EVN AG / Half Year Results/Half Year Results
28.05.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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(October 1, 2008 - March 31, 2009)
>EVN continues to invest despite the economic crisis
>Positive revenue and EBIT development despite earnings decline in
Energy segment sales
>Lower income from investments in associates as the result of the price
decline for primary energy
>Group net profit on balance below the previous year's level
>Successful corporate bond issue, optimisation of financial structure
>Outlook for the current financial year confirmed
>Ratification of concession agreement for constructing three hydropower
storage plants in Albania
2008/09
HY. 1 Change
EUR m in %
Revenue 1,615.6 +18.4
EBITDA 277.3 +5.8
Results from operating activities
(EBIT) 184.0 +7.8
Group net profit 168.8 -10.0
In the period October 2008 - March 2009, the energy sector environment was
characterised by consistent temperatures compared to the previous year,
even higher import prices for gas and a strong decline in the prices for
crude oil and coal as a result of the economic crisis. The business
environment in Austria remained more favourable than in other
industrialised nations. Economic growth in South East Europe eased in the
period under review.
Against the backdrop of these conditions, EVN raised total revenue in the
1st half of the 2008/09 financial year (October 1, 2008 - March 31, 2009)
by 18.4%, or EUR 250.6m, to EUR 1,615.6m. This development is primarily
related to the revenue increase in the Energy segment of 17.8%, or EUR
227.0m, to EUR 1,503.5m. Thanks to several new projects, revenue in the
Environmental Services segment climbed 33.5%, or EUR 25.4m, to EUR 101.2m.
Despite massive price increases for electricity purchases and primary
energy expenses, as well as the higher personnel expenses, other materials
and operating expenses, results from operating activities (EBIT) were up
7.8% from the previous year, to EUR 184.0m. The lower EBIT rise in
comparison to increased revenue, which resulted in an earnings decline in
energy sales in the face of a positive development of all other business
segments, led to a decline in the EBIT margin from 12.5% to 11.4%. The
financial results decreased significantly by EUR 30.7m, to EUR 31.3m, which
can be mainly attributed to the decline in income from associates by EUR
24.4m, to EUR 69.6m.
The profit before income tax in the 1st half of 2008/09 amounted to EUR
215.2m, down 7.4% from the preceding year. Income tax rose 43.9%, or EUR
10.4m, to EUR 34.1m, which is related to the lower share of tax-free income
from investments in associates. In turn, this resulted in a decrease in the
Group net profit of 10.0%, or EUR 18.6m, to EUR 168.8m.
Since the last balance sheet date on September 30, 2008, the balance sheet
total of the EVN Group fell by 1.9%, or EUR 124.9m, to EUR 6,511.4m. Equity
dropped 11.8%, or EUR 380.0m, to EUR 2,828.4m, which is due to the lower
profit before income tax in the 1st half-year 2009/09, the change in the
market valuation of EVN's shareholding in Verbundgesellschaft without
recognition to profit or loss, and the distribution of the dividend
totaling EUR 60.3m to shareholders of EVN AG for the 2007/08 financial
year. Accordingly, the equity ratio was 43.4% as of March 31, 2009.
In the 2nd quarter 2008/09, EVN issued four corporate bonds to the amount
of EUR 327.0m. The proceeds from the corporate bonds will be used to
finance planned investment projects as well as for the redemption of loans
and borrowings which are falling due. Gearing totaled 54.0% as at the end
of the 2nd quarter 2008/09 (March 31, 2009), based on the increase in net
debt, which climbed to EUR 1,526.2m, up from EUR 1,131.3m as at September
20, 2008.
Focus on renewable energies in South East Europe
Further expansion steps were taken in the 1st half-year 2008/09 to promote
the increased use of renewable energy sources in South East Europe.
The concession agreement for the construction of three peak load storage
power plants on the Devoll River in Albania, which EVN will build together
with its Norwegian joint venture partner Statkraft, was signed in December
2008. On February 23, 2009, the concession agreement was ratified by the
Albanian Parliament.
evn naturkraft commenced construction on a wind park project featuring 25
wind turbines and a total capacity of 50 MW in October 2008 in Kavarna, in
northeastern Bulgaria, together with its German partner Enertrag AG. Total
investments amount to approximately EUR 95m, with completion expected at
the end of 2009.
Growth spurt in the telecommunications sector
In December 2008, an agreement was signed for the acquisition of the
Burgenland-based cable network operator B.net Burgenland Telekom GmbH as
well as Dataservice GmbH by the EVN subsidiary kabelsignal AG. The closing
of the transaction took place on February 25, 2009.
Project completion and new contracts in the Environmental Services segment
During the period under review, four combined cycle heat and power plants
were put into operation on the premises of the wastewater purification
facility completed by WTE at the Kurjanovo site in Moscow. In November
2008, WTE was awarded a contract to construct a sludge treatment plant in
the Lithuanian capital city of Vilnius, with investments totaling EUR
45.0m. At the end of December 2008, WTE acquired its second project on the
island of Cyprus, winning a tender to plan, construct, finance and operate
a seawater desalination plant near Limassol. WTE will operate the facility
for 20 years following a construction period of two years.
Outlook
The business development of EVN in the 2008/09 financial year will be
negatively impacted by financial and economic crisis as well as potential
political and regulatory risks. Despite a significant improvement in the
operational performance of EVN Macedonia AD, EVN is being continually
confronted with discriminatory measures being imposed by the Republic of
Macedonia and state-owned companies, which target our involvement in the
country. EVN is using all the legal means at its disposal to protect its
investments in Macedonia, and has already initiated international
arbitration proceedings.
In addition to a weaker development in the Energy segment, the associated
companies operating in the field of primary energy have been strongly
affected by the falling energy prices, and will thus generate considerably
lower earnings contributions. We also anticipate a negative value
development in respect to our financial assets. Even if the economic
recession has corresponding effects on the Group net profit, from today's
point of view EVN will likely be able to maintain the results from
operating activities achieved in the previous year, aside from any
potential negative consequences arising as the result of political and
regulatory risks.
The complete Letter to Shareholders HY. 1 2008/09 is available at
www.investor.evn.at.
EVN AG
Head of Corporate Communications
EVN Group
Stefan Zach
EVN Platz
A-2344 Maria Enzersdorf
phone.: +43 2236 200-122 94
fax: +43 2236 200-822 94
mobile: +43 676 810 32 294
stefan.zach@evn.at
www.evn.at
DGAP 28.05.2009
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Language: English
Issuer: EVN AG
EVN Platz
2344 Maria Enzersdorf
Österreich
Phone: +43-2236-200-12294
Fax: +43-2236-200-82294
E-mail: info@evn.at
Internet: www.evn.at
ISIN: AT0000741053
WKN: 074105
Indices: ATX
Listed: Foreign Exchange(s) Wien
End of News DGAP News-Service
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DGAP-News: EVN AG: Development of business in the first half-year of 2008/09
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