EQS-News: EVN AG / Key word(s): Half Year Results
Other operating income fell by 67.1% year-on-year to EUR 54.4m, chiefly due to the absence of a positive non-recurring effect from the previous year which resulted from the takeover of an additional electricity procurement right.
Similar to the development of revenue, the cost of electricity purchases from third parties and primary energy expenses – which totalled EUR 1,314.0m (previous year: EUR 568.7m) – increased substantially. This development resulted, above all, from higher energy procurement costs in South East Europe, above all to cover network losses, as well as an increase in primary energy expenses from the above-mentioned, more frequent use of the Theiss power plant and higher procurement costs at EVN Wärme. The cost of materials and services increased by 20.6% to
Personnel expenses were 1.4% higher year-on-year at EUR 179.4m due to adjustments required by collective bargaining agreements. The average number of employees increased to 7,147 (previous year: 7,140 employees). Other operating expenses rose by 12.4% to EUR 62.4m due to higher receivables write-offs in North Macedonia.
The share of results from equity accounted investees with operational nature fell by 33.0% to EUR 85.2m. A major part of this decline resulted from higher procurement costs for electricity and natural gas at the supply company EVN KG in Austria as well as a lower earnings contribution from RAG. In the previous year, this position also included a revaluation of EUR 9.6m to the Ashta hydropower plant in Albania. EBITDA recorded by the EVN Group fell by 21.6% year-on-year to EUR 420.2m in the first half of 2021/22.
Scheduled depreciation and amortisation declined by 5.9% year-on-year to EUR 158.3m, among others due to the sale of EVN‘s 49% investment in the Walsum 10 power plant as of 30 September 2021. The effects from impairment tests – which totalled EUR 50.9m in the first half of 2021/22 (previous year: EUR 113.1m) – reflected different effects: In the second quarter of 2021/22, a change in the Group’s risk and earnings expectations for future projects based on the ongoing global distortions led to the recognition of an impairment loss to goodwill in the international project business (EUR 52.9m) and to the residual carrying amount of the two sludge-fired combined heat and power plants in Moscow (EUR 4.4m). These impairment losses were contrasted by a revaluation of EUR 6.4m to the Kavarna wind park in Bulgaria to reflect the changed regulatory conditions in combination with an increase in electricity prices. In the previous year, the takeover of an additional electricity procurement right resulted in the recognition of impairment losses totalling EUR 113.3m. In total, EBIT declined by 17.1% to EUR 211.0m.
Financial results dropped to EUR –31.3m (previous year: EUR –21.0m) owing to weaker performance of the R138 fund in the current market environment and as a result of foreign exchange developments. After the deduction of EUR 44.1m (previous year: EUR 38.7m) in income tax expense and the earnings attributable to non-controlling interests, Group net result for the period equalled EUR 127.4m. This represents a year-on-year decline of 27.6%.
In line with the goals for expansion of renewable energy as part of EVN`s strategy 2030, there are three wind power projects with a total of 67.2 MW currently in realisation. New construction of wind parks in Schildberg and repowering of existing equipment in Japons with an installed capacity of 12.6 MW each. At the wind park in Palterndorf-Dobermannsdorf (42 MW) high-efficiency 6 MW wind power plants will come into operation for the first time. Commissioning of this wind park is scheduled for the next financial year.
The increased expansion of eco-electricity and the smart metre roll-out are responsible for an increase in network investments to support the continued protection of supply security. There is a massive demand for network expansion and investments in smart grid pilot projects, in particular to accommodate the sharp rise in photovoltaic equipment in the low and medium voltage networks.
Environmental and water business
In the international project business, WTE Wassertechnik received a contract for the second section of the Cluj-Sălaj drinking water supply project in Romania in March 2022 with a contract value of approximately EUR 45m. The contract comprises construction of transport pipelines, an elevated tank and a cleaning station. In April 2022 commercial commissioning of the thermal sewage sludge treatment plant in Halle-Lochau took place which was built by the 50:50 joint venture sludge2energy. As of 31 March 2022, WTE Wassertechnik had twelve projects for wastewater, drinking water and thermal sewage sludge treatment under planning and construction in Germany, Poland, Lithuania, Romania, Bahrain and Kuwait as well as two further thermal sludge utilisation projects in progress in Germany (Hannover und Straubing) through the 50:50 joint venture with sludge2energy.
The Letter to Shareholders on the first half of 2021/22 is available under www.investor.evn.at.
25.05.2022 This Corporate News was distributed by EQS Group AG. www.eqs.com
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