Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EVN AG. We currently have 6 research reports from 1 professional analysts.
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Networks and grid stability measures support the results
13 Dec 16
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.
Grid stability and Austrian network performance support Q3 results
25 Aug 16
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.
Cost reduction and network stability tools boost earnings
26 May 16
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.
No major surprises in the results, but future lower tariffs expected
26 Feb 16
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 results supported by increased usage of assets for network stability
10 Dec 15
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.
Short-term tailwind countered by a lower future tariff environment
27 Aug 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.
20 Feb 17
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21 Feb 17
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N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
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