MVV: Energy system conversion progressing "at full speed"

The Mannheim-based energy company MVV (ISIN: DE000A0H52F5; WKN: A0H52F) has, in the words of its Chief Executive Officer, Dr. Georg Müller, posted a good start to its new 2021 financial year. Presenting the results for the 1^st quarter of the 2021 financial year (1 October 2020 – 31 December 2020) in Mannheim on Friday, he stressed that, even during the current coronavirus pandemic, the company was maintaining a high tempo in sustainably converting the energy system. It was doing this by further expanding renewable energies, enhancing energy efficiency and introducing new green business models. “Alongside economic efficiency and supply reliability, climate protection is and will remain an indispensable component of our corporate strategy. The conversion is progressing at full speed. Our goal is climate neutrality.”

During the pandemic, which continued to shape developments in society and the economy, the top priority for MVV was nevertheless still to protect the health of its customers, business partners and employees. “This enables us as a critical infrastructure provider to guarantee a reliable supply of energy and water and thus meet our special responsibility towards society.” In addition to strict rules on contacts and hygiene, the company still accords great importance to ensuring that a high proportion of its employees work from home.

According to Dr. Müller, climate protection and profitable growth were “no contradiction, but rather two sides of the same coin” at the Mannheim-based group of companies and this was apparent in the company’s results for the 1^st quarter of its financial year. Based on virtually unchanged sales of one billion euros, between October and December 2020 MVV increased its operating earnings (Adjusted EBIT) year-on-year by Euro 17 million to Euro 98 million. On the bottom line, net income for the period after minority interests grew by 21 percent from Euro 39 million to Euro 47 million. This corresponds to earnings of Euro 0.71 per share, as against Euro 0.59 in the same period in the previous year.

The improvement in quarterly earnings was due in particular to earnings contributions from the new gas-fired CHP plant in Kiel, which launched operations a year ago, as well as to the successful performance, also in the international arena, of the renewable energies project development business. A further factor related to the remeasurement of the shares held in Fernwärme Rhein-Neckar GmbH (FRN) in connection with the complete takeover and subsequent full consolidation of this company. Overall, MVV reported earnings growth in all its operating reporting segments. This positive earnings performance once again reflects the investments made in recent years in renewable energies and in the energy system of the future. Comments Dr. Müller: “We are structurally well positioned and have robust business models that complement and balance each other out within our overall portfolio.” This stable foundation was also benefiting the company during the coronavirus pandemic.

Further investments on the way to climate neutrality

On its way to climate neutrality, MVV once again consistently upheld its investments in the 1^st quarter of the current financial year. The company acquired Buhlenberg Windfarm in Hochtaunus District in Hesse, which was developed by its two subsidiaries Windwärts and Juwi, and thus further expanded its proprietary renewable energies generation portfolio in the wind segment by around 10 megawatts to 236 megawatts. With the ground-breaking ceremonies for an organic waste fermentation plant in Bernburg/Saale (Saxony-Anhalt) and a plant for recovering phosphorous from sewage sludge in Mannheim, the company began construction work on two new green projects. In December, MVV also officially launched operations with the link between the non-recyclable waste treatment plant in Leuna (Saxony-Anhalt) and the district heating grid in the neighbouring city of Merseburg.

“Our investments form the basis for our future growth and are consistently aligned towards our own ambitious sustainability and climate targets, with which we are enabling our progress to be measured transparently”, explains Dr. Müller. Provided that its plans are not impeded by developments in the pandemic, in the current financial year MVV plans to invest even more than the Euro 322 million already invested in the previous year, while maintaining the same strategic focuses.

Forecast affirmed

Given its strong performance in the 1^st quarter, the company has affirmed its forecast for the current 2021 financial year, which was already published in December. Although the high level of macroeconomic uncertainty due to the coronavirus pandemic means that it is currently not possible to provide any definitive assessment of further developments, according to its CEO MVV expects its annual results for 2021 to at least match the previous year’s figures. Should the implications of the coronavirus remain within limits, the company sees possibilities to generate further earnings growth. Adjusted EBIT amounted to Euro 233 million in the past 2020 financial year.

The complete quarterly statement is available online at www.mvv.de/investors.