EVN AG — Earnings Release 2001

Aug 31, 2001

News Details

Ad-hoc | 31 August 2001 08:39

EVN AG english

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– – Increase in revenues and results despite unfavourable conditions for the energy industry – Capital increase for NOESIWAG take-over concluded, entry into the water market completed – Construction work on waste incineration plant commences 2000/01 +/ Quarters 13 VolumesElectricity GWh4,964*) +4.6 % soldGas m. m3 1,096 5.0 % Heating GWh653 +5.8 % ATS mEUR m Sales revenues 11,370826.3 + 9.5 % Operating result (EBIT)2,048148.9 + 9.2 % Result before tax 2,153156.5 + 4.7 % *)Excludes electricity trading and sales to other electricity companies Profit and2000/011999/002000/011999/00+/ loss account (IAS)Q. 13Q. 13Q. 13Q. 13 ATS m EUR m% Sales revenues11,37010,386826.3754.79.5 Changes in inventory, own work capitalised and other operating income43228331.420.652.5 Electricity purchases and primary energy5,8484,752425.0345.323.1 Cost of materials and services80664558.646.825.0 Personnel expenses1,7521,940127.3141.09.7 Depreciation9061,08265.878.616.3 Other operating expenses44237432.127.218.3 Operating result (EBIT)2,0481,877148.9136.49.2 Financial result1051797.613.041.4 Result before tax2,1532,056156.5149.44.7 The Letter to Shareholders can be downloaded from EVNs homepage at www.evn.at. end of ad-hoc-announcement (c)DGAP 31.08.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The first three quarters of the 2000/01 EVN financial year were characterised by the following general factors: – Temperatures that were clearly up on those of the comparable period of the preceding year and also above the long-term average. – The slow-down in economic growth, which had been evident for some time, continued. – Gas purchasing prices remained at an extremely high level. – The cuts in electricity prices and the increases in the gas sales price began to take full effect. Electricity sales volumes in the first three quarters of 2000/01 were 8.2 % down on the figure for the preceding year. Apart from sales declines due to the warm temperatures, this decline was primarily due to the outsourcing of electricity trading to e&t, the joint EnergieAllianz subsidiary with responsibility in this area. Nonetheless, EVN electricity volumes sold to end customers rose by 4.6 %. Although sales to domestic customers fell by 0.3 % as a consequence of the temperatures, sales to industrial customers went up by 11.1 % due to access to new customers outside the EVN supply area. In accordance with this downward sales trend, electricity revenues fell by 3.9 % over the previous year. Apart from the reduced sales and trading volume, this development was the result of the price cut that took effect on March 1, 2000 in view of impending full market liberalisation, together with a reduction in average revenues from industrial customers. Gas sales volumes for the first nine months of the financial year of 2000/01 were 5.0 % down on those of the same period of the preceding year. The main reason for the 2.8 % drop in local network sales volumes was the above- average temperature level, which could not be compensated for by the acquisition of new customers. In view of the relatively large volume of one-off deliveries in the previous year, sales to industrial customers were 7.2 % down. By contrast, gas revenues were 32.7 % up on the figure for the preceding year as a result of the three-phase price increases, by means of which, EVN passed on a large part of the dramatic rise in purchasing prices to the customers. In the heating business, the unfavourably warm temperatures during the period under review were more than counterbalanced by an increase in the number of appliances. Heating sales volumes rose by a total of 5.8 %. Due to price adjustments, which were initiated in order to also pass on the rise in energy purchasing prices in this business area, heating revenues in the first three quarters were 33.1 % up on those of the previous year. Other operating revenues were also markedly higher, demonstrating a rise of 17.4 %. This rise reflects an increase in the scope of consolidation, higher telecommunications revenues and revenues relating to chain customers. In total, sales revenues for the first three quarters were 9.5 % above the figure for 1999/00. Primary energy sourcing costs remained well above the level of the preceding year. The predominant factor in this regard was the above-average gas price. At the same time, despite a drop in quantity, expenditure on externally generated electricity also increased, which can also be traced to higher purchasing prices. All in all, expenditure on energy purchases and primary energy was 23.1 % above the level of the preceding year. The cost of materials and services went up by 25.0 % over the previous year. Apart from the enlargement in the scope of consolidation, this increase was primarily the result of expenses derived from the support of chain customers. In the first three quarters of the 2000/01 financial year, the EVN Group employed an average of 2,153 people. Despite expansion to the scope of consolidation, the work force was again cut and was 1.7 % down on the corresponding figure for the previous year. This fall, and lower provisions following the partial settlement of pension claims, provided the basis for a reduction in personnel expenditure of 9.7 % in the period under review. Depreciation was 16.3 % down over the previous year, due mostly to the extraordinary depreciation undertaken in previous years, which was not followed by similar measures during the period under review. By contrast, other operating expenses, which mainly related to consulting and advertising, rose by 18.3%. The operating result for the first three quarters of the 2000/01 financial year was 9.2 % up on the same figure for the previous year at ATS 2,048 m (EUR 148.9 m). EVN has thus succeeded in clearly compensating for increased expenditure on energy purchasing, materials, operating and other expenses by means of increased revenues and a reduction in depreciation and personnel costs. Despite a marked improvement in the value of foreign currency bonds on the balance sheet date, the financial result shows a fall of 41.4 %. However, the comparable result for the preceding year was unusually high due to revenues from the sale of max.mobil stake. Consequently, although general conditions were unfavourable for the energy industry, the profit before tax for the first three quarters was 4.7 % above the comparable figure of the preceding year at ATS 2,153 m (EUR 156.5 m). CEO Rudolf Gruber, As far as forecasts for the 2000/01 financial year are concerned, without doubt, development during the first three quarters of the year constitutes a solid foundation for a satisfactory overall result. However, conclusions concerning the year as a whole based on the results from partial periods are only valid to a limited extent. In particular, due to the seasonality in the energy industry, the summer quarter is generally the weakest with regard to earnings. Moreover, the unfavourable temperature trend and the continuation of high energy prices represent further burdens. Nonetheless, due to continued cost savings and the acquisition of new customers, EVN should be able to match its result of the previous year. The probity of EVNs long-term diversification strategy has been clearly confirmed by successful entry into both the water and waste treatment business areas. In addition to its traditional activities in the energy sector, EVN has extended its portfolio with attractive areas closely related to the core energy business. EVN today offers its customers a comprehensive range of public services. As a result, even in a scenario of increasing competition, EVN will retain a solid market position with interesting growth perspectives. ——————————————————————————– WKN: 074105; Index: ATX Listed: Amtlicher Handel in Wien; Amtlicher Handel in Frankfurt und München; Freiverkehr in Berlin, Hamburg und Stuttgart 310839 Aug 01