EQS-News: EVN AG / Key word(s): Half Year Results
EVN AG: Business development in the first half of 2024/25
26.05.2025 / 07:30 CET/CEST
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Highlights
• Solid business development due to diversified business model
• Temperature-related increase in energy demand, but unfavourable
renewable production conditions and lower selling prices
• Ambition level for climate protection strengthened by externally
validated 1.5°C goal
• Milestones reached for renewable expansion: 500 MW wind power and 100
MWp photovoltaic capacity
• Drinking water supplies: Progress as planned on the construction of
the Waldviertel pipeline from Krems to Zwettl and on the natural
filter plant in Reisenberg, Lower Austria
• External credit ratings confirmed: Moody’s: (A1, outlook stable);
Scope Ratings: (A+, outlook stable)
Energy sector environment
The first half of the 2024/25 financial year was influenced by
substantially colder weather in year-on-year comparison. The heating
degree total – which defines the temperature-related demand for energy –
in Austria and Bulgaria was near the long-term average and distinctly
higher than the previous year. In North Macedonia it was also slightly
higher than the previous year, but again clearly below the average.
Electricity generation from wind and water energy was below the long-term
average in EVN’s core markets during the reporting period. They were
substantially lower than the above-average previous year in all markets,
with the exception of wind flows in Bulgaria.
The primary energy prices for natural gas again trended notably upward
during the reporting period, chiefly due to the low temperatures and
geopolitical factors. Driven by the higher gas prices and unfavourable
generation conditions for renewable energies, the market prices for
electricity also increased significantly during the first half of 2024/25.
The price of CO₂ emission certificates remained relatively stable. The
feed-in of renewable electricity has become a major influencing factor for
the development of these market prices.
Revenue, EBITDA, EBIT and Group net result above previous year
Revenue recorded by the EVN Group rose by 6.6% to EUR 1,731.1m in the
first half of 2024/25. The increase was supported by positive volume and
price effects from the distribution network companies in all three EVN
core markets and from the supply companies in Bulgaria and North
Macedonia. The cooler temperatures in the winter half year were also
responsible for an increase in revenue at EVN Wärme. These developments
were contrasted by a price- and volume-related decline in revenue from the
marketing of renewable generation and natural gas trading as well as
negative effects from the valuation of hedges.
The cost of energy purchases from third parties and primary energy
expenses increased by 18.1% to EUR 918.3m, in particular due to higher
procurement costs for the energy supply business in South East Europe.
This increase was offset in part by lower procurement costs and reduced
quantities of natural gas. The costs of materials and services rose by
21.1% to EUR 152.4m, chiefly due to repair costs for flood damages which
were largely covered by insurance. This also led to an increase in other
operating income. Personnel expenses were higher year-on-year but other
operating expenses declined as they were influenced by a write-off of
receivables in the previous year.
The share of results from equity accounted investees with operational
nature improved substantially from
EUR –46.4m in the first half of the previous year to EUR 75.8m. The energy
supply company EVN KG substantially reduced the previous year’s negative
earnings contribution. RAG reported an improvement, while Verbund
Innkraftwerke recorded a generation-related decline. Based on these
developments, EBITDA recorded by the EVN Group improved by 20.1%
year-on-year to EUR 512.8m.
The higher volume of investments led to an increase of 6.5% in scheduled
depreciation and amortisation to EUR 174.8m. EBIT rose by 27.7% over the
previous year to EUR 335.4m in the first half of 2024/25.
Financial results totalled EUR –29.4m (previous year: EUR –22.3m). The
decline resulted primarily from a foreign exchange effect related to the
deconsolidation of the two sludge-fired combined heat and power plants in
Moscow following the closing of the sale on 31 October 2024. Additionally,
the volatile capital market climate was reflected in weaker performance by
the R138 fund.
The result before income tax rose by 27.3% to EUR 306.0m. After the
deduction of income tax expense and the earnings attributable to
non-controlling interests, Group net result for the period equalled EUR
250.6m. That represents a year-on-year increase of 25.7%. The earnings
from discontinued operations (reporting under IFRS 5 of the
available-for-sale parts of the international project business) which are
included in Group net result amount to EUR 13.8m (restated prior year
value: EUR 11.9m).
Solid balance sheet structure, ambitious investment program and climate
protection
EVN has a solid and stable capital structure which provides a sound
foundation for the realisation of the extensive investment programme in
accordance with the Strategy 2030 of approximately 900m annually. These
investments will focus on the network infrastructure, renewable
generation, e-charging infrastructure as well as drinking water supplies;
three-fourths of them in Lower Austria.
Net debt totalled EUR 1,295.0m as of 31 March 2025 (30 September 2024: EUR
1.129.3m). In April and May 2025 both external credit ratings of EVN were
confirmed by the rating agencies Moody’s (A1, outlook stable) and Scope
Ratings (A+, outlook stable).
In 2021, EVN underscored its existing commitment for climate protection
with concrete goals for the reduction of its greenhouse gas emissions.
This step made EVN’s greenhouse gas balance an important, integral part of
the corporate strategy. The current definition of a 1.5°C goal in line
with the Paris Climate Agreement represents a further significant increase
in EVN’s ambitious level for climate protection. The 1.5°C goal was also
scientifically evaluated, agreed with and validated in mid-April 2025 by
the Science Based Targets Initiative (SBTi). Based on EVN’s greenhouse gas
emissions in the 2021/22 financial year, the current targets call for a
reduction of roughly 70% in the emissions covered by the goals coordinated
with SBTi by the 2030/31 financial year. The major drivers for the
attainment of these goals include, above all, the following: the continued
strong expansion of our renewable generation capacity (especially for wind
power and photovoltaics), the expansion of the district heating network to
supply additional customers with natural heat, and the reduction of
natural gas sales volumes to end customers through the conversion to
alternative heating systems like heat pumps or natural heat. This
represents a measurable contribution by EVN to containing climate warming
and to the attainment of the Paris climate goals.
Energy. Water. Life. – Developments in the energy and environmental
services business
Energy business
EVN’s electricity generation was 10.2% lower year-on-year at 1,609 GWh in
the first half of 2024/25. Capacity expansion was unable to offset the
unfavourable wind and water flows which led, in total, to a decline of
18.4% in renewable generation to 1,212 GWh. The increase in thermal
generation to 397 GWh (previous year: 306 GWh) is attributable to the
increased use of the Theiss power plant for network stabilisation by the
Austrian transmission network operator. The share of renewable generation
equalled 75.3% (previous year: 82.9%).
An important milestone in the expansion of renewable generation capacity
was reached in the reporting period: The commissioning of the wind park in
in Paasdorf (22.2 MW) increased installed wind power capacity to roughly
500 MW. In addition, the completion and successful commissioning of the
photovoltaic parks in Peisching (10 MWp) and Karnobat in Bulgaria (2.5
MWp) increased photovoltaic capacity to over 100 MWp. Plans call for the
continuous expansion of our renewable generation portfolio in the coming
years, and further wind power and photovoltaic projects are currently
under development.
Environmental and water business
Drinking water supplies in Lower Austria and the improvement of the
related infrastructure to protect supply security remain a central focus
of investments by EVN. The construction of the third and final section of
the 60 km cross-regional transport pipeline from Krems to Zwettl is
proceeding as planned, and the entire pipeline is scheduled for completion
in autumn 2025. The construction of a natural filter plant in Reisenberg,
a town in Lower Austria’s Industrieviertel, is also proceeding as planned,
and commissioning is expected in 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 EVN Group’s international project business.
Negotiations over the transaction contracts are currently in progress.
Confirmation of the outlook and dividend policy for the 2024/25 financial
year
EVN expects Group net result of EUR 400 to EUR 440m for the current
2024/25 financial year based on the assumption of a stable regulatory and
energy policy environment. The dividend shall equal at least EUR 0.82 per
share in the future, whereby EVN wants its shareholders to appropriately
participate in any additional earnings growth. A payout ratio equalling
40% of Group net result, adjusted for extraordinary effects, is targeted
for the mid-term.
The Letter to Shareholders on the first half of 2024/25 is available under
www.investor.evn.at.
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26.05.2025 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: 2144814
End of News EQS News Service
2144814 26.05.2025 CET/CEST
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