EVN AG — Earnings Release 2001

May 21, 2001

News Details

Ad-hoc | 21 May 2001 08:33

Ad hoc-Service: EVN AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Development of business in the first half of 2000/01 Sales volumes and revenues Despite a weather-related fall in volumes sold, EVN managed to achieve increases in both revenues and pretax result during the first half of 2000/01. However, in view of the sizeable burdens caused by increased expenditure on energy sourcing, in particular due to the continued high gas purchasing prices, the operating result (EBIT) was marginally below that for the same period of last year. The slowdown in growth of the Austrian economy also had a restrictive effect on the companys business development. Result The rise in expenses during the period under review could not be entirely accounted for by increased sales revenues. Therefore, the operating result (EBIT) for the first six months of the 2000/01 financial year was 3.6 % down on the same figure for the previous year at ATS1,799 m (EUR 130.7 m). Conversely, the financial result was clearly up on the preceding year, mainly due to the downward development of the yen exchange rate and the related revenues derived from the valuation of the EVN yen bond as at the balance sheet date. As a result, profit before tax for the first halfyear was 5.9 % above the comparable figure of the preceding year at ATS 1,885 m (EUR 137.0 m). end of ad hoc announcement (c) DGAP 21.05.2001 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Development of business in the first half of 2000/01 Improved revenues and pretax result Continuing cost pressure Successful launch of joint EnergieAllianz products evn water, entry into the water business. EVNs 2000/01 Interim Letter to Shareholders can be downloaded from EVNs homepage at http://www.evn.at Business Development in the first half of 2000/01 Sales volumes and revenues Despite a weatherrelated fall in volumes sold, EVN managed to achieve increases in both revenues and pre-tax result during the first half of 2000/01. However, in view of the sizeable burdens caused by increased expenditure on energy sourcing, in particular due to the continued high gas purchasing prices, the operating result (EBIT) was marginally below that for the same period of last year. The slowdown in growth of the Austrian economy also had a restrictive effect on the companys business development. Electricity sales to end customers rose by a total of 2.7 %. Taking into consideration the gradual outsourcing of electricity trading to e&t, the joint EnergieAllianz subsidiary responsible for energy trading and sourcing, total electricity sales decreased by 2.8% during the first half of 2000/01. Electricity revenues fell slightly over the previous year by 1.8 %. Apart from the downturn in sales to domestic customers and the reduction in the trading volume as compared with the first half of 1999/00, the main reasons for this decline were the price cut that took effect on March 1, 2000, which was undertaken in view of impending full market liberalisation, together with a reduction in average revenues from industrial customers. Gas sales development continued to be depressed. Although as compared with the first quarter, decreases were somewhat reduced, EVN was nonetheless forced to accept a reduction of 9.1% in half-year sales, which was mostly due to the warm weather. Despite this setback, gas revenues were raised by 29.9 % during the period under review, due to the partial passing on to customers of the high gas purchase price in the form of sales price increases. The unfavourably warm temperatures also caused a 2.3% fall in heating sales volumes during the period under review, although this was clearly compensated for by the increased sales prices derived from the rise in primary energy sourcing costs. All in all, heating evenues rose by 24.5%. In total, sales revenues for the first half-year were 9.7 % above the figure for 1999/00. Expenditure As in the first quarter, positive sales developments were offset by a marked increase in primary energy sourcing costs. The predominant factor in this regard was the exceptionally high level of expenditure on gas caused by high sourcing prices. At the same time, expenditure on externally generated electricity also rose as a result of an increase in the volumes procured and, to a lesser extent, to a slight rise in price over the preceding year. All in all, expenditure on electricity purchases and primary energy was 29.6 % above the level of the preceding year. In the first half of the 2000/01 financial year, the EVN Group employed an average of 2,162 people. Despite an expansion in the scope of consolidation, the work force was again 1.9 % down on the corresponding figure for the previous year. This reduction, and lower provisions following the partial settlement of pension claims, led to a reduction in personnel expenditure of 14.8 %. Depreciation was also well down over the previous year, falling by 16.6%. This was mostly due to the extraordinary depreciation undertaken during preceding years, which was not counterbalanced by similar measures during the period under review. By contrast, other operating expenses, which mainly related to consulting and advertising, rose by 30.6 %. Result The rise in expenses during the period under review could not be entirely accounted for by increased sales revenues. Therefore, the operating result (EBIT) for the first six months of the 2000/01 financial year was 3.6 % down on the same figure for the previous year at ATS1,799 m (EUR 130.7 m). Conversely, the financial result was clearly up on the preceding year, mainly due to the downward development of the yen exchange rate and the related revenues derived from the valuation of the EVN yen bond as at the balance sheet date. As a result, profit before tax for the first half-year was 5.9 % above the comparable figure of the preceding year at ATS 1,885 m (EUR 137.0 m). ——————————————————————————– WKN: 074105; Index: ATX Listed: Amtlicher Handel in Wien; Amtlicher Handel in Frankfurt und München; Freiverkehr in Berlin, Hamburg und Stuttgart 210833 Mai 01