EVN AG
EVN AG: Development of business in the first quarter of 2007/08
EVN AG / Quarter Results/Quarter Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Development of business in the first quarter of 2007/08 (October 1 – December 31, 2007) > Weather-related increase in Energy segment sales volumes and revenue > Majority shareholding in Rohöl-Aufsuchungs AG > Initial consolidation of the Bulgarian district heating plant in Plovdiv > Acquisition of the Sunny Beach AD electricity distribution facilities in Bulgaria > Antitrust approval of the district heating cooperation in Sankt Poelten 2007/08 Q. 1 Change in EUR m % Revenue 667.7 +9.1 EBITDA 1 36.8 +16.5 Results from operating activities (EBIT) 92.0 +22.0 Group net profit 77.6 +5.7 The business environment in the energy sector in the period October – December 2007 was characterised by significantly lower temperatures compared to the comparison period of the previous year, increasing wholesale electricity and primary energy prices, strong economic growth in Austria, and a continuation of the very dynamic economic expansion in South East Europe. Against this backdrop, total revenue of the EVN Group was up 9.1% in the 1st quarter 2007/08, to EUR 667.7m. Earnings improved even more, with the results from operating activities increasing by 22.0%, to EUR 92.0m. Although the financial results did not match the high level achieved in the preceding year, the Group net profit climbed by 5.7%, to EUR 77.6m. International expansion continued In the Bulgarian region which EVN supplies with electricity, the EVN Group acquired and initially consolidated the district heating plant EVN Bulgaria Toplofikatsia EAD (TEZ Plovdiv), which has a total heat generation capacity of 1,259 MW thermally and 86 MW electrically. In October 2007, the EVN Group acquired the electricity distribution facilities of the local electricity distribution company Sunny Beach AD on the Black Sea from EVN Bulgaria EP AD, thus fulfilling the terms of the original privatisation agreement. At the end of January 2008, the Albanian government selected EVN as the preferred bidder in an international tender for the granting of a concession to construct hydroelectric power plants on the Devoll River. The purchase of an additional shareholding in Rohöl-Aufsuchungs AG was formally approved by antitrust authorities during the 1st quarter 2007/08. As a result, EVN now has a majority shareholding, or 50.03%, in Rohöl-Aufsuchungs AG and continues to consolidate this shareholding at equity, due to a contractual stipulation which does not permit EVN to exert a controlling influence on the company. Revenue and results In the 1st quarter 2007/08, the EVN Group raised its total revenue by 9.1%, to EUR 667.7m. The Energy segment, which profited from lower temperatures in comparison to the preceding year, was completely responsible for this development. The Environmental Services segment, which is subject to project-related fluctuations, posted a decline in revenue. The results from operating activities (EBIT) rose more impressively than total revenue increased, climbing 22.0% in the 1st quarter 2007/08, to EUR 92.0m. The EBIT margin improved year-on-year from 12.3% to 13.8%. The EBIT of the Energy segment climbed 34.4%, to EUR 90.4m, whereas the EBIT of the Environmental Services segment declined from EUR 8.9m, to EUR 3.1m. The financial results of the EVN Group in the 1st quarter of the 2007/08 financial year declined significantly, by EUR 13.8m to EUR 11.0m. Higher interest income from project financing receivables could not compensate for the lower income from other investments, increased interest expense and lower income from investments in securities and current financial assets. As a consequence of these developments, the profit before income tax of the EVN Group in the 1st quarter 2007/08 amounted to EUR 102.9m, a rise of 2.7% compared to the previous year. Driven by a decrease in the income tax expense and a reduction in the minority interest, the Group net profit increased more substantially than the profit before income tax, rising by 5.7%, to a total of EUR 77.6m. Since the last balance sheet date on September 30, 2007, the balance sheet total of the EVN Group rose by 8.7%, to EUR 6,809.8m. Equity climbed by 10.3%, to EUR 3,325.7m, which in turn led to an increase in the equity ratio from 48.1% to 48.8%. Taking account of the total net debt amounting to EUR 959.8m, the gearing of the EVN Group amounted to 28.9%, which continues to be well below the energy sector average. Revenue and sales volumes in the Energy segment The external revenue of the Energy segment rose 15.4%, to EUR 626.9m, during the period under review. This can primarily be attributed to the comparatively colder temperatures in relation to the 1st quarter 2006/07. The EBIT of the Generation as well as the Energy Procurement and Supply business units improved compared to the preceding year, whereas the EBIT of the Networks business unit remained stable. Project-related decline in Environmental Services revenues In the 1st quarter 2007/08, total revenue of the Environmental Services segment declined by EUR 28.1m, to EUR 35.3m. The completion of the large waste incineration facility in Moscow was only partially offset by the start of various new smaller projects. The profit before income tax fell by EUR 2.5m, to EUR 5.9m. On January 30, 2008, WTE won a contract to modernise and expand a wastewater purification facility in the Polish capital of Warsaw, as part of a consortium with Veolia. The large project will raise total capacity to 450,000 m³ per day, corresponding to 2.1 million population equivalents, effectively doubling the wastewater treatment capacity of the existing plant. As a result, it will become Poland’s largest wastewater purification installation. Outlook Despite the improvement in the results from operating activities in the 1st quarter of the 2007/08 financial year, it will be difficult to match the record results posted in the previous year. In the Energy segment, the strong price rises for primary energy will further increase pressure on margins, and thus lead to a reduced use of EVN’s own thermal power plants. New projects in the Environmental Services segment will partially be delayed until the second half of the financial year. In terms of investments, the energy concept for the Lower Austrian Central Region will be continued as planned. In order to ensure secure energy supplies despite growing demand, investments in Lower Austria’s electricity and gas networks will continue at a high level. Similarly, the investment programme designed to modernise and expand the distribution networks in South East Europe will also proceed as scheduled. The complete Letter to Shareholders Q. 1 2007/08 is available at www.investor.evn.at. EVN AG Corporate Communications EVN Platz A-2344 Maria Enzersdorf Tel.: +43 2236 / 200 - 12294 Fax.: +43 2236 / 200 - 82294 mobile +43 676 / 810 - 32294 stefan.zach@evn.at 28.02.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: EVN AG EVN Platz 2344 Maria Enzersdorf Österreich Phone: +43-2236-200-12294 Fax: +43-2236-200-82294 E-mail: info@evn.at Internet: www.evn.at ISIN: DE0002494200, AT0000741053 WKN: 249420, 878279 Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Stuttgart, München End of News DGAP News-Service ---------------------------------------------------------------------------
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found