EQS-News: EVN AG: Business development in the 2020/21 financial year
EQS-News: EVN AG / Key word(s): Annual Results
EVN AG: Business development in the 2020/21 financial year
16.12.2021 / 07:30
The issuer is solely responsible for the content of this announcement.
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Highlights
* Group net result of EUR 325.3m based on solid operating performance
and non-cash, non-recurring effects
* EVN Climate Initiative – new climate protection goals agreed with the
Science Based Targets Initiative outline the path to reduce CO[2]
emissions
* Exit from coal-based electricity generation with the sale of the 49%
investment in the Walsum 10 hard coal-fired power plant
* Share of renewable electricity generation: 57.1%
* Investments remain focused on renewable generation, network
infrastructure and drinking water supplies in Lower Austria
* Dividend proposal: EUR 0.52 per share
Key results
* Revenue: +13.6% to EUR 2,394.9m
* EBITDA: +41.7% to EUR 836.5m
* EBIT: +41.5% to EUR 386.4m
* Group net result: +62.9% to EUR 325.3m
* Net debt: EUR 813.8m (30 September 2020: EUR 1,037.7m)
Energy sector environment
The 2020/21 financial year was influenced by a significant year-on-year
decline in temperatures in EVN’s three core markets. The average EEX price
for natural gas nearly tripled due to the generally higher demand for
natural gas, lower natural gas storage volumes in Europe and the economic
restart after the Covid-19-related decline in demand during 2020. Spot
market prices for electricity were nearly twice as high on average as the
previous year owing to a significant increase in primary energy prices as
well as unfavourable wind flows. On the forward market, electricity prices
were three and a half-times higher than the previous year. The market
price for CO[2] emission certificates reflected a year-on-year increase of
almost 70%.
Effects of the corona crisis
Due to its integrated business model and broad customer diversification,
the corona crisis had only a selective negative influence on EVN’s
operating results in 2020/21. However, Covid-19-related lockdowns, travel
restrictions and distortions in international supply chains complicated
the international environmental project business and led in part to
project delays.
Group net result above previous year
Revenue recorded by the EVN Group rose by 13.6% year-on-year to EUR
2,394.9m in 2020/21. This sound development was supported primarily by the
international project business, in particular by the wastewater treatment
project in Kuwait which started in summer 2020. Increased revenue was also
recorded by the energy distribution business in South East Europe and by
network operations: In addition to cooler weather in all three core
markets, the higher network tariffs set by the Austrian E-Control as of 1
January 2021 had also an effect. Revenue growth was also supported by an
increase in electricity generation and by higher electricity prices. The
lower valuation effects from electricity generation hedges represented a
contrary factor.
Other operating income rose to EUR 250.1m (previous year: EUR 64.4m),
chiefly from effects related to the Walsum 10 power plant. EVN took over
additional electricity procurement rights in the first quarter of 2020/21
and, on 30 September 2021, sold its 49% investment in the power plant and
terminated the related electricity purchases.
The cost of electricity purchases from third parties and primary energy
expenses rose by 19.9% to EUR 1,064.7m. The main factors for this upward
trend were higher energy procurement costs in South East Europe and at EVN
Wärme, a higher volume of thermal generation and the related increased use
of primary energy, and rising wholesale prices. Effects from the valuation
of hedges led to a reduction of these costs. The cost of materials and
services increased by 60.7% to EUR 509.2m due to developments in the
international project business. Personnel expenses were 3.4% higher than
the previous year at EUR 361.3m. In addition to adjustments required by
collective bargaining agreements, this increase resulted, among others,
from additional hiring for the wastewater treatment project in Kuwait.
The share of results from equity accounted investees with operational
nature rose to EUR 239.6m (previous year: EUR 94.1m), chiefly due to the
improvement in operating earnings and valuation effects from hedges held
by EVN KG. In addition, the impairment losses recognised to Verbund
Innkraftwerke GmbH and the Ashta hydropower plant in the previous year
(EUR 20.7m, respectively EUR 4.9m) were offset in 2020/21 by revaluations
of EUR 25.3m and EUR 23.8m, respectively.
Based on these developments, EBITDA rose by 41.7% year-on-year to EUR
836.5m. Higher investments and the amortisation of capitalised advance
project costs for the project in Kuwait were responsible for an increase
of 13.8% in scheduled depreciation and amortisation to EUR 337.7m. In
addition, impairment losses of EUR 113.1m were recorded to a thermal power
plant in the first quarter of 2020/21 following the takeover of an
additional electricity procurement right. EBIT for the 2020/21 financial
year totalled EUR 386.4m (previous year: EUR 273.1m).
Financial results declined to EUR -20.0m (previous year: EUR -15.8m)
despite the better performance of the R138 fund and an increase in the
dividend from Verbund AG to EUR 0.75 per share for the 2020 financial year
(previous year: EUR 0.69). The reduction resulted from an interest rate
hedge that was concluded for the entire term of the bank financing for the
Walsum 10 power plant but was terminated prematurely following the sale of
the investment in this power plant as of 30 September 2021.
Group net result for the 2020/21 financial year rose by 62.9% to EUR
325.3m.
Solid balance sheet structure
EVN has a solid and stable capital structure which provides a sound
foundation for the realisation of its investment focal points in Lower
Austria over the coming years. Net debt totalled EUR 813.8m as of 30
September 2021.
Energy. Water. Life. – Developments in the energy and environmental
services business
Energy business
Electricity generation from renewable energy rose by 1.5% to 2,283 GWh in
2020/21. A decline in wind flows compared with the previous year was
offset by an increase in water flows. However, wind power production was
lower year-on-year despite the expansion of capacity. EVN had an installed
wind power capacity of 394 MW as of 30 September 2021 (previous year: 367
MW). This increase resulted from the commissioning of the Kettlasbrunn II
wind park (8.4 MW) in December 2020 and the acquisition of an existing
wind park (18.5 MW) in Lower Austria as of 30 June 2021.
In line with the Strategy 2030, EVN plans to expand the Group’s wind power
capacity to 750 MW by 2030 if energy sector conditions are appropriate.
This goal will be met through projects in Lower Austria and Bulgaria.
Photovoltaic projects will also be realised in Lower Austria, Bulgaria and
North Macedonia, with a Group-wide installed capacity of 300 MW.
Thermal electricity generation rose by 11.7% to 1,715 GWh in 2020/21
because the Walsum 10 power plant was more frequently called on than in
2019/20. Thermal generation capacity reflected a further step towards the
future reduction of CO[2] emissions: As of 30 September 2021, EVN sold its
49% investment in the Walsum 10 hard coal-fired power plant to the joint
venture partner STEAG and ended electricity purchases from this source.
That marked EVN’s final exit from hard coal-based electricity generation.
The Theiss gas-fired power plant remains operational to provide the
Austrian network transmission operator with contractually agreed reserve
capacity, which was used solely for network stabilisation in 2020/21.
Reserve capacity of 470 MW has been contractually agreed for 2021/22.
Environmental and water business
Investments in drinking water supplies remain focused on the expansion of
cross-regional pipeline networks, for example the construction of a new 60
km transport pipeline from Krems to Zwettl to protect water supplies in
the Waldviertel and Weinviertel regions. In addition to other pipeline
projects, EVN is also investing in the construction of its fifth natural
filter plant. It will be commissioned in Petronell during January 2022 and
shall supply ten communities east of Vienna International Airport with
naturally softened drinking water.
As of 30 September 2021, WTE Wassertechnik was working on the planning and
construction of 14 projects in Germany, Poland, Lithuania, Romania,
Bahrain and Kuwait. Included here are four projects for thermal sludge
utilisation plants in Germany.
Outlook for the 2021/22 financial year
EVN expects Group net result to range from approximately EUR 200m to EUR
240m for the 2021/22 financial year. However, stronger or longer
distortions on the energy markets could have a negative impact on expected
earnings. Investments will increase to approximately EUR 500m and will be
focused, above all, on the regulated and stable business areas of network
infrastructure, renewable generation and drinking water supplies. These
activities are intended to protect EVN’s solid business foundation and
support continued growth.
For the complete Full Report on the 2020/21 financial year, see
[1]www.investor.evn.at.
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16.12.2021 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: 1258270
End of News EQS News Service
1258270 16.12.2021
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