EVN AG — Earnings Release 2005

Feb 28, 2005

News Details

Corporate | 28 February 2005 08:15

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

Corporate-news announcement processed and sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Development of business in the first quarter of 2004/05 (October 1 – December 31, 2004) – Increased sales revenues mainly from water and waste incineration as well as electricity and heating. – Operating result higher, despite high energy sourcing prices and network tariff reductions. – Marked improvement in the result from investments. – Period net result clearly up on the preceding year. – Promising perspectives in the new water and waste incineration business areas. – Integration of both Bulgarian electricity supply companies commences following the closing in January 2005. 2004/05 Change Q. 1 % EUR m Sales revenues 358.4 +9.3 Operating result (EBIT) 73.5 +3.1 Result before tax 85.6 +3.2 Period net result 62.3 +3.3 Result Q1 2004/05 In the first quarter of 2004/05, EVN Group sales revenues amounted to EUR 358.4 m, which was EUR 30.6 m, or 9.3%, higher than the figure for the preceding year. This notable increase can be traced to growth in the energy, water and waste business segments. As a consequence of these developments, the EVN Group operating result (EBIT) for the first quarter of 2004/05 went up by EUR 2.2 m, or 3.1%, to EUR 73.5 m. A fall in the operating result from the energy business sector was more than compensated for by increased contributions to results from the water and waste incineration business segments. By contrast, at EUR 12.1 m, the financial result was marginally lower than that of the preceding year, falling by EUR 0.2 m, or 1.8%. The result from the investments consolidated at equity more than doubled whereas the interest and other financial result was down due to increased interest expenses. All in all, the result before tax amounted to EUR 85.6 m, which was EUR 2.0 m, or 2.4%, up on the figure of the previous year. On this basis, the net result for the period improved by EUR 2.0 m, or 3.3%, to EUR 62.3 m. Conversely, earnings per share (EPS) fell from EUR 1.60 to EUR 1.52 as a consequence of the issue of new shares during a capital increase in the past year. WTE captures new projects in Eastern Europe Great success can be shown in international business in the water and wastewater sectors. All the Group’s projects, which include the major orders for the Moscow South-West drinking water plant, as well as for wastewater treatment plants in Zagreb and Vienna, are progressing on schedule. Parallel to these activities, WTE has also obrained new orders in Poland and Estonia. Waste incineration EVN’s international activities in the waste treatment sector also continued to develop in a positive manner. The complete preparations for the rebuilding of the waste incineration plant in Moscow, for which EVN received an order last year for the planning, completion and operational management, proceeded as planned. The plant is designed to handle 330,000 t of waste per year and should go into operation in the summer of 2007. This project utilises the extensive know-how obtained from the building and operation of the Group waste incineration plant adjacent to the Dürnrohr power station, which has been in highly successful full-scale operation since January 2004. Outlook As a result of the high levels of seasonality in the energy and water business sectors, the positive development of the EVN Group in the first quarter cannot simply be extrapolated to the entire 2004/05 financial year. However, due to the enlargement of WTE and AVN project business, as opposed to previous financial years, seasonal factors are gradually losing their influence. In the current year, revenues and contributions to results from these areas should increase further. The acquisition of the two Bulgarian electricity supply companies, EDC Plovdiv and EDC Stara Zagora, which were purchased with effect from January 1, 2005, and will be fully consolidated in the EVN financial statements Q2 2004/05, will lead to a considerable rise in all the items contained in the Group income statement and balance sheet. The acquisition of these companies constitutes a milestone for EVN, as via a line network of around 56,000 km, they supply some 6,600 GWh of power annually to a total of around 1.5 million people, who represent roughly a third of all Bulgarian electricity consumers. EVN’s Letter to Shareholders for the 1st quarter 2004/05 can be downloaded from http://www.investor.evn.at For further information contact: Georg Waldner (Investor Relations Officer) Tel. +43 2236 200 12718 Michael Längle (Chief Financial Officer) Tel. +43 2236 200 12324 end of message, (c)DGAP 28.02.2005 —————————————————————————— 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 280815 Feb 05