Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EVN AG. We currently have 7 research reports from 1 professional analysts.
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Growth across all business segments in the first quarter
28 Feb 17
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.
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.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
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N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.