EQS-News: EVN AG: Business development in the first quarter of 2024/25

EQS-News: EVN AG / Key word(s): Quarter Results
   EVN AG: Business development in the first quarter of 2024/25

   26.02.2025 / 07:30 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   Highlights

     • Business development at normal level, as expected
     • Decline in revenue from marketing of EVN‘s own electricity generation
     • Investment-related increase in depreciation, amortisation and
       financing costs reduce earnings contribution from the network business
     • Ambitious investment programme with roughly EUR 900m annually in
       implementation
     • Commissioning of a wind park in Paasdorf (22.2 MW)
     • Progress as planned on the construction of the biomass combined heat
       and power plant in St. Pölten
     • Start of construction on the eighth natural filter plant
     • Increased investments in e-charging infrastructure: 600 new e-charging
       points by 2028 in cooperation with the XXXLutz corporate group

    

   Energy sector environment

   The temperature-related energy demand in the first quarter of 2024/25
   nearly reflected the long-term average in Austria and Bulgaria, while
   North Macedonia experienced once again very mild weather. Water flows were
   stable at the high prior year level during the reporting period, but wind
   flows were lower. The first quarter of 2024/25 brought a gradual increase
   in the wholesale prices for electricity which, however, were still
   substantially lower than the unusually high level of the past two years.
   Electricity sales volumes were negatively affected by the ongoing strong
   competition and steadily increasing supplies from customers’ own
   photovoltaic systems.

    

   Revenue, EBITDA, EBIT and Group net result below previous year’s level

   Revenue recorded by the EVN Group declined slightly by 1.3% to EUR 804.1m
   in the first quarter of 2024/25. This development resulted primarily from
   a decline in revenues from the marketing of EVN’s own renewable generation
   and from negative effects from the valuation of hedges. The decline was
   moderated by positive volume and price effects from the distribution
   network companies in all three EVN core markets. The supply companies in
   Bulgaria and North Macedonia also recorded a volume- and price-based
   increase in revenue.

   Other operating income rose due to insurance compensation for damages
   which resulted from the floodings in Lower Austria during September 2024.
   The cost of energy purchases from third parties and primary energy
   expenses increased by 6.8% to EUR 418m, due above all to higher
   procurement costs in the regulated energy supply business in South East
   Europe. This increase was contrasted by lower procurement costs at EVN
   Wärme and for natural gas due to lower gas volumes traded.

   The cost of materials and services rose by 31.7% to EUR 81.0m, chiefly due
   to repair costs for flood damages which were largely covered by insurance.

   Personnel expenses rose year-on-year to EUR 115.4m. The main reasons
   included adjustments required by collective bargaining agreements and an
   increase in the workforce to 7,695 (previous year: 7,452 employees).

   Other operating expenses fell by 42.4% to EUR 41.4m. In the previous year,
   this position was influenced by an impairment loss of EUR 22.5m recognised
   to outstanding receivables from the project in Budva, Republic of
   Montenegro, and by the energy crisis contribution for electricity.

   The share of results from equity accounted investees with operational
   nature totalled EUR 47.1m and was therefore slightly higher than the
   previous year (EUR 46.2m). Higher earnings contributions from RAG and
   EnergieAllianz were contrasted by a price-related decline of results at
   Verbund Innkraftwerke.

   Based on these developments, EBITDA recorded by the EVN Group declined by
   6.0% year-on-year to EUR 253.1m.

   The higher volume of investments led to an increase of 7.0% in
   depreciation and amortisation to EUR 86.9m. In total, EBIT fell by 11.4%
   year-on-year to EUR 166.2m. Financial results totalled EUR –16.9m
   (previous year: EUR –11.3m).

   The result before income tax fell by 15.4% to EUR 149.2m. After the
   deduction of EUR 27.7m in income tax expense (previous year: EUR 35.2m)
   and the earnings attributable to non-controlling interests, Group net
   result for the period equalled EUR 115.5m. That represents a year-on-year
   decline of 19.7%. The earnings from discontinued operations (IFRS 5 of
   disclosure the available-for-sale parts of the international project
   business), which are included in Group net result, amount to EUR 5.1m
   (restated prior year value: EUR 12.3m). The decline compared with the
   restated prior year value reflects the progress on the included
   large-scale international projects.

    

   Solid balance sheet structure and ambitious investment programme

   The capital structure of EVN 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 1,300.9m as of 31 December 2024
   (30 September 2024: EUR 1,129.3m).

   In the coming years up to 2030, EVN is going to implement an ambitious
   investment programme with an annual volume of approximately EUR 900m;
   roughly three-fourths of this volume will be directed to Lower Austria.
   These investments will focus on the network infrastructure, renewable
   generation, e-charging infrastructure and drinking water supplies. New
   business areas, e.g. the continuous expansion of the e-charging
   infrastructure or the planning and construction of large battery storage
   facilities will be specifically developed as the basis for future growth
   opportunities in a renewable energy future.

   Over 3,200 charging points make EVN the largest operator of charging
   stations in Austria. A cooperation agreement was signed with the XXXLutz
   corporate group in February 2025, which will drive the expansion of the
   e-charging infrastructure during the next four years. 600 new e-charging
   points will be installed at XXXLutz locations by 2028, and the first 12
   locations are scheduled for completion by the end of 2025.

    

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

   Energy business

   Electricity generation from renewable energy reflected the previous year
   with 656 GWh in the first quarter of 2024/25 (31 December 2023: 662 GWh).
   Water flows in Austria were at the above-average, high previous year
   level. The commissioning of additional wind power capacity offset wind
   flows that fell below the long-term average. Thermal generation rose to
   167 GWh due to the increased use of the Theiss power plant for network
   stabilisation in the reporting period.

   The expansion of renewable generation is proceeding rapidly. In the first
   quarter of 2024/25, the newly built wind park in Paasdorf (22.2 MW) was
   commissioned. That raised the installed wind power capacity to roughly 500
   MW as of 31 December 2024, whereby the expansion target up to 2030 is set
   at 770 MW. The repowering project for the Prellenkirchen III wind park,
   which is currently in progress, will increase output from the current
   level of 14.4 MW to 47.6 MW for this wind park. In the photovoltaic
   business, two projects in Austria – Peisching (10 MWp) and
   Markgrafneusiedl (5 MWp) – as well as a project in Bulgaria (2.5 MWp) are
   soon scheduled for commissioning in the near term.

    

   Environmental and water business

   Drinking water supplies in Lower Austria and the improvement of this
   infrastructure to protect supply security remain a central focal point of
   EVN’s investments. Construction on the third and final section of the 60
   km cross-regional transport pipeline from Krems to Zwettl continued as
   planned during the reporting period. Completion of the entire pipeline is
   scheduled for autumn 2025. In Reisenberg, a town in Lower Austria, work
   started on the construction of a natural filter plant; commissioning is
   planned for summer 2026.

   As reported in an ad-hoc press release on 10 December 2024, EVN and
   STRABAG have reached an agreement on the key points of a possible sale of
   material parts of the international project business and are now
   negotiating binding transaction documents.

    

   Confirmation of the outlook for the 2024/25 financial year

   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.

    

   The Letter to Shareholders on the first quarter of 2024/25 is available
   under www.investor.evn.at.

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   26.02.2025 CET/CEST This Corporate News was distributed by EQS Group.
   www.eqs.com

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   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: 2091233


    
   End of News EQS News Service


   2091233  26.02.2025 CET/CEST

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