MVV reports a good start to a special year
Mannheim energy company MVV with growth in sales and operating earnings – MVV’s CEO Dr. Müller: “Many of the climate protection measures decided in recent years will become a reality in 2020” – Company confirms forecast for 2020 financial year
According to its CEO, Dr. Georg Müller, the Mannheim-based energy company MVV (ISIN: DE000A0H52F5; WKN: A0H52F) can report a successful start to its new 2020 financial year. When presenting the results for the 1st quarter of the 2020 financial year (1 October 2019 – 31 December 2019) in Mannheim on Friday, he stressed that in the current financial year the company can report its first positive earnings contributions from the new gas-powered CHP plant in Kiel, as well as higher plant availability in its environmental energy business. These contrasted with the charges incurred in the previous year’s period due to follow-up costs for the joint power plant now decommissioned in Kiel (GKK) and due to low water levels on the Rhine. Overall, in the three-month period from October to December 2019 MVV increased its sales by around 5 percent to Euro 1.04 billion and its operating earnings (adjusted EBIT) from Euro 67 million to Euro 81 million.
“2020 will be a special year for our company”, announced Dr. Müller. “Many of the seeds we planted in recent years will bear fruit in this financial year”. At Kiel Förde, for example, the state-of-the-art gas-powered CHP plant already took up operations at the end of November 2019. With its 20 gas motors, it will set “new standards in terms of flexibility, efficiency and sustainability.”
Just a few days ago, MVV set a first major milestone on its way towards green heating energy, and thus towards decarbonising district heating, by connecting up its waste incineration plant to its regional district heating grid. This will enable up to 30 percent of the annual heating energy needs in Mannheim and the region to be covered with renewable energies in future. Comments Dr. Müller: “We have begun a new chapter in our district heating success story.”
Increased renewable electricity generation
MVV has also made progress in recent months in terms of expanding its own electricity generation from renewable energies. Before the end of the old year, it took over the windfarm developed by its Juwi subsidiary in Freisen-Rothsberg/Saarland. This means that the group of companies now has renewable energies plants with installed capacities of 481 megawatts.
The progress made in expanding renewable energies is reflected in actual electricity generation volumes. The renewable electricity generated at the MVV Group rose year-on-year by around 9 percent to 338 million kilowatt hours in the 1st quarter. This is equivalent to the consumption of almost 400,000 average 3-person households. And the renewable energies project development business, for which the two subsidiaries Juwi and Windwärts are responsible within the group of companies, is also regaining momentum. At 106 megawatts, the volume of capacity marketed rose year-on-year by 36 percent.
For the company’s CEO, the operating performance also shows that “MVV has the right strategy”. Climate protection and sustainability had been crucial components of the corporate strategy for many years already. The company would consistently implement the course it had taken with an ongoing high pace of investment. MVV invested around Euro 92 million between October and December 2019, Euro 21 million more than in the same period in 2018. As previously, key focuses of investment are still renewable energies, boosting energy efficiency and innovative products and services for private, business and industrial customers.
This way, MVV is successfully combining sustainability and economic efficiency, and that on a long-term basis. The company has therefore confirmed the forecast published in December 2019 and, from an operating perspective, expects to generate slight growth in both sales and operating earnings in the 2020 financial year as a whole.
The complete quarterly statement is available online at www.mvv.de/investors.
|MVV in Figures|
|1 Oct 2019 to 31 Dec 2019||1 Oct 2018 to 31 Dec 2018||% Change|
|Adjusted sales excluding energy taxes1 (Euro million)||1,042||997||+ 5|
|Adjusted EBITDA2 (Euro million)||128||114||+ 12|
|Adjusted EBIT2 (Euro million)||81||67||+ 21|
|Adjusted net income for period2 (Euro million)||47||38||+ 24|
|Adjusted net income for period after minority interests2 (Euro million)||39||32||+ 22|
|Adjusted earnings per share2 (Euro)||0.59||0.48||+ 23|
|Cash flow from operating activities1 (Euro million)||- 36||12||-|
|Cash flow from operating activities per share1 (Euro)||- 0.55||0.18||-|
|Adjusted total assets at 31 Dec 2019 / 30 Sep 20193 (Euro million)||4,614||4,472||+ 3|
|Adjusted equity at 31 Dec 2019 / 30 Sep 20193 (Euro million)||1,590||1,544||+ 3|
|Adjusted equity ratio at 31 Dec 2019 / 30 Sep 20193 (%)||34.5||34.5||0|
|Net financial debt at 31 Dec 2019 / 30 Sep 2019 (Euro million)||1,473||1,345||+ 10|
|Investments (Euro million)||92||71||+ 30|
|Number of employees at 31 Dec 2019 / 31 Dec 2018||6,141||5,981||+ 3|