EQS-News: EVN AG: Business development in the first quarter of 2024/25

Highlights

• Business development at normal level, as expected
• Decline in revenue from marketing of EVN‘s own electricity generation
• Investment-related increase in depreciation, amortisation and financing costs reduce earnings contribution from the network business
• Ambitious investment programme with roughly EUR 900m annually in implementation
• Commissioning of a wind park in Paasdorf (22.2 MW)
• Progress as planned on the construction of the biomass combined heat and power plant in St. Pölten
• Start of construction on the eighth natural filter plant
• Increased investments in e-charging infrastructure: 600 new e-charging points by 2028 in cooperation with the XXXLutz corporate group

Energy sector environment

The temperature-related energy demand in the first quarter of 2024/25 nearly reflected the long-term average in Austria and Bulgaria, while North Macedonia experienced once again very mild weather. Water flows were stable at the high prior year level during the reporting period, but wind flows were lower. The first quarter of 2024/25 brought a gradual increase in the wholesale prices for electricity which, however, were still substantially lower than the unusually high level of the past two years. Electricity sales volumes were negatively affected by the ongoing strong competition and steadily increasing supplies from customers’ own photovoltaic systems.

Revenue, EBITDA, EBIT and Group net result below previous year’s level

Revenue recorded by the EVN Group declined slightly by 1.3% to EUR 804.1m in the first quarter of 2024/25. This development resulted primarily from a decline in revenues from the marketing of EVN’s own renewable generation and from negative effects from the valuation of hedges. The decline was moderated by positive volume and price effects from the distribution network companies in all three EVN core markets. The supply companies in Bulgaria and North Macedonia also recorded a volume- and price-based increase in revenue.

Other operating income rose due to insurance compensation for damages which resulted from the floodings in Lower Austria during September 2024. The cost of energy purchases from third parties and primary energy expenses increased by 6.8% to EUR 418m, due above all to higher procurement costs in the regulated energy supply business in South East Europe. This increase was contrasted by lower procurement costs at EVN Wärme and for Natural Gas due to lower gas volumes traded.

The cost of materials and services rose by 31.7% to EUR 81.0m, chiefly due to repair costs for flood damages which were largely covered by insurance.

Personnel expenses rose year-on-year to EUR 115.4m. The main reasons included adjustments required by collective bargaining agreements and an increase in the workforce to 7,695 (previous year: 7,452 employees).

Other operating expenses fell by 42.4% to EUR 41.4m. In the previous year, this position was influenced by an impairment loss of EUR 22.5m recognised to outstanding receivables from the project in Budva, Republic of Montenegro, and by the energy crisis contribution for electricity.

The share of results from equity accounted investees with operational nature totalled EUR 47.1m and was therefore slightly higher than the previous year (EUR 46.2m). Higher earnings contributions from RAG and EnergieAllianz were contrasted by a price-related decline of results at Verbund Innkraftwerke.

Based on these developments, EBITDA recorded by the EVN Group declined by 6.0% year-on-year to EUR 253.1m.

The higher volume of investments led to an increase of 7.0% in depreciation and amortisation to EUR 86.9m. In total, EBIT fell by 11.4% year-on-year to EUR 166.2m. Financial results totalled EUR –16.9m (previous year: EUR –11.3m).

The result before income tax fell by 15.4% to EUR 149.2m. After the deduction of EUR 27.7m in income tax expense (previous year: EUR 35.2m) and the earnings attributable to non-controlling interests, Group net result for the period equalled EUR 115.5m. That represents a year-on-year decline of 19.7%. The earnings from discontinued operations (IFRS 5 of disclosure the available-for-sale parts of the international project business), which are included in Group net result, amount to EUR 5.1m (restated prior year value: EUR 12.3m). The decline compared with the restated prior year value reflects the progress on the included large-scale international projects.

Solid balance sheet structure and ambitious investment programme

The capital structure of EVN is stable and solid and provides a sound foundation for the realisation of the investments planned as part of the EVN Strategy 2030. Net debt totalled EUR 1,300.9m as of 31 December 2024 (30 September 2024: EUR 1,129.3m).

In the coming years up to 2030, EVN is going to implement an ambitious investment programme with an annual volume of approximately EUR 900m; roughly three-fourths of this volume will be directed to Lower Austria. These investments will focus on the network infrastructure, renewable generation, e-charging infrastructure and drinking water supplies. New business areas, e.g. the continuous expansion of the e-charging infrastructure or the planning and construction of large battery storage facilities will be specifically developed as the basis for future growth opportunities in a renewable energy future.

Over 3,200 charging points make EVN the largest operator of charging stations in Austria. A cooperation agreement was signed with the XXXLutz corporate group in February 2025, which will drive the expansion of the e-charging infrastructure during the next four years. 600 new e-charging points will be installed at XXXLutz locations by 2028, and the first 12 locations are scheduled for completion by the end of 2025.

Energy. Water. Life. – Developments in the energy and environmental services business

Energy business

Electricity generation from renewable energy reflected the previous year with 656 GWh in the first quarter of 2024/25 (31 December 2023: 662 GWh). Water flows in Austria were at the above-average, high previous year level. The commissioning of additional wind power capacity offset wind flows that fell below the long-term average. Thermal generation rose to 167 GWh due to the increased use of the Theiss power plant for network stabilisation in the reporting period.

The expansion of renewable generation is proceeding rapidly. In the first quarter of 2024/25, the newly built wind park in Paasdorf (22.2 MW) was commissioned. That raised the installed wind power capacity to roughly 500 MW as of 31 December 2024, whereby the expansion target up to 2030 is set at 770 MW. The repowering project for the Prellenkirchen III wind park, which is currently in progress, will increase output from the current level of 14.4 MW to 47.6 MW for this wind park. In the photovoltaic business, two projects in Austria – Peisching (10 MWp) and Markgrafneusiedl (5 MWp) – as well as a project in Bulgaria (2.5 MWp) are soon scheduled for commissioning in the near term.

Environmental and water business

Drinking water supplies in Lower Austria and the improvement of this infrastructure to protect supply security remain a central focal point of EVN’s investments. Construction on the third and final section of the 60 km cross-regional transport pipeline from Krems to Zwettl continued as planned during the reporting period. Completion of the entire pipeline is scheduled for autumn 2025. In Reisenberg, a town in Lower Austria, work started on the construction of a natural filter plant; commissioning is planned for summer 2026.

As reported in an ad-hoc press release on 10 December 2024, EVN and STRABAG have reached an agreement on the key points of a possible sale of material parts of the international project business and are now negotiating binding transaction documents.

Confirmation of the outlook for the 2024/25 financial year

For the 2024/25 financial year, EVN expects Group net result within a range of EUR 400m to EUR 440m – under the assumption of a stable regulatory and energy policy environment. The dividend policy was confirmed and is unchanged. As of the 2024/25 financial year, the dividend will equal at least EUR 0.82 per share in the future, whereby EVN wants its shareholders to appropriately participate in any additional earnings growth. In the medium term, a payout ratio equalling 40% of Group net result, adjusted for extraordinary effects, is targeted.

The Letter to Shareholders on the first quarter of 2024/25 is available under www.investor.evn.at.