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EVN AG Earnings Release 2022
742_ip_2022-02-25_8d44e164-8416-4518-a47e-77a517b7c36c.pdf
Earnings Release
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EVN conference call Q. 1 2021/22 results
25 February 2022
Highlights Q. 1 2021/22
- Market prices for natural gas, CO2 emission certificates and electricity reach historic highs
- − Different effects of market distortions on the diversified business areas
- − Higher procurement costs passed on to Austrian household customers as of January/February 2022 (electricity/natural gas)
- Higher network tariffs for household customers as of 1 January 2022: electricity +8.4%, natural gas +4.7%
- Increased attractiveness for ESG investors
- − Exit from hard coal-fired electricity generation completed (September 2021)
- − New CO2 reduction goals agreed with Science Based Targets initiative
- − New expansion targets for wind (+350 MW) and PV (+300 MW) until 2030
- Increase in Capex programme up to EUR 500m p.a.
- − Thereof ¾ in Lower Austria in networks, renewables and water supply
Key financials Q. 1 2021/22
| Q. 1 2021/22 | +/– | |
|---|---|---|
| EURm | % | |
| Revenue | 900.9 | 49.1 |
| EBITDA | 201.9 | -39.5 |
| Depreciation and amortisation | -78.8 | 7.1 |
| Effects from impairment tests | 6.4 | - |
| EBIT | 129.5 | -4.7 |
| Financial results | -16.4 | - |
| Group net result | 81.5 | -12.7 |
| Net cash flow from | ||
|---|---|---|
| operating activities | 0.8 | -98.2 |
| Investments1) | 110.1 | 26.8 |
| Net debt | 905.9 | -13.9 |
Increase in revenue
- − High electricity prices as drivers (renewable generation; energy sales in South East Europe)
- − Price and volume effects in networks business
- − Higher demand for gas-fired generation to support network stability
Decline in EBITDA, EBIT and Group net result
- − High procurement costs in South East Europe
- − Lower earnings contribution from EVN KG
- − Takeover of electricity procurement right led to positive one-off effect in the previous year
2) Changes reported in percentage points
Solid balance sheet structure
- Strong balance sheet as basis for increased investment programme in the coming years (annually up to EUR 500m)
- Committed, undrawn credit facilities in the amount of EUR 552m as of 31.12.2021
Generation
| Q. 1 2021/22 | +/– | |
|---|---|---|
| Electricity generation volumes | GWh | % |
| Total | 771 | -11.4 |
| Renewable energy sources | 437 | -5.9 |
| Thermal energy sources | 334 | -17.7 |
| Q. 1 2021/22 | +/– | |
| Financial performance | EURm | % |
| Revenue | 80.0 | 0.5 |
| EBITDA | 50.3 | -11.5 |
| EBIT | 46.3 | 29.7 |
Electricity generation below previous year
- − Higher wind flows only partly offset decline in water flows
- − Divestment of 49%-stake in Walsum 10 power plant as of 30 September 2021
- − Higher demand for gas-fired generation to support network stability
Decline in EBITDA, improvement in EBIT
- − High electricity prices support revenue
- − Takeover of electricity procurement right led to positive one-off effect in the previous year
- − Revaluation of wind park Kavarna (Bulgaria)
Energy
| Sales volumes to | Q. 1 2021/22 | +/– |
|---|---|---|
| end customers | GWh | % |
| Electricity1) | 2,295 | 1.6 |
| Natural gas1) | 1,796 | 0.3 |
| Heat | 767 | 6.3 |
| Q. 1 2021/22 | +/– | |
|---|---|---|
| Financial performance | EURm | % |
| Revenue | 178.9 | 90.4 |
| EBITDA | 35.0 | -34.7 |
| EBIT | 29.8 | -38.4 |
Increase in energy sales volumes
- − Colder temperatures
- − Normalisation of demand after the coronarelated decline in the previous year
EBITDA and EBIT below previous year
- − Revenue up from marketing of renewable generation and high electricity prices
- − Takeover of electricity procurement right led to positive one-off effect in the previous year
- − Lower earnings contribution from EVN KG
1) Mainly sales volumes from EVN KG and EnergieAllianz in Austria and Germany; the results from these two sales companies are included in EBITDA under the share of results from equity accounted investees with operational nature.
Networks
| Network distribution | Q. 1 2021/22 | +/– |
|---|---|---|
| volumes | GWh | % |
| Electricity | 2,381 | 2.4 |
| Natural gas1) | 5,643 | 9.3 |
| Q. 1 2021/22 | +/– | |
| Financial performance | EURm | % |
| Revenue | 156.6 | 7.0 |
| EBITDA | 78.9 | 11.1 |
| EBIT | 42.9 | 16.3 |
Increase in network sales volumes
- − Lower temperature
- − Normalisation of demand after the coronarelated decline in the previous year
- − Increase in natural gas network sales volumes due to more frequent use of thermal power plants for network stability
Revenue, EBITDA and EBIT above previous year
− Positive volume and price effects (higher network tariffs as of 1 January 2021)
South East Europe
| Key energy business | Q. 1 2021/22 | +/– |
|---|---|---|
| indicators | GWh | % |
| Electricity generation volumes | 111 | 12.5 |
| Network distribution volumes | 3,858 | 6.0 |
| Electricity sales volumes | 3,263 | 11.9 |
| Heat sales volumes | 75 | 21.2 |
| Q. 1 2021/22 | +/– | |
|---|---|---|
| Financial performance | EURm | % |
| Revenue | 455.3 | 85.7 |
| EBITDA | 7.0 | -79.2 |
| EBIT | -12.0 | - |
Increase in energy sales and network sales volumes
− Colder temperature
EBITDA and EBIT below previous year
- − Increase in energy procurement costs
- − Extraordinary government and regulatory measures as compensation for additional costs
Environment
| Q. 1 2021/22 | +/– | |
|---|---|---|
| Financial performance | EURm | % |
| Revenue | 91.4 | -3.1 |
| EBITDA | 17.1 | -4.4 |
| EBIT | 8.9 | 6.8 |
| Financial results | -7.9 | - |
| Result before income tax | 1.1 | -86.5 |
Improvement in EBIT, decline in result before income tax
- − Decline in revenue and operating expenses due to reduced construction activity in international project business
- − Positive one-off effect at evn wasser in the previous year
- − Negative foreign exchange developments
Cash flows
| Q. 1 2021/22 | +/– | |
|---|---|---|
| EURm | in % | |
| Gross cash flow | 204.4 | -49.9 |
| Net cash flow from operating activities | 0.8 | -98.2 |
| Net cash flow from investing activities | -421.1 | - |
| Net cash flow from financing activities | 237.9 | - |
| Net change in cash and cash | ||
| equivalents | -182.5 | - |
Gross cash flow
− Takeover of electricity procurement right led to positive one-off effect in the previous year
CF from operating activities
− Negative development of working capital due to high energy prices
CF from investing activities
− Increase in investments in property, plant and equipment as well as cash funds
CF from financing activities
− Three new short-term bank loans
- Group net result for 2021/22 is expected to range from approximately EUR 200m to EUR 240m
- − Stronger or longer distortions on the energy markets could have a negative impact on expected earnings
Contact details
- Stefan Szyszkowitz, CEO
- IR contact partners:
- − Gerald Reidinger
- − Matthias Neumüller
- − Karin Krammer
- − Doris Lohwasser (maternity leave)
- IR contact details
- − E-mail: [email protected]
- − Phone: +43 2236 200-12128
- − Phone: +43 2236 200-12867
- Information on the internet
- − www.evn.at
- − www.investor.evn.at
- − www.responsibility.evn.at
- Headquarters of EVN AG
- − EVN Platz 2344 Maria Enzersdorf
Disclaimer
Certain statements made in this presentation may constitute "Forward-Looking Statements" within the meaning of the U.S. federal securities law. Forwardlooking information is subject to various known and unknown risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts.
The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN's management based on factors currently known by it.
No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved.
For additional information regarding risks, investors are referred to EVN's latest Annual report.