EQS-News: EVN AG / Key word(s): Annual Results
Effects of the corona crisis
Group net result above previous year
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
Energy. Water. Life. - Developments in the energy and environmental services business
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 CO2 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
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
For the complete Full Report on the 2020/21 financial year, see www.investor.evn.at.
16.12.2021 This Corporate News was distributed by EQS Group AG. www.eqs.com
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