EQS-News: EVN AG: Business development in the 2023/24 financial year

EQS-News: EVN AG / Key word(s): Annual Results
   EVN AG: Business development in the 2023/24 financial year

   17.12.2024 / 07:30 CET/CEST
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   Highlights

     • Decline in Group net result by 11.0% to EUR 471.7m
     • Negative earnings contribution of roughly EUR 162m from the Austrian
       electricity and natural gas supply company
     • Increase in share of renewable generation to 84.4% (previous year:
       77.0%)
     • Dynamic expansion of wind power and photovoltaic capacity to 477 MW
       and 93 MWp
     • Start of construction on a biomass combined heat and power plant in
       St. Pölten
     • Austria‘s largest charging station operator for e-mobility with 3,000
       charging points
     • Record investments of EUR 753.0m for the energy future (thereof 88.8%
       taxonomy-aligned)
     • Dividend proposal: EUR 0.90 per share

    

   Energy sector environment

   The weather in EVN’s three core markets was again characterised by milder
   temperatures during the 2023/24 financial year. The heating degree total –
   which defines the temperature-related demand for energy – was clearly
   below the previous year as well as the long-term average in Austria,
   Bulgaria and North Macedonia. Both water and wind flows were very
   positive. Primary energy and energy prices continued to decline. Also, the
   prices of CO[2] emission certificates were lower year-on-year as a result
   of general economic conditions. These developments also had an impact on
   the market prices for electricity, which again declined significantly
   during the reporting year. Due to the steadily increasing share of
   renewable generation capacity in the energy system, price developments
   during the year are now also significantly influenced by seasonal effects.

    

   EBITDA, EBIT and Group net result below previous year

   Revenue recorded by the EVN Group declined by 13.6% to EUR 3,256.6m in
   2023/24. This development resulted primarily from the downward trend in
   wholesale prices for electricity and natural gas in all three EVN core
   markets. The price-related revenue decline in renewable production was
   offset in part by an increase in generation volumes. Other factors
   included the reduced use of the Theiss power plant for network
   stabilisation and a weather-related decrease in heat sales volumes as well
   as lower network tariffs in Bulgaria in accordance with the regulation
   methodology. Revenue in the international project business was also lower
   following the completion of the wastewater treatment plant in Kuwait.

   In line with the development of revenue, declining wholesale prices for
   electricity and natural gas also led to a reduction in the cost of
   electricity purchases from third parties and primary energy expenses in
   South East Europe and in electricity and heat generation. The cost of
   electricity purchases from third parties and primary energy expenses fell
   by a total of 18.7% to EUR 1,362.8m in 2023/24. The cost of materials and
   services declined by 14.6% to EUR 565.8m corresponding to the development
   of revenue in the international project business.

   Personnel expenses rose by 13.1% year-on-year to EUR 473.9m. The primary
   reasons were adjustments required by collective bargaining agreements and
   an increase in the average workforce. Other operating expenses were 5.3%
   higher year-on year at EUR 212.8m. They include an impairment loss of EUR
   22.5m which was recognised to a receivable in the international project
   business during the first quarter of 2023/24 following a court of
   arbitration judgment. This position also includes the energy crisis
   contribution levy for electricity generation.

   The share of results from equity accounted investees with operational
   nature was again influenced by a negative contribution from the energy
   supply company EVN KG, which amounted to EUR –162.3m (previous year: EUR
   –240.3m). Two valuation effects were the main reasons for this
   development: the impairment of EUR 39.7m to natural gas inventories
   previously purchased as a strategic reserve and the addition to
   provisions. Challenging framework conditions – above all intensified
   competition combined with customers’ energy savings measures and supplies
   from private photovoltaic equipment – also reduced electricity and natural
   gas sales volumes and made planning for sales volumes more difficult. An
   additional positive effect was the further revaluation of EUR 16.8m to the
   Ashta hydropower plant (previous year: EUR 11.1m). The share of results
   from equity accounted investees amounted to EUR 30.8m (previous year: EUR
   –67.6m). Based on these developments, EBITDA recorded by EVN declined by
   8.0% year-on-year to EUR 799.4m.

   The higher pace of investments led to an increase of 3.5% in scheduled
   depreciation and amortisation to EUR 348.3m. Impairment losses of EUR
   –24.9m were recorded in 2023/24 (previous year: EUR –3.9m). Therefore EBIT
   for the EVN Group amounted to EUR 426.2m in 2023/24 (previous year: EUR
   528.5m).

   Financial results totalled EUR 135.3m (previous year: EUR 127.6m) and
   resulted chiefly from a higher dividend from Verbund AG for the 2023
   financial year. In total, Group net result for the 2023/24 financial year
   was 11.0% lower year-on year at EUR 471.7m.

    

   Solid balance sheet structure, rise in investment programme and EU
   Taxonomy Regulation

   The capital structure is stable and solid and provides a sound foundation
   for the realisation of the investments planned as part of the EVN Strategy
   2030. Net debt totalled EUR 1,129.3m as of 30 September 2024 (30 September
   2023: EUR 1,364.3m).

   Investments reached an all-time high of EUR 753.0m in 2023/24 and are
   scheduled to rise to roughly EUR 900m annually in the years up to 2030.
   The main drivers for this increase include the demands on the network
   business to create the necessary basis for the integration of the steadily
   growing feed-in volumes of renewable energy and the expansion of wind
   power and photovoltaic capacity. EVN is also continuing to enlarge its
   natural heat offering through the consolidation of district heating
   networks and the expansion of generation capacity. In 2023/24,
   construction started on the fifth biomass combined heat and power plant
   which will be located in St. Pölten, with commissioning planned for the
   end of 2025. It will be able to supply roughly 30,000 households with
   environmentally friendly heat and 15,000 households with green
   electricity. These measures demonstrate EVN’s measurable contribution to
   contain global warming and to support the transition to a CO[2]-free
   energy future.

   The installation of an additional 500 charging points during 2023/24
   increased the number of EVN charging points to 3,000 and make the company
   Austria’s largest charging station operator. Further investments of EUR
   100m are planned by 2030 and will service e-autos and e-buses as well as
   e-lorries and ships. The comprehensive, cross-industry electrification of
   traffic will play an important role in reaching the climate goals set by
   Lower Austria.

    

   Energy. Water. Life. – Developments in the energy and environmental
   services business

   EVN Climate Initiative

   As an integral part of the Strategy 2030, the EVN Climate Initiative
   defines precise decarbonisation goals. It bundles measures for the
   expansion of renewable generation capacity and sets targets for the
   reduction of greenhouse gas emissions. The existing goals were revised in
   2023/24 and adapted to meet the 1.5°C goal of the Paris Climate Agreement.
   A transition plan aligned with the Corporate Sustainability Reporting
   Directive (CSRD) was also prepared. These revised goals will be submitted
   to the Science Based Target Initiative (SBTi) in 2024/25 for external
   scientific review and validation. The main lever to reduce emissions lies
   in the expansion of renewable generation capacity. Substantial progress
   was again made in this area during 2023/24, and EVN is well underway to
   meeting its expansion goals for 2030 (wind power 770 MW, photovoltaics 300
   MWp).

   Energy business

   EVN’s renewable electricity generation rose by 22.0% year-on-year to 2,799
   GWh. Water as well as wind flows were higher than in the previous year
   whereas hydrological conditions even exceeded the long-term average.
   Electricity generation from wind power also benefitted from the
   construction of new wind and photovoltaic parks and the repowering of
   existing wind parks. In contrast, thermal generation fell by 24.4% to 519
   GWh due to the reduced use of the Theiss power plant for network
   stabilisation during the reporting year.

   Environmental and water business

   Improving the security and quality of drinking water supplies in Lower
   Austria is also a focal point of EVN’s investments. The current major
   project in this context is the construction of a 60 km cross-regional
   transport pipeline from Krems to Zwettl. The second section is largely
   complete, and construction on the third and final section started in
   summer 2024. The entire transport pipeline is scheduled for commissioning
   in 2025/26. Also, a further natural filter plant was commissioned during
   the reporting year, and preparations started for construction of another
   plant of this type in Reisenberg in the Lower Austrian Industrieviertel.

   In the international project business, WTE Wassertechnik was working on
   the planning and construction of eight projects in Germany, Romania, North
   Macedonia, Bahrain and Kuwait as of 30 September 2024. A decision by the
   Executive Board of EVN in September 2023 confirmed the Group’s focus on
   the core energy business. On 10th December 2024, EVN announced ad-hoc that
   EVN AG and STRABAG SE have reached an agreement on key terms of a
   potential sale of all shares in WTE Wassertechnik. Signing of the
   transaction documents is envisaged for the end of February 2025.

    

   Dividend and outlook on the 2024/25 financial year

   The Executive Board will make a recommendation to the 96th Annual General
   Meeting which calls for the distribution of an ordinary dividend of EUR
   0.90 per share for the financial year 2023/24. For the 2024/25 financial
   year, EVN expects Group net result within a range of EUR 400m to EUR 440m
   – under the assumption of a stable regulatory and energy policy
   environment. The dividend policy was confirmed and is unchanged. As of the
   2024/25 financial year, the dividend will equal at least EUR 0.82 per
   share in the future, whereby EVN wants its shareholders to appropriately
   participate in any additional earnings growth. In the medium term, a
   payout ratio equalling 40% of Group net result, adjusted for extraordinary
   effects, is targeted.

    

   For the complete Full Report on the 2023/24 financial year, see
   [1]www.investor.evn.at.

    

   ══════════════════════════════════════════════════════════════════════════

   17.12.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   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:      Vienna Stock Exchange (Official Market)
   EQS News ID: 2052137


    
   End of News EQS News Service


   2052137  17.12.2024 CET/CEST

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=043aaf8932ccae1801a55e69dc65ec2c&application_id=2052137&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print