DGAP-News: EVN AG / Key word(s): Final Results/Final Results
EVN AG: Business development in the 2010/11 financial year
15.12.2011 / 08:00
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(October 1st, 2010 - September 30th, 2011)
- Higher share of renewable energies in the power generation mix
o Acquisition of a 13% stake in VERBUND-Innkraftwerke GmbH
o Revitalisation of the Schütt small-scale hydropower plant
o Coming on stream of the Markgrafneusiedl wind park
o Opening of EVN's to date largest photovoltaic plant in Bulgaria
- Southern section of the natural gas transport pipeline ('Südschiene')
put into operation, construction start for the western section
('Westschiene')
- Opening of the cogeneration plant in Bulgaria
- Construction begin on Croatia's gas supply
- Realisation of the road map in Macedonia
- First environmental services project in Romania
- Outlook for 2011/12: Operating result and Group net profit at the prior-
year level
EURm 2010/11 Changein %
Revenue 2,729.2 -0.8
EBITDA 471.4 +13.2
Results from operating
activities (EBIT) 218.7 +16.8
Group net profit 189.7 -8.4
In the 2010/11 financial year (October 1st, 2010 - September 30th, 2011),
average prices for crude oil (Brent)which is considered as benchmark for
Europe and the natural gas prices largely linked to the crude oil price
were above the prior-year level due to the positive economic development.
The prices of CO2 emission certificates increased due to the discussion
pertaining to the rise in the European CO2 reduction targets and the
phasing out of nuclear energy in Germany. Whereas spot market prices for
base load and peak load electricity rose by 24.9% and 18.2% respectively,
forward market prices for base load electricity were only slightly above
the previous year, and those for peak load electricity were down 5.5% from
the comparable level of 2009/10.
Revenue slightly below the prior-year level
During the period under review, EVN total revenue of EUR 2,729.2m remained
slightly below the prior-year level. The environmental services business
achieved significant revenue growth as a result of its increased
project activities, but this could not fully compensate for the decrease in
the energy business.
Higher operating result due to one-off effects
The sustainable structural transformation of Europe's energy landscape
affects the valuation of EVN's own power generating capacities. The
impairment tests carried out in the 2010/11 financial year negatively
burdened earnings to the amount of EUR 29.1m. On balance, the operating
result was up 16.8% to EUR 218.7m in spite of the 0.8% drop in revenue and
a 10.2% rise in depreciation and amortisation.
Profit before income tax down year-on-year due to lower financial results
The financial results decreased by 50.0%. Whereas the earnings
contributions increased from equity accounted investees, in particular RAG
and BEWAG, the impairment loss in connection with the Ashta hydropower
plant project negatively affected the financial results. The gain from
other investments also declined in the reporting period, primarily due to
the reduced dividend distributed by VERBUND AG as well as the lower
interest income and other financial result. After deducting the income tax
paid, which fell by 33.8%, and the higher share of noncontrolling
interests, the Group net profit amounted to EUR 189.7m, a decline of 8.4%
from the previous year.
Solid balance sheet structure and stable liquidity situation
In the reporting period the gross cash flow totalled EUR 478.1m, a rise of
2.2% from the prior-year level. The net cash flow from operating activities
could be improved by 4.6% to EUR 522.0m due to the lower funds tied up in
working capital. Total assets were up 2.1% from the last balance sheet date
to EUR 6,870.4m. Equity was also up 5.0%, to EUR 3,176.0m, corresponding to
an equity ratio of 46.2%. Net debt was EUR 1,579.2m as at September 30th,
2011, representing a gearing ratio of 49.7%, a slight rise from the
prior-year level of 48.2%.
Target by 2020: Increase of share of renewable energy in the power
generation mix to 50%
Important steps were taken in the 2010/11 financial year in the field of
renewable energy. In July 2011, EVN acquired a 13.0% stake in the 13 power
plants on the Inn River operated by VERBUND-Innkraftwerke GmbH.
The Schütt small-scale hydropower plant was re-opened in July 2011
following an extensive modernisation programme. Since July 2011, the
Markgrafneusiedl wind park with nine turbines has been feeding electricity
into the power grid. In November 2011, a wind park with eight turbines was
completed in Tattendorf. EVN now operates a total of nine wind parks (80
turbines) with a total capacity of 154 MW which delivers electricity for up
to 90,000 households, making EVN one of the biggest producers of wind power
in Austria. EVN's to date largest photovoltaic plant came on stream in
Bulgaria in July 2011. A 70% stake in the Bulgarian project company
'Gorna Arda' pursuing a hydropower plant project was also acquired in July
2011.
Outlook
No sustainable improvement in the market and industry environment is
anticipated in the 2011/12 financial year. In particular, conditions in the
energy sector will remain challenging. As a consequence, revenue and
operating results in 2011/12 are expected to be at the prior-year level.
The financial results should surpass those of the previous year, and Group
net profit should be comparable to the performance achieved in 2010/11.
EVN Full Report 2010/11 is available at www.investor.evn.at.
Best regards
EVN AG
Head of Corporate Communications
EVN Group
Stefan Zach
EVN Platz
A-2344 Maria Enzersdorf
T: +43 2236 200 - 122 94
F: +43 2236 200 - 822 94
M: +43 676 810 32 294
stefan.zach@evn.at
End of Corporate News
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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
Listed: Foreign Exchange(s) Wien (Amtlicher Handel / Official
Market)
End of News DGAP News-Service
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149797 15.12.2011
DGAP-News: EVN AG: Business development in the 2010/11 financial year
| Source: EQS Group AG