MVV Energie earnings on course to match previous year
Downturn in 1st quarter earnings now made up - 14 percent rise in net income for period due to lower interest expenses - Full-year outlook held back by one-off factors - Pace of investment remains high: Further 3 billion euros in years ahead - Corporate strategy enhanced
The Mannheim energy company boosted its earnings from forward-looking investments in renewable energies and energy efficiency in the three-month period from January to March 2015. This enabled it more or less to make up for the largely weather-related downturn seen in the 1st quarter of its 2014/15 financial year. Mild winter weather between October and December 2014 had led to a substantial 16 percent downturn in the company's results and in its heating energy and gas turnover in particular. At Euro 154 million, by contrast, operating earnings (adjusted EBIT) for the 1st half of the current 2014/15 financial year (1 October 2014 - 31 March 2015) are now 3 percent ahead of the previous year's figure. This was announced by MVV Energie (WKN: A0H52F, ISIN: DE000A0H52F5) when presenting its interim report in Mannheim on Friday. Due to overall developments on the energy markets, with lower electricity and gas volumes in the energy trading business, sales reduced by 10 percent to Euro 1.8 billion.
Benefiting from lower loan interest expenses, adjusted EBT grew from Euro 121 million in the previous year to Euro 138 million. Overall, MVV Energie can thus report profit (adjusted net income for period after minority interests) of Euro 82 million for the 1st half of 2014/15 - 14 percent higher than in the previous year.
According to CEO Dr. Georg Müller, after the first half of the financial year operating earnings at the Mannheim-based group of companies are on course to match the previous year's figure. Results for 2014/15 as a whole will be held back by one-off factors such as the mild winter, with lower results for district heating and gas, and delays at the new energy from waste plant in Plymouth and the biomass power plant at Ridham Dock. Assuming earlier operations launches and corresponding earnings contributions from these plants, the company had previously aimed to increase its annual earnings to between Euro 180 million and Euro 195 million. For the financial year as a whole, MVV Energie now rather expects to achieve adjusted EBIT at around the same level as in the previous year, in which operating earnings amounted to Euro 170 million.
Pace of investment remains high
MVV Energie invested Euro 250 million in the first six months of the current financial year alone, and thus more than 50 percent more than in the previous year's period (Euro 160 million). All in all, the company intends to invest around Euro 400 million in the current financial year, of which Euro 270 million in its growth business and Euro 130 million in its existing business, i.e. in main-taining and modernising its proprietary plants and grids.
Comments Dr. Müller: "Our adjusted equity ratio of 34.4 percent will enable us to maintain a high pace of investment." Key focuses here involve expanding renewable energies and boosting energy efficiency and combined heat and power generation in conjunction with a further expansion in environmentally-friendly district heating. "Over the past five years, we have already invested Euro 2.3 billion in the energy system of the future", stressed MVV Energie's CEO. "We have successfully and sensibly combining renewable and highly efficient conventional energies under one roof."
As a result of these growth investments, the Group's workforce has grown by 93 employees compared with the previous year to reach its current total of 5,220 employees.
Corporate strategy continually enhanced
The Mannheim energy group will be focusing on its forward-looking growth in the years ahead as well and will be investing a further 3 billion euros. To this end, MVV Energie has continually enhanced its corporate strategy to account for changes in the regulatory climate and economic and competitive framework in the energy industry. Comments Dr. Müller: "Consistent with the 'Energising my future' motto, we are building on new energy and mature competence and are focusing even more closely on our customers." Alongside the company’s investments, this also relates in particular to innovative business models in its sales activities and new professional services. "We have already assumed a pioneering role in converting the German energy system. With our corporate strategy, we are contributing to the successful implementation of this conversion and securing our competitive position."
The complete financial report is available at
|Key figures of the MVV Energie Group|
1 October 2014 to 31 March 2015
|Euro million||1 Oct 2014|
to 31 Mar 2015
|1 Oct 2013|
to 31 Mar 2014
|Sales and earnings|
|Sales excluding energy taxes1||1 841||2 056||- 10|
|Adjusted EBITDA1,2||230||226||+ 2|
|Adjusted EBIT1,2||154||150||+ 3|
|Adjusted EBT1,2||138||121||+ 14|
|Adjusted net income for period 1,2||98||87||+ 13|
|Adjusted net income for period after minority interests1,2||82||72||+ 14|
|Adjusted earnings per share 1,2 (Euro)||1.25||1.10||+ 14|
|Cash flow from operating activities1||5||62||- 92|
|Cash flow from operating activities per share1 (Euro)||0.07||0.93||- 92|
|Adjusted total assets (at 31 Mar 2015/30 Sep 2014)1,3||4 065||3 915||+ 4|
|Adjusted equity (at 31 Mar 2015/30 Sep 2014)1,3||1 400||1 396||0|
|Adjusted equity ratio (at 31 Mar 2015/30 Sep 2014)1,3||34.4%||35.7%||- 4|
|Net finantial debt (at 31 Mar 2015/30 Sep 2014)1||1 390||1 063||+ 31|
|Total investments1||250||160||+ 56|
|of which growth investments1||197||119||+ 66|
|of which investments in existing business1||53||41||+ 29|
|Number of employees (at 31 Mar 2015/31 Mar 2014)1||5 220||5 127||+ 2|
|1||previous year's figures adjusted|
|2||excluding non-operating measurement items for financial derivatives, excluding structural adjustments for part-time early retirement and including interest income from finance leases|
|3||excluding non-operating measurement items for financial derivatives|