EQS News: EVN AG / Key word(s): Half-year results EVN AG: Business development in the first half of the 2023/24 financial year 05/29/2024 / 07:30 CET/CEST The issuer/publisher is responsible for the content of the announcement. ════════════════════════════════════════ ══════════ ════════════════════════ Highlights • Robust operational business development thanks to Strategy 2030 and diversified business model • Continued high volatility on the energy markets • Very good wind and water supply for electricity generation • Doubling of installed photovoltaic capacities to around 80 MWp • Two wind farms under construction: Sigleß-Pöttelsdorf (8.4 MW; repowering) and Paasdorf (22.2 MW) • Drinking water supply: Completion of the natural filter system in Obersulz • Investments of around 259 million . euros in the first half of 2023/24 to transform the energy system • Conclusion of a 500 million euro green credit line as a strategic liquidity reserve • External ratings confirmed: Moody’s (A1, outlook stable); Scope Rating (A+, outlook stable) Energy industry environment The first half of 2023/24 was again characterized by very mild temperatures. For example, March 2024 was by far the warmest March in the history of measurements in Austria. The total heating degree – which defines the temperature-related energy requirement – was well below the long-term average in all three of EVN’s core markets and also below the level of the comparable period in the previous year. The water supply was very positive in the reporting period. The corresponding production coefficients in Austria, North Macedonia and Germany significantly exceeded the long-term average level. The wind supply in Austria was also above the long-term average and significantly above the comparable level of the previous year. In Bulgaria, however, it remained below the previous year’s level. The prices for primary energy and CO(2) emission certificates as well as the market prices for base and peak load electricity continued to decline due to the weak economy. The development of electricity prices and the prices for CO(2) emission certificates are now also strongly influenced by the feed-in from renewable energies. Sales, EBITDA, EBIT and consolidated earnings below previous year’s level EVN’s sales revenue fell by 17.7% to EUR 1,805.1 million in the first half of 2023/24. This was due in particular to the declining wholesale prices for electricity and natural gas in all three core markets as well as the resulting valuation effects from hedging transactions. Other factors for the decline in sales were the lower calls from the Tisza power plant to stabilize the network, volume and price effects on natural gas network sales and lower network tariffs in Bulgaria, which offset the overcompensation of additional costs from covering network losses in the previous year in accordance with the regulatory methodology. Sales revenue also fell in the international project business due to the extensive completion of the sewage treatment plant in Kuwait. The decline in sales was mitigated by increased renewable production and higher network fees for electricity in Lower Austria. In line with the sales and revenue development, expenses for external electricity purchases and energy sources also fell by 24.1% to EUR 777.3 million compared to the previous year. The main drivers of this development were the declining wholesale prices in Southeastern Europe and lower primary energy costs for electricity and heat generation. Third-party services and other material costs fell – in line with the sales development in the international project business – by 20.8% to EUR 258.9 million. However, personnel expenses increased by 16.8% to EUR 225.7 million in the reporting period. The main factors in this development were adjustments to collective agreements and an increase in the number of employees to 7,496 employees (previous year: 7,185 employees). Other operating expenses increased by 12.6% to EUR 113.5 million. Already in the first quarter of 2023/24, a receivable from the Budva sewage treatment plant project in Montenegro in the amount of 22.5 million euros had to be written off after the Geneva arbitration court had accepted the payments received from WTE in the past totaling 41.9 million . Euro, but had not awarded any further claims. Also included is the energy crisis contribution electricity, which, however, was lower year-on-year than in the previous year due to market price developments and the change in the investment tax deduction for the calendar year 2024. The share of earnings of the companies included at equity with an operational nature continues to be burdened by the energy sales company EVN KG with a negative contribution of –128.5 million euros (previous year: –223.1 million euros). Although the negative reporting date valuations of hedging transactions were reduced compared to the same period, there was also a consumption of provisions from contractual delivery obligations. However, falling gas tariffs as a result of intense competition made it necessary to devalue the natural gas reserves that had been procured in the past as a strategic reserve to ensure security of supply. Furthermore, challenging general conditions – in particular more intense competition as well as customer-side savings measures and increased self-sufficiency from photovoltaic systems – further dampened electricity and natural gas sales and made it more difficult to plan sales volumes. In addition to EVN KG, the equity-accounted companies Burgenland Energie and Verbund Innkrafte also recorded an improvement in earnings compared to the same period, while RAG suffered a decline – albeit compared to an above-average level in the previous year. In total, the profit share of the companies included at equity with an operational character amounted to -42.9 million euros (previous year: -143.3 million euros). Based on these developments, EVN’s EBITDA in the first half of 2023/24 was 2.9% below the previous year’s level at EUR 453.0 million. Due to investments, scheduled depreciation increased by 5.3% to EUR 171.3 million. On balance, EBIT was 7.3% below the previous year’s level at EUR 281.6 million. EVN’s financial result in the first half of 2023/24 amounted to -25.1 million euros (previous year: -27.5 million euros). The improvement achieved here, despite higher interest expenses, is due to the better performance of the R138 fund. In addition, the financial result in the previous year was more heavily impacted by foreign currency exchange rate developments. Overall, this resulted in a decline in earnings before income taxes of 7.2% to EUR 256.5 million. After taking into account the income tax expense of EUR 33.5 million (previous year: EUR 35.2 million) and the share of earnings attributable to non-controlling interests, the consolidated result was EUR 199.3 million. This corresponds to a decrease of 8.3% compared to the previous year. Solid balance sheet structure EVN has a solid and stable capital structure, which forms a good basis for implementing the comprehensive investment program of EUR 700 to 900 million annually. The focus continues to be on the areas of network infrastructure, renewable generation and drinking water supply; three quarters of which are in Lower Austria. Net debt as of March 31, 2024 was EUR 1,357.6 million (September 30, 2023: EUR 1,364.3 million). In April and May 2024, both of EVN’s external ratings were confirmed by the rating agencies: Moody’s (A1, outlook stable) and Scope Ratings (A+, outlook stable). At the end of April, EVN’s syndicated credit line of EUR 400 million was refinanced early and replaced by a new syndicated credit facility of EUR 500 million. It is a so-called sustainability-linked credit line, the conditions of which also depend on sustainability criteria. Energy. Water. Life. – Developments in the energy and environmental business Energy business EVN’s electricity generation in the first half of 2023/24 was 1,791 GWh, 13.8% above the previous year’s figure. Above-average wind and water availability as well as capacity expansions led to a 31.0% increase in renewable generation to 1,485 GWh. The lower use of the Tisza power plant by the Austrian transmission system operator to stabilize the grid led to a decline in thermal generation by 30.4% to 306 GWh. Overall, the share of renewable generation improved to 82.9% (previous year: 72.0%). In the reporting period, in addition to the commissioning of two wind farms in November 2023, a large-scale photovoltaic system in Dürnrohr (23.5 MWp) was also commissioned. Two further wind farms are in the construction phase: Sigleß-Pöttelsdorf (8.4 MW, repowering) and Paasdorf (22.2 MW). Construction preparations for further wind power and photovoltaic projects have also begun. Environmental and water business In the area of drinking water supply, the focus of investment continues to be on the planning and construction of transport and connection lines to further improve and ensure security of supply. In the construction of a 60 km long transport pipeline from Krems to Zwettl to secure the long-term water supply in the Waldviertel and Weinviertel, the second construction phase and preparatory work for the third phase are being implemented as planned. The natural filter plant in Obersulz was completed in the reporting period, and the construction of another plant in Reisenberg in the industrial district is in preparation. In the international project business, WTE Wassertechnik was working on the planning and construction of nine projects in the areas of wastewater disposal, drinking water treatment and thermal sewage sludge utilization in Germany, Poland, Romania, North Macedonia, Bahrain and Kuwait as of March 31, 2024. The sewage treatment plant in Kuwait was completed in the reporting period and a successful test run took place. Around two thirds of the construction of the wastewater infrastructure has been completed. Confirmation of the outlook and dividend policy for the 2023/24 financial year. Assuming a stable regulatory and energy policy environment, EVN expects consolidated earnings in the range of EUR 420 to 460 million for the current 2023/24 financial year. The outlook includes the Verbund dividend of EUR 182 million received by EVN in May 2024 and therefore only in the third quarter of the 2023/24 financial year. The future dividend distribution should be at least 0.82 euros per share. EVN intends to allow its shareholders to participate in additional increases in earnings to an appropriate extent. In the medium term, the aim is to achieve a payout ratio of 40% of the consolidated result adjusted for extraordinary effects. You can find the letter to shareholders about the first half of the 2023/24 financial year at (1) www.investor.evn.at. ════════════════════════════════════════ ══════════ ════════════════════════ 05/29/2024 CET/CEST Publication of a corporate news/financial announcement, transmitted by EQS Group AG. www.eqs.com
════════════════════════════════════════ ══════════ ════════════════════════ Language: German Company: EVN AG EVN Platz 2344 Maria Enzersdorf Austria Telephone: +43-2236-200-12294 Email : info@evn.at
Internet: www.evn.at
ISIN: AT0000741053 WKN: 074105 Indices: ATX Exchanges: Vienna Stock Exchange (official trading) EQS News ID: 1912853 End of message EQS News Service 1912853 May 29, 2024 CET/CEST References Visible links 1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=043aaf8932ccae1801a55e69dc65ec2c&application_id=1912853&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news