15. August 2014 | MVV

MVV Energie sets its sights on more far-reaching reform to green electricity subsidies

New Renewable Energies Act offers greater planning reliability - Next steps involve Amendment to Combined Heat and Power Act and introduction of a non-technology-specific, competitive capacity market for conventional power plants - Mannheim energy company affirms and specifies its earnings forecast

The Mannheim-based energy company MVV Energie (WKN: A0H52F, ISIN: DE000A0H52F5) welcomes the Amendment to the German Renewable Energies Act (EEG) as the prelude to more far-reaching reform of green electricity subsidies. According to MVV Energie's CEO, Dr. Georg Müller, the Federal Government has "steered the expansion in renewable energies along lines that make sense in both ecological and economic terms, while at the same time boosting cost efficiency and competition". At the presentation of the company's financial report for the first nine months of the current 2013/14 financial year (1 October 2013 - 30 June 2014) in Mannheim on Friday, Dr. Müller added that these measures would now have to be followed up in the next round with the Amendment to the German Combined Heat and Power Act (KWKG) and the introduction of a competitive capacity market, one not restricted to specific technologies, for conventional power plants.

Alongside developments in the energy industry, where generation prices witnessed a further decline, the company's business performance between October 2013 and June 2014 was affected above all by very mild weather conditions throughout the winter. This led to the downturn in sales and earnings expected and already announced by MVV Energie in the course of the year. Sales for the period from October through to the end of June thus reduced year-on-year by seven percent to Euro 3.0 billion, while adjusted operating earnings (adjusted EBIT) dropped by 15 percent to Euro 185 million.

Measured in terms of so-called degree day figures across all of the MVV Energie Group's locations, it was around 18 percent warmer in the first nine months of the current financial year than in the previous year's comparative period. The Group's heating energy and gas turnover in its "Sales and Services" segment showed a corresponding reduction of 17 percent. This was one of the key reasons for the decline in earnings.

One of the market-oriented pioneers in the German energy industry
At the same time, the Mannheim-based group of companies has upheld the high tempo of its investment programme in recent months as well. Overall, MVV Energie invested Euro 243 million between October 2013 and June 2014. Of this total, Euro 176 million alone involved growth investments, while a further Euro 67 million was channelled into modernising plants and grids.

"We intend to be one of the market-oriented pioneers in the German energy industry in future as well", stressed Dr. Müller. "With our investments, we are laying a foundation for further sustainable, profitable growth." He therefore announced that the company would be continuously raising the share of electricity generation from renewable energies in its generation portfolio in future too, as well as making further targeted investments in expanding environmentally-friendly district heating and the generation of energy from waste. In the Group's sales activities, he sees key focuses in the development of innovative energy efficiency solutions and energy-related services, as well as new business models for decentralised energy management.

Earnings forecast affirmed and specified
For its full-year earnings, the company has affirmed its existing forecast of posting adjusted operating earnings in the lower third of a range from Euro 170 million to Euro 185 million, and has now specified that MVV Energie expects to generate adjusted EBIT of between Euro 170 million and Euro 175 million. In terms of its annual sales, the company expects to report sales at around the previous year’s level of approximately four billion euros.

 

 

Key figures of the MVV Energie Group
from 1 October 2013 to 30 June 2014
    
Euro million1 Oct 2013
to 30 Jun 2014
1 Oct 2012
to 30 Jun 2013
% change
    
Sales and earnings
Sales excluding energy taxes2 9593 166- 7
Adjusted EBITDA1,2304341- 11
Adjusted EBIT1,2185218- 15
Adjusted EBT1,2152166- 8
Adjusted net income for period 1,2109114- 4
Adjusted net income for period after minority interests1,29590+ 6
Adjusted earnings per share 1,2 (Euro)1.441.37+ 5
Cash flow
Cash flow from operating activities2244143+ 71
Cash flow from operating activities per share (Euro)23.702.17+ 71
Capital structure
Adjusted total assets (at 30 Jun 2014 / 30 Sep 2013)33 9364 037- 3
Adjusted equity (at 30 Jun 2014 / 30 Sep 2013)2,31 4161 391+ 2
Adjusted equity ratio (at 30 Jun 2014 / 30 Sep 2013)2,336.0%34.5%+ 4
Net financial debt (at 30 Jun 2014 / 30 Sep 2013)1 1741 111+ 6
Investments
Total investments243256- 5
of which growth investments176206- 15
of which investments in existing business6751+ 31
Employees
Number of employees (at 30 Jun 2014 / 30 Jun 2013)5 3805 454- 1

 

 

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 figures for previous year and/or 30 September 2013 adjusted
3 excluding non-operating measurement items for financial derivatives

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Roland Kress
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