DGAP-News: EVN AG / Key word(s): Annual Results
The cost of electricity purchases from third parties and primary energy expenses reflected the development of energy revenue with a decline of 17.9% to EUR 888.3m in 2019/20. The main causal factors included the lower use of primary energy carriers due to the reduction in thermal generation, a decline in wholesale prices and lower electricity purchases.
The cost of materials and services increased by 13.1% to EUR 316.9m due to contract performance in the international project business. Personnel expenses were 3.1% higher than the previous year at EUR 349.3m owing to the annual salary and wage adjustments required by collective bargaining agreements and additional hiring for the realisation by WTE Wassertechnik of the large-scale project in Kuwait.
The share of results from equity accounted investees with operational nature was influenced by contrary developments and fell by 27.8% year-on-year to EUR 94.1m. Negative effects from impairment testing, above all at Verbund Innkraftwerke GmbH, were offset in part by the normalisation of the earnings contribution from EVN KG and positive non-recurring effects at RAG and Energie Burgenland.
Based on these developments, EBITDA declined to EUR 590.4m in 2019/20 (previous year: EUR 631.7m). Scheduled depreciation and amortisation increased as the result of higher investments, the capitalisation of rights of use following the initial application of IFRS 16 and revaluations to property, plant and equipment as of 30 September 2019. The effects of impairment testing - after a positive effect of EUR 41.6m in the previous year - amounted to EUR -20.6m as of 30 September 2020 and were related primarily to EVN's investment in the Walsum 10 power plant.
EBIT for the 2019/20 financial year totalled EUR 273.1m (previous year: EUR 403.5m).
Financial results improved by 47.3% to EUR -15.8m, chiefly due to an increase in the Verbund dividend. Group net result for the 2019/20 financial year equalled EUR 199.8m and was 33.9% below the previous year, which was influenced by non-cash, non-recurring effects.
Thermal electricity generation dropped by 53.2% to 1,535 GWh in 2019/20. The previous year included the electricity production from the Dürnrohr power plant which was terminated prematurely at the beginning of August 2019. Moreover, the Theiss gas-fired power plant was called on less frequently during the reporting period to support network stability. The thermal power plant was under contract in 2019/20 to provide 430 MW of reserve capacity for the Austrian network transmission operator. A thermal sewage sludge utilisation plant and a large-scale photovoltaic plant are currently in planning for the energy location in Dürnrohr.
Environmental and water business
Activities in the international project business included the completion of all requirements at the end of July 2020 for the start of work on the Umm Al Hayman wastewater treatment project. WTE Wassertechnik, the subsidiary responsible for this business, will serve as the general contractor for the planning and construction of a wastewater treatment plant and - together with partners - of a sewage network with pumping stations.
As of 30 September 2020, WTE Wassertechnik was involved in the planning and construction of 12 projects in total in Germany, Poland, Lithuania, Romania, Croatia, Bahrain and Kuwait. Included here are three new projects for thermal sludge utilisation plants in Germany. The sustainable utilisation of sewage sludge opens an attractive new activity field for the international project business, where EVN's long-standing experience in wastewater treatment and thermal waste utilisation create an important strategic advantage.
For the complete Full Report on the 2019/20 financial year, see www.investor.evn.at.
16.12.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Foreign Exchange(s) Vienna Stock Exchange (Official Market)
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