MVV Energie confirms annual forecast

After the first nine months of its current 2014/15 financial year, the Mannheim-based energy company MVV Energie has confirmed its annual forecast, namely of achieving operating earnings (adjusted EBIT) at around the previous year's level. Adjusted EBIT in the previous year amounted to Euro 170 million. This was announced by MVV Energie (WKN: A0H52F, ISIN: DE000A0H52F5) in Mannheim on Friday. The group of companies has thus managed to offset the charges on earnings resulting from the ongoing difficult framework in the energy industry and from one-off items. Delays in the launch of operations at the two new power plants in the UK in particular, as well as mild weather conditions in the 1st quarter of 2014/15 and below-average wind volumes in the current year, had led to lower earnings contributions than expected in the past months.

"We are successfully countering these negative factors by cutting our costs and enhancing our efficiency", stressed Dr. Georg Müller, CEO of MVV Energie, when presenting the nine-month interim report (1 October 2014 - 30 June 2015). The annual forecast for the first time also includes the result of the Group's involvement in Wörrstadt-based Juwi AG. MVV Energie acquired a 50.1 percent stake in this company, the leading project developer in the field of renewable energies, at the end of 2014.

Positive nine-month results
At Euro 196 million, the operating earnings reported by MVV Energie for the first nine months of the current 2014/15 financial year are around 8 percent higher than in the previous year. Due above all to a decline in electricity and gas volumes in the energy trading business as a result of the increasing share of short-term trading, sales for the same period decreased by 9 percent to Euro 2.6 billion.

Given lower loan interest expenses, adjusted EBT grew year-on-year from Euro 149 million to Euro 169 million. For the period from October 2014 to June 2015, this resulted in net income (adjusted net income for the period after minority interests) of Euro 103 million, as against Euro 95 million in the previous year.

Sustainable investments in the future
MVV Energie invested a total of Euro 296 million in the first nine months of the current financial year, one quarter more than in the previous year’s period (Euro 237 million). Of this sum, Euro 218 million was channelled into growth investments, such as the construction of the two plants in the UK, the acquisition of the Juwi stake and of Windwärts and the construction of the new biomethane plant in Stassfurt (Saxony-Anhalt). A further Euro 78 million was invested in modernising existing plants and grids. Driven in particular by the acquisition of Windwärts and the increase in the UK operations teams, the workforce grew year-on-year by around 100 employees to its current total of 5,208 employees.

"We have invested a total of Euro 2.3 billion since 2009", commented Dr. Müller. "In strategic terms, we are working to combine renewable and highly efficient conventional energies." Based on its enhanced corporate strategy, with key focuses on renewable energies and energy efficiency, MVV Energie intends to invest a further Euro 3 billion in the years ahead and thus make a sustainable contribution to building the energy system of the future. "This way, we intend to meet our responsibility to society as a whole, safeguard the interests of our employees and benefit our shareholders", underlined the CEO of the Mannheim-based Group.