EQS-News: EVN AG / Key word(s): Annual Results
EVN AG: Business development in the 2022/23 financial year
14.12.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Highlights
• Group net result of EUR 529.7m; influenced primarily by earnings
growth in South East Europe, a higher dividend from Verbund AG and
positive earnings contributions from renewable electricity generation
• Negative earnings contribution of roughly EUR –240m from the Austrian
energy supply company for electricity and natural gas
• Dividend proposal: EUR 0.52 per share plus a special dividend of EUR
0.62 per share
• Increase in renewable generation to 77.0% following the commissioning
of new wind power and photovoltaic plants with over 70 MW of combined
capacity
• EVN is Austria‘s largest charging station operator for e-mobility with
roughly 2,500 charging points
• Investments increased to historical high of approximately EUR 700m,
including roughly 88% classified as ecologically sustainable under the
EU Taxonomy Regulation
Energy sector environment
The weather in EVN’s three core markets during the 2022/23 financial year
was characterised by milder temperatures. The heating degree total – which
defines the temperature-related demand for energy – in Austria was
slightly lower and in Bulgaria and North Macedonia substantially lower
than the long-term average. The massive fluctuations and distortions in
the previous financial year were followed by a decline in primary energy
and energy prices during 2022/23, especially during the summer months.
However, a contrasting trend appeared towards the end of the reporting
year – with the exception of CO₂ emission certificate prices. Their price
was subject to fluctuation, but rose by 8% on average over the prior year
value. This development also had an impact on the market prices for
electricity, which declined significantly during the reporting year but
remained at a relatively high level compared with previous years.
EBITDA, EBIT and Group net result above previous year
Revenue recorded by the EVN Group declined by 7.2% year-on-year to EUR
3,768.7m in 2022/23. This development resulted primarily from a decline in
revenue in South East Europe which, in turn, was caused by lower network
and energy sales volumes and by the downward trend in wholesale prices. In
the international project business, the largely completed wastewater
treatment plant in Kuwait led to lower revenue. This decline was moderated
by price and volume effects from renewable electricity generation,
positive valuation effects from hedges, higher revenue from natural gas
trading, increased selling prices at EVN Wärme and higher network tariffs.
Declining wholesale prices in South East Europe led to a reduction of
26.5% in the cost of electricity purchases from third parties and primary
energy expenses to EUR 1,675.5m in 2022/23. These costs include positive
upfront effects from the procurement of energy to cover network losses,
which will be offset in the following year in accordance with the
regulation methodology. Contrasting factors included, in particular,
higher costs for network losses and upstream network costs at Netz
Niederösterreich as well as increased energy procurement costs of EVN
Wärme. Higher electricity production volumes in the Verbund Innkraftwerke
also increased the cost of electricity purchases from third parties.
The cost of materials and services declined by 6.3% to EUR 662.7m in line
with the development of revenue in the international project business and
offset inflation-based increases in the other Group companies. Personnel
expenses were 12.6% higher year-on-year at EUR 419.2m due to adjustments
required by collective bargaining agreements. The EVN Group had an average
workforce of 7,255 in 2022/23 (previous year: 7,135 employees). Other
operating expenses rose by 27.7% to EUR 202.2m. This amount includes the
levy on the surplus revenue from electricity production which is based on
the Federal Act on the Energy Crisis Contribution for Electricity which
was implemented in Austria during December 2022.
The share of results from equity accounted investees amounted to EUR
–67.6m (previous year: EUR 98.9m). This decline – which was already
reported during the financial year – is attributable to the energy supply
company EVN KG, where the development of earnings was significantly
impaired by several factors. They included higher procurement costs for
energy that can only be passed on to customers with a delay, the lower
valuation of hedges as of 30 September 2023 and additions to provisions
for impending losses from contractual supply obligations. EVN KG reported
a loss of EUR 240.3m for the reporting year. In contrast, higher earnings
contributions were received from RAG, the Verbund Innkraftwerke and
Burgenland Energie. A further positive effect was a revaluation to the
Ashta hydropower plant.
Based on these developments, EBITDA recorded by the EVN Group rose by
15.1% year-on-year to EUR 869.0m in 2022/23. Scheduled depreciation and
amortisation rose by 5.8% to EUR 336.5m based on investments. A
year-on-year comparison of the effects of impairment testing is
influenced, above all, by the sharp decline of impairment losses totalling
EUR 114.8m in 2021/22. Impairment losses in 2022/23 amounted to EUR 7.1m
and were related chiefly to district heating equipment in Lower Austria.
Revaluations of EUR 3.2m were recorded to plants operated by EVN Wärme and
EVN Wasser.
These developments led to an increase in EBIT to EUR 528.5m (previous
year: EUR 331.6m). Financial results improved to EUR 127.6m in 2022/23
(previous year: EUR –30.5m) and were influenced, above all, by an increase
in the dividend from Verbund AG to EUR 3.60 per share for the 2022
financial year (previous year: EUR 1.05 per share). In total, the earnings
contribution from the Verbund investment equalled EUR 158.0m in 2022/23.
In the previous year, financial results were negatively influenced by
foreign exchange effects and the value adjustment to a loan.
The result before income tax totalled EUR 656.2m in 2022/23 (previous
year: EUR 301.2m). After the deduction of income tax expense – which
increased to EUR 74.0m (previous year: EUR 64.0m) – and the earnings
attributable to non-controlling interests, Group net result for the
2022/23 financial year equalled EUR 529.7m (previous year: EUR 209.6m).
Solid balance sheet structure, increased 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. The volume of investments increased to EUR 694.1m in 2022/23 and are
planned to range from EUR 700m to EUR 900m annually in the years up to
2030 with three-fourths of this total in Lower Austria. This represents a
substantial contribution by EVN to the energy future.
The share of capital expenditure (CapEx) classified as ecologically
sustainable under the EU Taxonomy Regulation rose to 87.8% in 2022/23
(previous year: 84.7%).
Energy. Water. Life. – Developments in the energy and environmental
services business
EVN Climate Initiative
With the EVN Climate Initiative and the formulation of science-based
reduction targets for greenhouse gas emissions, EVN has anchored climate
protection in all its activities as part of the Strategy 2030. These goals
and the related measures underscore EVN’s efforts to make a measurable
contribution to contain global warming. Massive investments in the
expansion of renewable generation capacity highlight EVN’s central role as
an enabler of the CO(2)-free energy future. Significant progress was made
in 2022/23 with the repowering of the wind park in Japons, the completion
of the wind park in Palterndorf-Dobermannsdorf and the commissioning of
three large-scale photovoltaic plants in Grafenwörth, Trumau und Theiss.
Two additional photovoltaic projects in Lower Austria and North Macedonia
are also scheduled for commissioning in the coming weeks. Based on the
existing project pipeline, EVN’s generation capacity from wind power and
photovoltaics will increase to over 770 MW, respectively 300 MWp by 2030.
Energy business
Electricity generation from renewable energies rose by 2.1% to 2,295 GWh
in 2022/23. Wind flows were substantially below average, but were offset
by a year-on-year increase in electricity production from hydropower. The
share of renewable generation equalled 77.0% (previous year: 66.8%).
Thermal generation declined by 38.6% to 686 GWh, chiefly due to the
reduced use of the Theiss power plant by the Austrian transmission network
operator for network stabilisation.
Environmental and water business
Improving the security and quality of drinking water supplies in Lower
Austria is a focal point of EVN’s investments. Construction started in
2022/23 on the second section of the 60 km transport pipeline from Krems
to Zwettl to secure long-term water supplies for the Waldviertel and
Weinviertel regions. The sixth natural filter plant, which is located in
Bisamberg (investment volume: EUR 7.0m), was also commissioned during the
reporting year, and construction started on a further plant in Obersulz.
In the international project business, WTE Wassertechnik was working on
the planning and construction of twelve projects in Germany, Poland, North
Macedonia, Romania, Bahrain and Kuwait as of 30 September 2023. As
announced in an ad-hoc release on 18 September 2023, a structured bidder
process was started for WTE Wassertechnik.
Outlook on the 2023/24 financial year
The Executive Board will make a recommendation to the 95^th Annual General
Meeting which calls for the distribution of an ordinary dividend of EUR
0.52 plus a special dividend of EUR 0.62 per share, in total EUR 1.14 per
share, for the 2022/23 financial year.
For the 2023/24 financial year, EVN expects Group net result within a
range of roughly EUR 420m to EUR 460m – under the assumption of a stable
regulatory and energy policy environment. EVN’s future dividend policy has
also been revised to reflect the investment and growth perspectives up to
2030 and beyond. 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 mid term, a payout
ratio equalling 40% of Group net result, adjusted for extraordinary
effects, is targeted.
For the complete Full Report on the 2022/23 financial year, see
(1) www.investor.evn.at.
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14.12.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
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: 1796387
End of News EQS News Service
1796387 14.12.2023 CET/CEST
References