EVN AG — Earnings Release 2005

May 31, 2005

News Details

Corporate | 31 May 2005 08:00

EVN AG: Development of business in the first half of 2004/05

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— EVN AG: Development of business in the first half of 2004/05 (October 1 – March 31, 2005) Highlights – Initial inclusion of Bulgarian electricity distribution companies, EDC Plovdiv and EDC Stara Zagora – Operating result improved – Result from investments markedly higher – Net result up significantly as compared to the preceding year – Gas business strengthened through takeover of a majority holding in RAG Beteiligungs AG – Water and waste project business expanded 2004/05 2003/04 1st half 1st half Change Mio EUR Mio EUR in % Sales revenues 857,7 687,9 + 24,7 Operating result (EBIT) 165,0 154,1 + 7,0 Result before tax 195,8 166,7 + 17,5 Period net result 149,2 118,0 + 26,4 Improvement of earnings and the result in the first half of 2004/05 Due to the initial inclusion of the new Bulgarian subsidiaries EDC Plovdiv und EDC Stara Zagora within the scope of consolidation, EVN was able to improve both earnings and the result, in part to a considerable degree. Sales volumes in the energy sector, with the exception of the gas segment where mild weather had a dampening effect, presented a thoroughly satisfactory picture. A similar situation prevailed with regard to waste incineration, as well as project business in the water, wastewater and waste sectors. The contributions of these areas to Group turnover and results are of growing significance. Pleased with the operating result the new Speaker of the Executive Board of EVN, Dr. Burkhard Hofer said, “As a consequence of these developments, at EUR 165.0 m, the EVN Group EBIT for the first half of 2004/05 was EUR 10.8 m, or 7.0 percent, up on that of the preceding year.” In net terms, at EUR 30.8 m, the financial result was well above the EUR 12.5 m of the previous year. This was due mainly to an improvement in the result from investments, which derived primarily from the equity valuation of BEWAG, BEGAS, EconGas and ZOV. ZOV as member of WTE Group has completed the wastewater treatment plant in Zagreb. All in all, the result before tax amounted to EUR 195.8 m, which was EUR 29.1 m, or 17.5%, up on the figure of the previous year. Due to a reduction in taxes on income, despite an increase in minority interests, the net result for the period improved by 26.4% to EUR 149.2 m. Earnings per share rose by 16.2% from EUR 3.14 in the previous year to EUR 3.65. Gas business strengthened through RAG Beteiligungs AG During the period under report, EVN also strengthened its gas business segment through the taking of a majority holding in RAG Beteiligungs AG, which holds a 75% interest in Rohöl-Aufsuchungs-AG (RAG). RAG is the second largest Austrian oil and gas production company, is highly successful and profitable and possesses significant storage capacity. “The greater degree of vertical integration between the gas supply on the one hand, and the sourcing of the required volumes on the other, will lead to a better balance in EVN”s business portfolio, while simultaneously providing improved protection against high oil and natural gas prices”, emphasised Dr. Hofer. Successful international projects in the water and waste incineration areas The international activities of the EVN Group in the water and waste sectors are developing in a highly successful manner. All current WTE Group projects, including the major Moscow South-West drinking water plant and the Zagreb and Vienna wastewater treatment plants, are all running to schedule. The preparatory measures for seven new wastewater plants in Estonia and Poland have also been completed, with the result that completion has already commenced. The completion of the waste incineration plant in Moscow is proceeding as well as scheduled. The outlook with regard to other projects in Eastern Europe is also positive. Outlook On the basis of the good 2004/05 half-year results, it can be anticipated that EVN Group sales, operating result and consolidated net profit for the year will be above the level of the preceding financial year. As a consequence of positive development among subsidiaries, the result from EVN investments is also likely to exceed the comparable figure for the previous year. Please find the current Letter to Shareholders of the first half of 2004/05 under http://www.investor.evn.at. End of announcement (c)DGAP 31.05.2005 —————————————————————————— WKN: 074105; ISIN: AT0000741053; Index: ATX Listed: Amtlicher Handel in Wien; Amtlicher Markt in Frankfurt (General Standard, WKN 878279) und München; Freiverkehr in Berlin-Bremen und Stuttgart 310800 Mai 05