EVN AG — Earnings Release 2005

Aug 31, 2005

News Details

Corporate | 31 August 2005 08:31

EVN AG delivers strong results in the first three quarters of 2004/05

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— 2004/05 2003/04 Q. 1-3 Q. 1-3 Change EURm EURm in % Sales revenues 1,205.5 931.2 +29.5 Operating result 186.4 161.8 +15.2 Result before tax 233.3 171.9 +35.7 Period net period 184.9 139.4 +32.7 Highlights – Progressive integration of both Bulgarian electricity distribution companies delivers initial positive contributions – Sales revenues from CEE countries rose from 5.5% to 21% – Operating result up by 15.2% – Sharp rise in the financial result due to positive contribution of investments – Period net result significantly higher than in the preceding year – Gas business strengthened through the acquisition of a majority holding in RAG Beteiligungs AG – Marked investments in renewable energy in Lower Austria Further improvements in sales and results even in the face of more difficult energy market conditions EVN’s positive development continued in the third quarter of the 2004/05 business year with a marked increase in both sales and results. On the basis of improved revenues in all areas, Group turnover in the first nine months with 1,205.5 EURm was 29.5% higher than the figure for the preceding year. The main reason for this sizeable rise was the initial inclusion of the Bulgarian electricity distribution companies ERP Plovdiv and ERP Stara Zagora, as well as the high level of electricity generation in EVN’s power stations. The EVN Group operating result was up by a sizeable 15.2% but because of increased gas procurement costs there was a decline in the gas segment. The result before tax was 35.7% higher than the figure for the preceding year and the period net result also improved by 32.7%. Not least, the consolidation of the Bulgarian subsidiaries acquired at the beginning of the year provided clearly tangible impulses. Moreover, the environmental sector with waste incineration and project business in the water, wastewater and waste areas also made an increasingly positive contribution to sales and results. Pleased with the good result Dr. Burkhard Hofer, Speaker of the Executive Board of EVN said, “This extremely solid performance demonstrated that due to the expansion of its business portfolio and geographic focus on Central and Eastern Europe, EVN is in a position to achieve further improvements in sales and results even in the face of partially more difficult energy market conditions”. Result from investments leads to markedly higher financial result The EVN Group financial result in the first three quarters of 2004/05 amounted to EUR 46.8 m and was thus a sizeable EUR 36.8 m above the figure for the preceding year. The primary reason for this increase was the satisfactory corporate development of virtually all the companies included in the consolidated financial statements at equity, which resulted in a rise in contributions over the previous year totalling EUR 30.7 m. The main players in this regard were BEWAG, BEGAS, EconGas, Rohöl-Aufsuchungs-AG and ZOV, a joint venture established for the completion of the central wastewater treatment plant in Zagreb. The sizeable rise in dividends from Verbundgesellschaft also had a positive effect. All in all, the result before tax amounted to EUR 233.3 m, which was EUR 61.4 m, or 35.7%, higher than the figure for the preceding year. The net result for the period also rose, increasing by 32.7% to EUR 184.9 m. Due to the capital increase completed during last year, earnings per share were up by 22.0% and EUR 4.52, after EUR 3.71 in the preceding year. Investments in the use of renewable energy from wind and biomass Against this general market background, EVN stepped up its investments in environment-friendly power generation from renewable energy sources in Austria. With the signing in July of a contract for the take-over of an already officially approved wind farm project in Lower Austria, which is already in the construction phase, we have obtained an additional 20 windmills with an electricity generation capacity of 40 MW. “Now, with a total of 40 new windmills, an overall capacity of 110 MW has been attained, which from the beginning of 2006, will facilitate the supply of eco-electricity to some 70,000 households in Lower Austria. If two biomass- fired, combined heat and power plants, which are also currently under construction, are taken into account, EVN investments in the further expansion of the use of renewable energy sources in Lower Austria in 2005/2006 will amount to approximately EUR 130 m,” explains Dr. Hofer EVN’s plans. Outlook On the basis of the solid figures in the first nine months of 2004/05, sales revenues, the operating result and the EVN Group consolidated net profit for the entire financial year should exceed those of the preceding year. As a consequence of the positive developments among EVN’s investments, the financial result will also clearly surpass that of last year. Therefore, growth rates similiar to those of the first nine months can be expected for the full-year result. Please find the current Letter to Shareholders of the first three quarters of 2004/05 under http://www.investor.evn.at . End of announcement (c)DGAP 31.08.2005 —————————————————————————— WKN: 074105; ISIN: AT0000741053; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin-Bremen, Frankfurt, München und Stuttgart 310815 Aug 05