in profit before income tax. Net cash flow from operating activities rose from EUR 25.9m to EUR 54.7m due to a lower year-on-year increase in working capital as a result of the mild weather, especially in South Eastern Europe. EVN's balance sheet total equalled EUR 7,204.7m as of December 31st, 2012, which is 5.0%, higher than the level on September 30th, 2012. Equity rose by 5.2%, to EUR 3,170.9m and the equity ratio of 44.0% can be named as stable. Based on a net debt of EUR 1,739.4m (September 30th, 2012: EUR 1,703.7m), gearing equalled 54.9%, which represents an improvement of 1.6 percentage points over the value on September 30th, 2012. Outlook From the current point of view, we expect no additional use of EVN's fully depreciated gas-fired power plants in 2012/13 - with the exception of power supplies to the Federal Network Agency in Germany. In addition to the above-mentioned factors in the energy sector, the following issues will influence the development of business at EVN during the remaining three quarters of the 2012/13 financial year: in Austria, the regulatory authorities reduced the electricity network tariffs by an average of 0.4% and natural gas network tariffs by 2.8% as of January 1st, 2013. In Bulgaria, the high subsidies to renewable electricity significantly increase the electricity procurement costs. On this basis, the rise of end customer prices for electricity by the regulator in July 2012 led to social uncertainty and demonstrations in the current heating period. We expect the forthcoming parliamentary elections to become the basis of normalisation. Legal regulations governing renewable energy require the reimbursement of these additional costs by end customers. The resulting expected claims are being recognised as receivables. Similar to the first quarter of 2012/13, the winter at the start of 2013 was also significantly milder than the previous year. This is true, above all, for South Eastern Europe. Based on the current point of view and given the present unfavourable economic and energy sector conditions, EVN expects results from operating activities and Group net profit for 2012/13 to be below the prior-year level. EVN's Letter to Shareholders Q. 1 2012/13 is available at www.investor.evn.at. End of Corporate News --------------------------------------------------------------------- 28.02.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory 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@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 --------------------------------------------------------------------- 202527 28.02.2013
DGAP-News: EVN AG: Business development in the 1st Quarter 2012/13
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