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EVN provided an update with little change to its 2030 strategy with a modest wind and solar capacity target which remains similar to the previous one. One of the core strategies will be to keep focusing on networks infrastructure in which the group plans to invest €3bn by 2030.
Companies: EVN (EVN:VIE)EVN AG (EVN:WBO)
AlphaValue
Like many peers, EVN reported a strong drop in both power and gas volumes sold between September 2022 and June 2023 amid mild winter conditions and consumers‘ energy saving efforts. However, the group delivered higher achieved prices for power supported by the valuation effects of hedging. The group confirmed its FY23 guidance with net income expected from its operations to be about €250m, plus a €158m dividend from Verbund AG (FY21: 46.1m) in which EVN has a 12.6% stake.
The group, which generates c.80% of its EBITDA on the regulated distribution market, reported a decrease in sales volume in both electricity (-13.5%) and gas (-14.9%) as mild temperatures in Europe decreased consumption. However, sales increased by 3.1% to €2,192.6m supported by positive price effects from renewable electricity generation, valuation effects from hedges and price adjustments.
EVN reported better than expected results, despite persisting distortions on internal energy markets combined with unfavourable framework conditions, with revenues up by 30.3% to €1,174 bn. Although the group managed to benefit from high prices on energy markets and volatility, as well as valuation effects on the hedging positions, it also suffered from mild weather conditions in all markets, leading to lower energy demand, but also from a negative earnings contribution from its energy supply en
EVN reported a decline in the operational result versus the previous year amidst exceptional market conditions that weighed on earnings, and more particularly in the generation and energy business units against the backdrop of the current geopolitical situation and the resulting impact of inflation. Energy supply and networks were once again the two main sectors recording a decrease in EBITDA due to higher procurement costs and impairment losses. These disappointing results, combined with the co
EVN saw its operating figures decline versus the previous year as the group struggled to deal with the significant energy market distortions. The networks and supply activities faced extra costs with a relative inability to pass these through to end-customers, or with a lag on a best-case scenario. The full-year net income guidance was confirmed but the overall message sent to the market was negative. With windfall taxes starting to show their teeth in Austria, cautiousness must prevail.
EVN beat expectations for FY20/21 (September-ending fiscal year), reaching a net result 50% above guidance and 20% above our estimate. Electricity prices, on average 2x higher yoy on the spot market and 3.5x on the forward market, obviously were the main driver. The dividend proposal, €0.52 per share, is 6% higher than our expectation. However, the net result guidance for FY21/22 seems very conservative, 17% and 24% lower than the consensus and our expectations, respectively. Perhaps a little
In line with its first part of the year, EVN released a satisfying 9M 20/21 set of results. EBITDA came in 27.5% higher yoy, ahead of our expectations, driven by weather-related strong volumes in a very positive power price environment. In particular, its exposure to hydro generation and gas networks were key. Business fundamentals are improving, partially explaining the very strong momentum of the stock (+25% since March 2021), even if the equity stake in Verbund is not unrelated. Positive
EVN released a solid set of H! figures (September-ending fiscal year), beating our expectations. The group’s EBIT was up by 10.3% yoy as it benefited from the commissioning of a new wastewater treatment plant in Kuwait, as well as favourable weather conditions in Austria which drove energy prices and volumes higher. FY20/21 guidance confirmed, but now considered to be conservative in the light of the solid start to the year. Positive view confirmed.
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.
Companies: 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.
Research Tree provides access to ongoing research coverage, media content and regulatory news on EVN AG. We currently have 27 research reports from 1 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
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Liberum
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Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
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Edison
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Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
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Canaccord Genuity
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Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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