DGAP-News: EVN AG / Key word(s): Quarter Results Highlights - Positive business development: - Significantly cooler temperatures in the core markets of Austria, Bulgaria and Macedonia - Stronger demand for supra-regional services and the management of shortages led to increased use of EVN's thermal power plants - Further expansion of windpower business - Expansion of wind generation capacity from present level of 269 MW to over 300 MW in 2017/18 through windparks in Oberwaltersdorf (10 MW) and Sommerein (33 MW), which are currently under construction - Medium-term expansion goal for approximately 500 MW of installed capacity (based on appropriate legal framework) - Focused continuation of investment activities on networks, renewable generation and drinking water - Arbitration decision in favour of the Walsum 10 power plant project in November 2016 - Positive one-off effect from agreement with state-owned Bulgarian electricity company NEK in February 2017
- Revenue: +9.2% to EUR 1,765.5m - EBITDA: +14.8% to EUR 603.0m - EBIT: +0.6% to EUR 301.2m - Group net result: +21.7% to EUR 242.0m
EBITDA, EBIT and Group net result above prior year The cost of electricity purchases from third parties and primary energy expenses rose by EUR 28.2m, or 3.7%, to EUR 793.5m in the first three quarters of 2016/17. The increase resulting from the weather-related higher demand for energy and the additional use of the thermal power plants for network stabilisation was offset in part by the settlement with the Bulgarian state-owned electricity company NEK. The cost of materials and services was EUR 55.5m, or 31.4%, higher at EUR 232.6m. This increase resulted primarily from a valuation allowance on inventories recognised in the second quarter of 2016/17 and the positive development of revenue in the international project business. Scheduled depreciation and amortisation were EUR 3.2m, or 1.6%, lower than the previous year at EUR 196.1m. The effects of impairment testing amounted to EUR 105.8m in the first three quarters of 2016/17 (previous year: EUR 26.8m). The increase is attributable to an impairment loss of EUR 28.9m recognised to the Gorna Arda hydropower plant project in Bulgaria during the first quarter of 2016/17 and to other impairment losses which included EVN's investment in the Walsum 10 power plant (EUR 19.1m), electricity procurement rights and renewable as well as thermal generation assets (EUR 19.9m) and the Bulgarian district heating company TEZ Plovdiv (EUR 26.6m). EBIT totalled EUR 301.2m for the first three quarters of 2016/17 (previous year: EUR 299.3m). Financial results improved to EUR -7.8m due to positive non-recurring effects, higher interest income and a decline in interest expense (previous year: EUR -39.5m). Group net result increased in the first half of 2016/17 by EUR 43.2m, or 21.7%, to EUR 242.0m. Sound balance sheet structure; reduction of financial net debt Developments in the energy and environmental business Besides the expansion of renewable energy capacities, the steady expansion of the network infrastructure in Lower Austria remains a central strategic goal for EVN in order to protect supply security and quality over the long term. Environmental- and water business Activities in EVN's international project business included work on seven wastewater projects in Croatia, Macedonia, Montenegro and the Czech Republic as of 30 June 2017. The projects currently under construction are proceeding as planned. In Russia, the local property company for the South-West Moscow drinking water supply plant was transferred to the city of Moscow, as previously reported, at the end of December 2016 after receipt of the final instalment. This plant was constructed, financed and operated for ten years by EVN. In March 2017 a bidder consortium formed by WTE Wassertechnik GmbH and a Kuwaiti financial investor submitted the best offer in the tender for a wastewater treatment project in Kuwait. The contract has not yet been formally awarded by the tendering authorities, but is expected to take place during the current calendar year. Outlook The complete Letter to Shareholders for the first three quarters of 2016/17 is available under: www.investor.evn.at.
24.08.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
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: | Foreign Exchange(s) Wien (Amtlicher Handel / Official Market) |
End of News | DGAP News Service |
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