EVN profit falls 9.4% as weak wind and hydropower offset revenue gains

Investing.com -- EVN AG’s (VIE:EVNV) profit for the first three quarters of the 2024-25 financial year fell 9.4% to €434.7 million as weaker renewable generation and a drop in financial income offset higher revenue and operating earnings, the Austria-based company reported on Thursday.

Revenue rose 5% to €2.36 billion in the nine-month period ending June 30, driven by higher volumes and prices in distribution networks and sales operations in Bulgaria and North Macedonia. Colder winter temperatures also lifted results at EVN Wärme. 

The gains were partly offset by lower revenue from the company’s renewable generation and natural gas trading, as well as negative valuation effects from hedging transactions.

Expenses for external electricity purchases and energy sources increased 14.9% to €1.21 billion due to higher procurement costs in Southeastern Europe. 

Lower gas volumes and prices helped dampen the rise. Material expenses climbed 9.9% to €216 million, largely from repairs related to flood damage, which were covered by insurance. 

Personnel expenses rose, while other operating costs fell from the prior year when they were impacted by receivables write-downs.

EBITDA rose 14.2% to €713.6 million, supported by stronger earnings from equity-accounted companies including EVN KG, Burgenland Energie and RAG. EBIT climbed 18.3% to €447.1 million. 

The financial result declined to €93.5 million from €164.7 million, mainly because Verbund AG reduced its dividend to €2.80 per share from €4.15 and from currency effects tied to the sale of two combined heat and power plants in Moscow in October 2024. Earnings before taxes stood at €540.5 million, down 0.4% from a year earlier.

Electricity generation fell 12.3% to 2,268 GWh, with renewable output dropping 17.5% to 1,789 GWh. 

Below-average wind and hydropower conditions outweighed capacity expansions. Thermal generation increased to 480 GWh, as the Theiss power plant was called on more frequently for grid stabilization. 

Renewables accounted for 78.8% of total generation, compared with 83.9% in the prior year. 

In May and June, EVN commissioned two photovoltaic parks in Lower Austria with a combined capacity of 9.4 MWp. Wind farm projects in Gnadendorf and Prellenkirchen remain under construction.

Investments rose 22% to more than €530 million, with three-quarters directed to projects in Lower Austria. Spending focused on grid infrastructure, renewable generation, e-mobility charging systems and drinking water supply. 

Net debt stood at €1.12 billion at the end of June, little changed from September 2024. Construction of a 60-kilometer water pipeline between Krems and Zwettl advanced, with completion scheduled for autumn 2025. Work also continued on a new natural filtration plant in Reisenberg.

In June, EVN signed a contract with STRABAG to sell its international project business. Closing is expected within six months, subject to approvals and other conditions.

For the full 2024/25 year, EVN confirmed its outlook for profit between €400 million and €440 million. The company expects to pay a dividend of at least €0.82 per share and has set a medium-term target payout ratio of 40% of adjusted profit.