Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EVN AG. We currently have 5 research reports from 1 professional analysts.
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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.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.