MVV Energie upholds positive earnings performance
Operating earnings rise to Euro 204 million in first six months of current 2015/16 financial year – MVV Energie CEO, Dr. Georg Müller: "Germany needs forward-looking renewables legislation."
The Mannheim-based energy company MVV Energie (WKN: A0H52F, ISIN: DE000A0H52F5) successfully maintained its positive earnings performance in the 1st half of its current 2015/2016 financial year (1 October 2015 – 31 March 2016). As announced by the company at the presentation of its financial report in Mannheim on Friday, operating earnings (adjusted EBIT) grew year-on-year from Euro 154 million to Euro 204 million. Sales rose over the same period from Euro 1.8 billion to more than Euro 2.0 billion.
According to company CEO Dr. Georg Müller, this sales and earnings growth was driven above all by the renewable energies project development business field, as well as by two new UK power plants, new biomethane plants in Saxony-Anhalt and the wind power business. Juwi AG had also been fully consolidated as a shareholding since mid-December 2015 and was now contributing to the Group’s positive performance. By contrast, the ongoing low clean dark spread (CDS) and low water levels on the Rhine, which increased the costs of transporting coal between October and December 2015, impacted negatively on the Trading and Portfolio Management segment.
In parallel to adjusted EBIT, MVV Energie also reported growth in its pre-tax earnings (adjusted EBT), which rose from Euro 138 million to Euro 171 million at the end of the first half of the current financial year. Profit, i.e. adjusted net income for the period after minority interests, rose year-on-year by Euro 21 million to Euro 103 million. That corresponds to adjusted earnings per share of Euro 1.57, as against Euro 1.25 in the previous year’s period. The new shareholdings and plants also enlarged the workforce. With 6,125 employees, the Group had more than 900 employees more at the end of March 2016 than twelve months earlier.
MVV Energie has confirmed its existing full-year earnings forecast, according to which it expects adjusted EBIT to grow by around 15 percent from an operating perspective. In the previous year, the company generated operating earnings of Euro 175 million. MVV Energie expects its sales to increase to more than Euro 4 billion in the current financial year.
Pace of investment remains high
MVV Energie maintained a high pace of investment in the 1st half of 2015/16. Of total investments of Euro 118 million, an amount of Euro 75 million, or 64 percent, involved growth investments, while Euro 43 million, or 36 percent, was channelled into investments in the existing business, i.e. modernising plants and grids. Key growth focuses are still on expanding renewable energies, boosting energy efficiency, combined heat and power generation in conjunction with environmentally-friendly district heating, and developing new, forward-looking business models. The Mannheim energy company intends to invest a further three billion euros in the years ahead and, by smartly combining renewable and conventional energies, to extend its pioneering role in converting the German energy supply.
Further adjustments called for to ensure forward-looking renewables legislation
With regard to the conversion in renewable energy subsidies to a tender-based model planned to be introduced from 2017, MVV Energie is speaking out in favour of continuing the expansion and against the slowdown planned by the Federal Government for renewable energies – and especially for onshore wind power. After yesterday’s conference of German state premiers Dr. Müller called for the pace of expansion now achieved for onshore wind power, with annual net tender volumes of 2,500 megawatts, to be maintained. "Several scientific studies have shown that it would certainly not lead to significantly higher costs for end consumers if the government were to raise the targets for the renewables share from 45 percent to 55 percent by 2025 and were not to limit the addition of onshore wind capacities."
Given its decentralised nature and its proximity to consumer centres, onshore wind power makes a valuable contribution towards ensuring system stability and reducing the need for grid expansion. The tender system should therefore offer a regional balance and ensure that the expansion in wind power is distributed across the whole of Germany and not just focused in the north. Comments Dr. Müller: "It has to be possible to put decentralised energies to decentralised use." South and central Germany also offered great potential for wind power, and this should not be neglected by setting the wrong priorities. To avoid this, account should also be taken of good wind locations with reference yields of 65 percent to 70 percent and regional quotas should also be added.
|Key figures of the MVV Energie Group|
1 October 2015 - 31 March 2016
|Euro million||1 Oct 2015 to 31 Mar 2016||1 Dec 2014 to 31 Mar 2015||% change|
|Sales and earnings|
|Sales excluding energy taxes||2 043||1 841||+ 11|
|Adjusted EBITDA1||290||230||+ 26|
|Adjusted EBIT1||204||154||+ 32|
|Adjusted EBT1||171||138||+ 24|
|Adjusted net income for period1||121||98||+ 23|
|Adjusted net income for period after minority interests1||103||82||+ 26|
|Adjusted earnings per share 1 (Euro)||1,57||1,25||+ 26|
|Cash flow from operating activities||21||5||>+ 100|
|Cash flow from operating activities per share (Euro)||0,31||0,07||>+ 100|
|Adjusted total assets (at 31 Dec 2015 / 30 Sep 2015)2||4 577||4 073||+ 12|
|Adjusted equity (at 31 Dec 2015 / 30 Sep 2015)2||1 489||1 376||+ 8|
|Adjusted equity ratio (at 31 Dec 2015 / 30 Sep 2015)2||32,5%||33.8%||- 4|
|Net financial debt (at 31 Dec 2015 / 30 Sep 2015)||1 486||1 341||+ 11|
|Total Investments||118||250||- 53|
|of which growth investments||75||197||- 62|
|of which investments in existing business||43||53||- 19|
|Number of employees (at 31 Dec 2015 / 31 Dec 2014)||6 125||5 220||+ 17|
|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|