EVN AG — Earnings Release 2010

Feb 25, 2010

News Details

Corporate | 25 February 2010 08:00

EVN AG: Development of business in the first quarter of 2009/10

EVN AG / Quarter Results/Quarter Results

25.02.2010 08:00

Dissemination of a Corporate News, transmitted by
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The issuer / publisher is solely responsible for the content of this announcement.

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(October 1 - December 31, 2009)

Positive development of business despite of difficult economic conditions
Sales development in the energy business shaped by cold weather
Start-up of the district heating transmission pipeline to Sankt Pölten
Higher reliability of supply in the Lower Austrian electricity network
Concession agreement for natural gas distribution and natural gas supply
in Split, Croatia
EVN wins tender to construct two wastewater treatment plants on Cyprus
Positive outlook for the 2009/10 financial year

                             2009/10 
                                 Q.1      Change
                               EUR m        in %

Revenue 769.2 +4.5
EBITDA 157.2 +17.7
EBIT 95.1 +8.3
Group net profit 74.2 +35.3

The energy sector environment in the first quarter of 2009/10 (October 1 -
December 31, 2009) was characterised by lower temperatures in Austria and
Macedonia and higher temperatures in Bulgaria. Despite of the partial
economic recovery in the second half of 2009 the primary energy and
electricity prices as well as the costs of CO2 emission certificates
declined significantly compared to the prior-year quarter.

Considerable EBIT improvement and significant improvement of group net
profit
Despite the ongoing unfavourable influencing factors negatively impacting
the economy and the energy industry, the 2009/10 financial year began well:
In the first quarter 2009/10, EVN's total revenue rose 4.5%, to EUR 769.2m.
In the energy business, the comparatively cold winter led to greater energy
demand for electricity, gas and heat. The Environmental Services segment
also generated higher revenue.

Despite increases in electricity, gas and heating sales volumes in Austria
and South-eastern Europe, the item 'Electricity purchases and primary
energy expenses' only rose slightly, which is related to the declining
wholesale prices for electricity and primary energy. The items 'Cost of
materials and services' and 'Personnel expenses' remained stable. Despite
of the increase of depreciation and amortisation primarily as a consequence
of an impairment loss for the wind park in Kavarna due to the delayed
project completion and despite of the higher other operating expenses, EBIT
climbed 8.3% to EUR 95.1m.

There was a turnaround in the financial results, which improved from -EUR
13.9m to EUR 3.6m in the first quarter of 2009/10. Income from investments
in associates included at equity remained almost constant, interest income
and other financial results, which was negatively affected in the previous
year by the crisis on global financial markets, improved considerably.
Accordingly, the profit before income tax totalled EUR 98.7m, a rise of
33.5% from the previous year's level. Hence, Group net profit notedly
amounted to EUR 74.2m, an increase of 35.3%.

The gross cash value in the first quarter 2009/10 climbed 35.7% above the
comparable period of the previous year, to EUR 146.4m. Since the last
balance sheet date on September 30, 2009, the balance sheet total of EVN
has fallen slightly by 1.0%, to EUR 6,625.5m. Equity decreased by 1.8% to
EUR 3,070.3m. Accordingly, the equity ratio amounted to 46.3% at the
quarterly balance sheet date of December 31, 2009. Taking account of the
net debt of EUR 1,468.2m, the gearing was 47.8%.

Milestones in the reliability and security of the energy supply in Lower
Austria
Several large projects in the Lower Austrian region supplied by EVN were
concluded in the first quarter of 2009/10. In October 2009, the district
heating transmission pipeline from Dürnrohr to Sankt Pölten with a length
of 31 kilometres was put into operation, entailing total investments of EUR
35.0m. Accordingly, starting in the 2009/10 heating season, EVN supplies
200 GWh of district heat, and covers two-thirds of the entire district
heating requirements of the Lower Austrian provincial capital. In order to
further improve the reliability and security of the energy supply in Lower
Austria and to more effectively connect the Theiß power plant to the high
voltage network, a 380 kV transmission line between Etzersdorf and Theiß
also came on stream in October 2009. The transfer of wind energy was also
made possible during the reporting period by the completion of the new 18
km long 110 kV transmission line from Eibesbrunn to Gänserndorf.

New environmental services projects
In October 2009, EVN was awarded a contract to plan and build two
wastewater treatment plants in Famagusta and Morphou, Cyprus. The project,
financed by the European Commission and scheduled for completion within a
period of 24 months, involves a turn-key facility entailing total
investments of EUR 11.4m and a capacity of around 44,000population
equivalents. Furthermore, as part of a consortium with a local construction
company, EVN was contracted to build and then operate a wastewater
purification plant in North Nicosia for a period of ten years, with a daily
capacity of about 30,000 m³. In December 2009, EVN was awarded a contract
to construct a waste treatment plant in Moscow. The final capacity of the
new facility will depend on the environmental permit, which is still
outstanding but is expected to be granted in the near future.

Outlook
After the first quarter of the new financial year, we anticipate increased
revenue and results from operating activities for 2009/10 as a whole,
despite difficult economic conditions. The financial results will likely be
above the previous year's level, despite the continuing low earnings
contributions from our investments operating in the field of primary
energy. From today's perspective, thus Group net profit can also surpass
the prior-year level.

The complete Letter to Shareholders Q. 1 2009/10 is available at
www.investor.evn.at.

EVN AG
Head of Corporate Communications
EVN Group

Stefan Zach
EVN Platz
A-2344 Maria Enzersdorf
Tel.: +432236 200-122 94
Fax: +432236 200-822 94
Mobil: +43 676 810 32 294
stefan.zach@evn.at
www.evn.at

25.02.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: EVN AG
EVN Platz
2344 Maria Enzersdorf
Österreich
Phone: +43-2236-200-12294
Fax: +43-2236-200-82294
E-mail: info@evn.at
Internet: www.evn.at
ISIN: AT0000741053
WKN: 074105
Indices: ATX
Listed: Foreign Exchange(s) Wien

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