Ad-hoc | 3 March 2000 08:29

Ad hoc-Service: EVN AG EVN 99/00 Q1 results

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Development of business in the first quarter of 1999/00 Result up over the previous year despite a drop in sales revenues Faster market deregulation leads to increased pressure on prices Successful alliance policy Sales volumes Electricity GWh 1,669 + 0.7 % Natural gas m. m3 505 – 1.7 % Heating GWh 247 + 13.7 % Sales revenues ATS m. 3,979 EUR m. 275.9 – 2.2 % Operating result (EBIT) ATS m. 908 EUR m. 66,0 + 1.2 % Profit before tax ATS m. 807 EUR m. 58,6 + 7.0 % EVNs Q1 1999/00 Letter to Shareholders can be downloaded from EVNs homepage at http://www.evn.at For further information contact: Michael Längle (Chief Financial Officer) Tel. +43 2236 200 12324 Sabine Ohler (Investor Relations Officer) Tel. +43 2236 200 12201 e-mail: sabine.ohler@evn.at Note to editors: EVN is Austria s leading fully integrated multi-service utility company, supplying its customers with electricity, gas, heating, energy consulting, as well as services in related areas, such as telecommunications. EVN Business Development in the first quarter of 1999/00 Sales volumes and revenues The 1st quarter of the 1999/00 financial year was mainly influenced, apart from a sizeable increase in gas wholesale prices, by temperatures that were considerably lower than those in the previous year, but only slightly up on the long-term average. The upturn in Austrian economic growth and further rapid expansion in the gas and heating supply sectors had a positive impact on EVNs business development. Electricity volumes sold to domestic and industrial customers increased slightly by a total of 0.7 %, electricity sales revenues were 1.3 % above those of the previous year. A 1.5 % drop in revenues from domestic customers was more than compensated for by sales in the electricity trading business. Revenues from industrial customers fell by 4,8 % due to the relatively low average revenues in this customer segment. The total 1.7 % fall in gas volumes sold was caused by the marked drop in demand from external power stations. Gas revenues were 6.2 % below the the previous years level. This fall was mainly due to reduction in total volumes sold and rebates limited in duration granted to large commercial customers. Despite an increase in sales volumes, the revenues from local networks declined by 2.2 %, and those from industrial customers by 5.8 %. Despite the comparatively mild temperatures, further grid expansion led to continued growth in heating volumes sold. Sales to domestic customers rose by 17.9 % and those to industrial customers by 11.7 %. This provided the basis for a continued increase in heating revenues of 14.8 %. Expenditure The more favourable electricity purchase prices resulting from by market deregulation led to a reduction in the cost of electricity purchases over the previous year despite an increase in volume. However, the substantial rise in gas purchase prices caused increased purchasing expenses. All in all, expenditure on electricity purchases and primary energy went up by 6.9 % as compared with the previous year. During the first quarter of the 1999/00 financial year, the EVN Group employed on average a work force of 2,224. Despite increases caused by consolidation and a related increase in personnel, work force numbers were cut still further and were 99, or 4.3%, down on the comparative figure for the previous year. This development was primarily responsible for a fall in personnel expenditure of 3.4%. The sharp 20.2 % fall in depreciation was due first and foremost to the extraordinary depreciation undertaken during the previous financial year as a response to electricity market deregulation. Conversely, other operating expenses, which mainly relate to consulting and advertising, rose by 19.7 %. Result Despite the drop in sales revenues, the operating result (EBIT) at ATS 908 million (EUR 66.0 million), was 1.2 % up on the figure for last year. Both an increased interest balance and reduced expense from the valuations of foreign currency bonds led to an improvement of 29.5 % in the financial result compared the previous year. All in all, the result before tax at ATS 807 million (EUR 58.6 million) was 7.0 % up on the comparable figure for the preceding year. Outlook Commenting on the result, Rudolf Gruber, EVNs CEO, said, “The good EVN result for the first quarter of 1999/00 underlines the fact that the company has developed successfully even in the tougher competitive environment. With its multi-service utility strategy, attractive pricing policy and various alliances and strategic investments in the energy sector, EVN has prepared itself well for the changing market situation. In addition, comprehensive cost reduction programmes, as well as the extraordinary depreciation charge undertaken during the past year, have all served to strengthen the companys competitive position. In view of the debate over the accelerated total deregulation of the electricity market, EVN has decided to bring forward the price reduction originally planned to coincide with the expiry of the purchase agreement with Verbund in 2001. On March 1, 2000 therefore, a price cut of some ATS 230 million per year came into effect. This step further emphasises EVNs image as one of Austrias most reasonably priced electricity suppliers which promotes customer loyalty and enhanced market positioning.” Ende der Mitteilung