Q3 2024 EVN AG Earnings Call Transcript
Key Points
- EVN AG (WBO:EVN) reported a significant increase in renewable energy generation, with the share of renewable generation rising from 76% to 84% during the reporting period.
- The company is on track with its renewable generation capacity expansion, having completed the repowering of an eight-megawatt wind park and progressing with a new 22-megawatt wind park in Paasdorf.
- Financial results improved with a solid group net result of EUR479.6 million in the first nine months of the financial year.
- The company's financial flexibility remains solid, with contractually committed untapped credit limits amounting to EUR835 million.
- EVN AG (WBO:EVN) expects the result to be at the upper part of the previously communicated range of EUR420 million to EUR460 million, indicating a positive outlook for the financial year.
- Group revenue decreased by 13.9% year-on-year to EUR2.5 billion, primarily due to a decline in wholesale prices and reduced revenue from electricity generation in Southeast Europe.
- The energy supply business is still under pressure, with EVN AG (WBO:EVN) reporting a loss partly due to an impairment of natural gas inventories.
- Personal expenses increased by 16.8% compared to the prior year, reflecting a necessary increase in workforce and adjustments according to collective bargaining agreements.
- The network segment faced challenges with lower distribution volumes due to mild weather conditions and changing consumer behavior towards energy savings.
- The Southeast Europe segment experienced a decrease in revenue to EUR1 billion due to the downward trend in electricity prices and lower network tariffs in Bulgaria.
Good morning, ladies and gentlemen, and welcome to EVN's results for the first three quarters of 2023, 2024 financial year. (Operator Instructions) Let me now turn the floor over to Stefan Szyszkowitz.
Welcome everybody to EVN's conference call on the results for the first three quarters of this current financial year. The first nine months of our financial year were influenced by mild temperatures in all three markets, and therefore, low energy demand. We are also still observing changes in customer behavior towards a reduction in energy consumption through energy-saving measures, and increasing own generation volumes from customer-operated photovoltaic equipment as well.
Also, prices for electricity and energy carriers stabilized again at substantially lower levels as compared to the historic peaks we have seen in the previous year. Framework conditions for renewable generation were favorable. Wind conditions improved year-on-year, but they're slightly below average. Water flows were above the long
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