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EBITDA and EBIT increased by more than 15%, on the back of the recovery of EVN KG and the Energy business line, but also non-recurring elements. Electricity decreased by more than 25%, mainly due to thermal assets, which are on the front line in dealing with the drop in demand – renewables output was roughly stable. The group confirmed its dividend policy.
EVN AG
FY18/19 results are broadly in line with estimates. Sales were pushed by the growth in renewable generation and higher demand for heat, which offset the lower revenues in the Networks segment and the gradual reduction in thermal electricity production. But, because of higher operating expenses, EBIT grew at a slower pace. Net debt was broadly flat compared to Q3. The guidance of the bottom line is satisfactory.
The group published a mixed set of Q3 figures, operating figures decreased more than expected but the group was able to reduce its net debt and reassure by targeting the higher end of the full-year guidance. Also, the wind capacity expansion is promising and well on track.
EVN released quite a weak set of Q1 results, marked by the lower performance of retail activities following a rise in power prices in Austria, lower networks remuneration and lower capacity payments received for grid stability services. The 2018/19 outlook has been confirmed.
EVN reported a mixed set of FY17/18 results. Sales were down by 6.5% on lower thermal output and warmer weather. However, EBIT was up 13% as it benefited from positive comps (last year’s P&L was impacted by impairment losses in the generation business), lower D&A expenses and lower cost of materials. Net debt decreased by 20%, to €963.7m, allowing gearing to reach 23.5%. Management gave a conservative €160-180m FY18/19 bottom-line guidance.
EVN reported a fairly weak set of H1 results, marked by a strong decrease in thermal electricity generation, lower revenue from natural gas trading and less favourable and lower tariffs in the gas network business in Austria. The group’s conservative FY17/18 targets have been maintained.
• Revenues fell as mild weather negatively impacted volumes sold and distributed. • Margin improvement through lower energy costs in its major divisions. • Outlook confirmed, with net income inbetween the 2015/16 and 2016/17 result.
• Results supported by positive weather conditions which increased distributed and sold volumes • Positive effect from increased volatility in Austria–Germany and the need to use thermal assets for network stability in addition to the one-off effect from the settlement with NEK • Exceptional dividend to be paid following the strong results
The group has raised its full-year outlook and dividend payment prior to its full-year 2016/2017 publication in December. EVN expects net income to be €250m (up 25% from the previous level) driven mainly by positive balance sheet effects (hedging and provisions) and higher distribution and energy sales volumes. As a result, the group will propose a dividend of €0.44/share and a one-time bonus dividend of €0.03/share.
EVN has published its Q3 trading update with revenues increasing +9.2% to reach €1,765.5m. Following the same lines, EBITDA rose by +14.8% and net income by +21.7% to €242m. The group benefited from higher usage of its thermal assets to balance the networks both in Austria and Germany, lower temperatures, and an improvement in the international project business. The group has maintained its full-year outlook, expecting net income to be above the previous year’s levels mainly due to the one-off from the settlement with NEK in Bulgaria (+€38m).
The group has published its half-year results, confirming a positive trend with revenues increasing 9.4% to €1,309m and EBITDA by +13.9% to €481m mainly driven by a 22.5% increase in electricity production. Moreover, lower financial expenses and a better contribution from minorities pushed the group’s net results to a 23.1% to €223.8m. The positive results allowed the company to further strength its balance sheet with net debt decreasing -19.3% to €904.1m, putting gearing at only 30.3%. This resulted in a rating improvement from both Moody’s and S&P, to an A rating in both cases (A3 and A- respectively), with a stable outlook, which is a positive (up from A2 and BBB+). The company decided to maintain its outlook of net income within the previous year’s levels, but improving from the non-recurring effect of the settlement in Bulgaria (€+38m).
The group has published its Q1 results, confirming its positive trend as its revenues increased 6% yoy to €607m driven mainly by a greater use of its thermal plants to support network stability and below-average tempertures in South Eastern Europe. Due to this and positive cost optimisation measures, EBITDA grew by 18.8% yoy to €220m. The group booked €29m of impairments as a hydropower plant project in Bulgaria has been put on hold, but positive effects on interest income reduced substantially the financial expenses along with a substantial decrease in minority interests, boosting the net profit to a 21% yoy increase to €95m. The balance sheet continued to strengthen as net cash flows improved to €59.1m, helping the equity ratio rise to 43.8%, net debt declined further to reach €1.03bn and gearing fell to only 37.5%. The group maintains its net result should remain stable for the full year, but expects an additional positive effect of €38m from the court settlement between EVN and the state-owned Bulgarian company NEK.
EVN has published positive FY15/16 results, despite revenues falling by 4.2% yoy to €2,046m, as EBITDA improved 3.6% yoy to €604m. Operating profit (EBIT) decreased by 2.9% yoy to €260.4m due to higher depreciation (+2.3% yoy) and €77.9m on impairments mainly on its thermal fleet as electricity prices are expected to be lower in the coming years (driven by a downward trend on the forward curve). Despite this, the reported net income of the company increased by 5.6% yoy to €156.4m, translating into an EPS of €0.88/share. Driven by strong operating cash flow, the net debt of the group decreased by 9% yoy to €1,121m. Moreover, the balance sheet remains robust as equity levels increased by 7.5% yoy to €2,510m, where the decrease in net debt has pushed the gearing towards 40.5% (reduced from 47.5%), which is one of the lowest within the sector. The proposed dividend is €0.42/share, in line with expectations. For 2016/17, the company expects net income to remain relatively stable from current levels.
The group has provided some solid Q3 results given the market conditions as revenues decreased 2.9% yoy to €1,616.6m as low water and wind inflows were compensated by a 24% yoy increase in thermal generation to support network stability. In addition, operational improvements, cost-cutting measures and the strong performance of the Austrian network have all led to a 3.3% margin improvement, so that EBITDA increased by +5.7% yoy to €525.4m and operating profit rose 4.5% to €299.3m. Moreover, the lower minority interest offset higher financial expenses and boosted the net income which increased 6.3% yoy to €198.8m. In addition, the balance sheet structure of the company continues to strengthen as net debt has decreased 15.1% ytd, while equity has risen 6.2% ytd. This was mainly driven by a 25.8% yoy increase in operating cash flows and a relatively flat capex at €194m, allowing the group to lower financial liabilities by €117.4m and still maintain a positive net cash flow at €21.1m. Despite positive results, the company maintains its full-year guidance with a relatively stable net result (just above €200m on an adjusted basis) and a dividend payment similar to last year’s.
Revenue misses expectations, but profits beat from top to bottom. The positive start to the year’s performance for the company was achieved despite the 2.3% yoy decrease in revenue to €1,196.8m, as the fall in power prices from the purchase of third parties and cost reductions allowed EBITDA to grow by 10% yoy to €422.4m and operating profit +22.4% yoy to €290.7m, helping net revenue to achieve a +14.8% yoy increase to €189.9m. EVN’s strong results have positively affected its balance sheet as net debt has decreased by 6.7% ytd to €1,148m while the gearing fell to 42.8% (from 47.5%). The group maintains its full year guidance which is a stable net result at around €150m.
Despite difficult market conditions, the group continues to provide positive bottom-line results as margins are improving due to the increase use of its thermal assets to support network stability from renewable volatility in Austria and Germany, offsetting the reduction in energy prices for natural gas and electricity. As a result, revenues decreased by 4.4% yoy to €573m, while EBITDA remained stable at €185m, and net income increased by 8% yoy to €78.8m. Due to an improvement in operating cash flows of 9% yoy, and a reduction of 12% in capex, net debt has been reduced by 12% within a single quarter to reach €1,181m. Free cash flows finished in positive territory. Guidance is maintained with a stable net income for the FY15/16 period, i.e. at around €150m.
Positive FY results for the group as revenue increased 8.2% to €2.13bn, in line with expectations, while EBITDA reached €583.2m (+107%) driven by an 11.1% increase in generation volumes (with a 13% increase from renewable sources and 9% from thermal ones) and 3.6% in network distribution volumes, enough to offset the decrease in sales volumes to end consumers on electricity (-0.3%) and natural gas (2.6%). Net income reached €148.1m, coming from negative territory a year ago, which is slightly below our expectations but in line with the market. The group’s net debt has decreased better than expected to €1.24bn (-24% yoy) due mainly to a strong cash flow generation, scheduled payments on bonds and bank loans and the payments linked to the sodium plant in Moscow decreasing the gross debt of the group. From this, EPS reached €0.83, although on an adjusted basis it is within our expectations of around €1.08, enough to support a dividend payment of €0.42/share with a stable policy and a 40% payout ratio. The forecast for 2015/16 is to have a relatively stable net income, in line with the one obtained for FY14/15.
Revenue increased by 11.3% yoy to €1,664m, which is in line with consensus. However, earnings are better than expected, mainly boosted by positive results in Bulgaria and Macedonia, as the EBITDA reached €497.2m, increasing by 38.8% yoy and beating expectations by 3.22%. Operating profit reached €286.5m coming from negative territory a year ago due to impairments and was 6.6% above forecasts. Net income was also better than expected, by 2.9%, reaching €187.1m. The investment made in the generation business was mainly driven towards renewable energy projects (with additional capacity commissioned) and networks. However, some of the positive tailwinds from regulation that the group benefited from last year in South-Eastern Europe should be slightly reduced due to the 0.4% reduction in tariffs in Bulgaria and 0.3% in Macedonia. End customer prices in Austria will also face an additional reduction of 5% for electricity and natural gas starting from 1 October 2015, which will slightly affect the network tariffs for the group, but to a lesser extent. But the greatest negative effect will come from the 7% reduction in heat prices in Bulgaria. Net debt substantially decreased to €1,293m, a 13.16% decrease in just one quarter, which was mainly driven by a reduction in both bonds and bank loans from scheduled payments, reducing the gross debt of the group. This reduction positively affects the gearing of the group, now reaching 49.1% with a 40.1% equity ratio. The outlook is confirmed for the full year, which is to exceed the group’s net results in 2012-13.
