EQS-News: EVN AG: Business development in the first quarter of 2022/23
EQS-News: EVN AG: Business development in the first quarter of 2022/23
EQS-News: EVN AG / Key word(s): Quarter Results
EVN AG: Business development in the first quarter of 2022/23
21.02.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Highlights
• Diversified business model supports solid Group net result; positive
effects from the valuation of hedges for renewable generation as of 31
December 2022
• First quarter loss of EUR –70.5m for the supply company due to ongoing
distortions on the energy markets
• Wind power and photovoltaic projects with a combined capacity of 120
MW currently under construction in Lower Austria
• Installation of e-charging infrastructure on the parking areas of the
SPAR retail chain and renewable energy supplies for the charging
points
• Investment programme with over EUR 500m per year at a historically
high level; roughly three-fourths in Lower Austria with focus on
network infrastructure, renewable generation and drinking water
supplies
Key results
• Revenue: +30.3% to EUR 1,174.3m
• EBIT: +55.3% to EUR 201.1m
• Group net result: +83.2% to EUR 149.4m
• Net debt: EUR 1,580.7m (30 September 2022: EUR 1,245.1m)
Energy sector environment
The temperature-related demand for energy was clearly below the previous
year and long-term average in all three EVN markets during the first
quarter of 2022/23. Market distortions with historically high prices and
volatility continued to influence the energy sector throughout the entire
reporting period. The tense price situation on the wholesale natural gas
market and forward electricity market has eased since the beginning of
2023 due to the mild weather and resulting high natural gas storage levels
combined with the increasing availability of European power plant capacity
and parallel decline in the demand for energy.
Increase in revenue, EBITDA and Group net result
Revenue recorded by the EVN Group rose by 30.3% to EUR 1,174.3m in the
first quarter of 2022/23. This increase was supported, above all, by price
effects in renewable generation, valuation effects of hedges and higher
prices at EVN Wärme. In South East Europe, higher network tariffs and the
increase of electricity prices in the regulated household customer segment
in North Macedonia led to higher revenue which, however, was reduced by
temperature-related declines in network and energy sales volumes. Growth
was also recorded in the international project business due to progress on
the major project in Kuwait. Other operating income rose slightly by 2.6%
year-on-year to EUR 29.7m for the reporting period.
The cost of electricity purchases from third parties and primary energy
expenses totalled EUR 553.3m and remained nearly unchanged at the prior
year level. The weather-related volume decline in South East Europe was
largely offset by increases in natural gas procurement and at EVN Wärme.
The cost of materials and services rose by 64.7% to EUR 182.2m in line
with revenue growth in the international project business.
Personnel expenses were 4.9% higher year-on-year at EUR 95.8m due to
adjustments required by collective bargaining agreements. The average
number of employees was nearly unchanged at 7,148 (previous year: 7,145
employees). The levy from the Energy Crisis Contribution-Electricity on
the surplus proceeds earned from electricity generation which was payable
for the first time in December 2022 and higher receivables write-offs in
North Macedonia were responsible for an increase of 89.7% in other
operating expenses to EUR 47.7m.
The share of results from equity accounted investees with operational
nature equalled EUR –43.2m in the first quarter of 2022/23 (previous year:
EUR 52.0m). This sharp drop is attributable to the energy supply company
EVN KG, where business development was massively influenced by a
year-on-year increase in procurement costs and the lower valuation of
hedges as of 31 December 2022. Since higher procurement costs can only be
passed on to customers with a delay, earnings at EVN KG are expected to be
negative in the 2022/23 financial year.
Based on these developments, EBITDA recorded by the EVN Group rose by
39.6% year-on-year to EUR 281.7m in the first quarter of 2022/23.
Investments led to an increase of 2.3% in scheduled depreciation and
amortisation to EUR 80.6m. The effects of impairment testing in the first
quarter of the previous year were influenced by a revaluation of EUR 6.4m
to the Kavarna wind park in Bulgaria. In total, EBIT rose by 55.3% to EUR
201.1m.
Financial results, which were negatively influenced by foreign exchange
effects in the previous year, improved to EUR –10.2m (previous year: EUR
–16.4m). The result before income tax equalled EUR 191.0m for the
reporting period and was 68.9% higher than the previous year. After the
deduction of EUR 36.2m (previous year: EUR 28.0m) in income tax expense
and the earnings attributable to non-controlling interests, Group net
result for the period equalled EUR 149.4m. That represents a year-on-year
increase of 83.2%.
Solid balance sheet structure
EVN’s capital structure remains solid and stable, but net debt rose to EUR
1,580.7m as of 31 December 2022. This increase resulted from the ongoing
high level of investments and, above all, from a liquidity settlement for
EVN KG to cover working capital requirements.
Energy. Water. Life. – Developments in the energy and environmental
services business
Energy business
EVN’s electricity generation declined by 21.0% year-on-year to 761 GWh in
the first quarter of 2022/23. Renewable generation was 4.6% lower at 500
GWh despite a higher volume of water flows due to a substantial drop in
wind flows. The use of the Theiss power plant for network stabilisation
and, in turn, thermal generation declined during the reporting period. The
share of renewable generation rose to 65.6% (previous year: 54.4%).
The wind park in Japons, which was rebuilt as part of a repowering, was
commissioned in January 2023 (installed capacity: 12.6 MW). EVN is
currently working on the realisation of several wind power and
photovoltaic projects in Lower Austria. These projects will raise EVN‘s
total installed capacity by 120 MW and move the company a great step
forward to meeting its expansion goals by 2030.
E-mobility is steadily becoming a business area with future potential. EVN
recently signed an agreement with the SPAR retail chain to install an
e-charging infrastructure on its parking areas and to supply the charging
points with renewable energy.
Environmental and water business
Investments in drinking water supplies continue to focus on the planning
and construction of transport and connecting pipelines to improve and
protect supply security.
In the international project business, WTE Wassertechnik was working on
the planning and construction of 14 projects for wastewater, drinking
water and thermal sewage sludge treatment in Germany, Poland, Lithuania,
Romania, Bahrain and Kuwait as of 31 December 2022.
Confirmation of the outlook for the 2022/23 financial year
EVN expects Group net result for the 2022/23 financial year – under the
assumption of a stable regulatory environment and predictable energy
sector and tax frameworks – to be in line with the previous year and
within a range of roughly EUR 190m to 250m. This estimate initially does
not include the earnings contribution from the investment in Verbund AG
for the 2022 financial year. EVN’s dividend from operating activities is
expected to at least equal the previous year (EUR 0.52 per share), whereby
EVN wants its shareholders to appropriately participate in any additional
earnings growth.
Investments in the core areas of networks, renewable generation and
drinking water supplies will be carried out as planned and, in spite of
current macroeconomic and energy sector developments, remain at a level
exceeding EUR 500m per year. These activities will strengthen EVN‘s
position as the leading infrastructure operator in Lower Austria and form
the basis for further growth in a stable home market.
The Letter to Shareholders on the first quarter of 2022/23 is available
under www.investor.evn.at.
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21.02.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: EVN AG
EVN Platz
2344 Maria Enzersdorf
Austria
Phone: +43-2236-200-12294
E-mail: info@evn.at
Internet: www.evn.at
ISIN: AT0000741053
WKN: 074105
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1564279
End of News EQS News Service
1564279 21.02.2023 CET/CEST
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