MVV Energie posts positive earnings performance
Operating earnings rise to Euro 103 million in 1st quarter of 2015/16 financial year - MVV Energie CEO Dr. Georg Müller states: "Renewables could cover 55 percent of Germany's electricity generation by 2025.
Mannheim-based energy company MVV Energie (WKN: A0H52F, ISIN: DE000A0H52F5) achieved the positive earnings performance forecast for the 1st quarter of its current 2015/16 financial year (1 October - 31 December 2015). As announced by the company when presenting its interim report in Mannheim on Friday, operating earnings (adjusted EBIT) grew year-on-year from Euro 64 million to Euro 103 million.
According to company CEO Dr. Georg Müller, this pleasing earnings performance was due above all to the two new UK power plants and to the figures of the Rhineland-Palatinate renewable energies project developer Juwi, in which MVV Energie has held a majority stake for just over a year. Not only that, the new renewable energies plants that launched operations in the past year - new windfarms and two new biomethane plants in Stassfurt and Barby - contributed positively to earnings, as did the year-on-year increase in wind volumes at the Group's proprietary windfarms.
With regard to the renewable energies project development business, Dr. Müller stressed that, unlike in the first three calendar quarters, which tend to be dedicated to planning, developing and building plants, in the months of October to December numerous projects are completed and invoiced. "Project developers such as Juwi and Windwärts generate the predominant share of their earnings in this quarter. By contrast, the period from January to September is characterised by costs - both material expenses and of course personnel expenses." Following a downturn in earnings from 2012 to 2014, Juwi had returned to the right path since 2015.
This is not yet reflected in MVV Energie’s sales figures, as the Juwi stake was only fully consolidated from mid-December onwards. At Euro 940 million, MVV Energie's sales for the 1st quarter of 2015/16 were therefore at the previous year's level. The Group thus managed to offset reductions in sales due to mild weather conditions and a further downturn in wholesale prices with higher sales at its new plants.
Consistent with its adjusted EBIT, MVV Energie also reported an increase in its pre-tax earnings in the 1st quarter of the current financial year: adjusted EBT thus grew from Euro 54 million to Euro 90 million. The Group's profit - adjusted net income after minority interests - rose year-on-year by Euro 22 million to Euro 54 million. That corresponds to adjusted earnings per share of Euro 0.82, as against Euro 0.48 in the previous year's period.
The Group's workforce also grew in line with its new shareholdings and plants. With a total of 6,268 employees, the group of companies had around 20 percent, or 1,035 employees, more at the end of 2015 than twelve months previously.
For the financial year as a whole, the company has confirmed the positive outlook contained in its earnings forecast. From an operating perspective, MVV Energie thus expects it adjusted EBIT to increase by around 15 percent. In the previous year, the company generated operating earnings of Euro 175 million. MVV Energie also expects its sales to increase in the current financial year, in this case to more than Euro 4 billion. The full consolidation of the Juwi shareholding will impact on sales figures from mid-December onwards.
Pace of investment remains high
For MVV Energie, these positive figures are the result of the strategic realignment already initiated six years ago. "We acted very early to set the right course for our company and are now reaping the fruits of our investments in the energy turnaround," explained Dr. Müller. In recent years, the Group has invested almost three billion euros in expanding renewable energies and in boosting energy efficiency and combined heat and power generation in conjunction with environmentally-friendly district heating, while at the same time also developing forward-looking new business models. "By smartly linking renewable and conventional energies, we have successfully assumed a pioneering role in the German energy supply conversion", stressed MVV Energie's CEO. "We will be maintaining a high pace of investment and will be investing a further three billion euros in the years ahead."
Renewables expansion should not be throttled
Dr. Müller therefore appealed to politicians "not to throttle the smoothly running motor when it comes to expanding renewable energies, but rather to keep the pace up". Given its benefits in terms of economic viability and grid reliability, onshore wind power in particular should continue to be expanded nationwide. To this end, in the context of the amendment to the German Renewable Energies Act (EEG) he called for the entry threshold for the reference yield to be reduced from 70 percent to 65 percent and for the annual tender volume to be increased from the gros total of 2.0 gigawatts currently envisaged to a net total of 2.5 gigawatts. Added Dr. Müller: "This way, we can consolidate the rate of expansion and increase the target - not adjusted since 2010 - of covering a 45 percent share of German electricity generation by 2025 to 55 percent."
|Key figures of the MVV Energie Group|
1 October 2015 - 31 December 2015
|Euro million||1 Oct 2015 to 31 Dec 2015||1 Dec 2014 to 31 Dec 2014||% change|
|Sales and earnings|
|Sales excluding energy taxes||940||941||0|
|Adjusted EBITDA1||147||102||+ 44|
|Adjusted EBIT1||103||64||+ 61|
|Adjusted EBT1||90||54||+ 67|
|Adjusted net income for period1||64||38||+ 68|
|Adjusted net income for period after minority interests1||54||32||+ 69|
|Adjusted earnings per share 1 (Euro)||0.82||0.48||+ 71|
|Cash flow from operating activities||- 21||9||-|
|Cash flow from operating activities per share (Euro)||- 0.31||0.14||-|
|Adjusted total assets (at 31 Dec 2015 / 30 Sep 2015)2||4 690||4 073||+ 15|
|Adjusted equity (at 31 Dec 2015 / 30 Sep 2015)2||1 496||1 376||+ 9|
|Adjusted equity ratio (at 31 Dec 2015 / 30 Sep 2015)2||31.9%||33.8%||- 6|
|Net financial debt (at 31 Dec 2015 / 30 Sep 2015)||1 480||1 341||+ 10|
|Total Investments||79||191||+ 59|
|of which growth investments||56||157||- 64|
|of which investments in existing business||23||34||- 32|
|Number of employees (at 31 Dec 2015 / 31 Dec 2014)||6 268||5 233||+ 20|
|1||excluding non-operating measurement items for financial derivatives, excluding structural adjustment for part-time early retirement and including interest income from finance leases|
|2||excluding non-operating measurement items for financial derivatives|
|3||correction in previous year’s figure|