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Energy Trade and Supply

The Energy Trade and Supply Segment is responsible for the trading and sale of electricity and natural gas to end customers, primarily in the Austrian home market and in wholesale markets. The segment’s business activities also include the procurement of electricity, natural gas and other primary energy carriers as well as the production and sale of heat.

The earnings contributions from EVN’s investments in the sales companies EVN Energievertrieb GmbH & Co KG and ENERGIEALLIANZ Austria GmbH are reported under the share of equity accounted investees with operational nature as part of EBITDA.

Highlights 2015/16

  • Energy sales
    - Decline in electricity and natural gas sales volumes
    - Increase in heat sales volumes
  • EBITDA, EBIT and result before income tax negatively influenced by the creation of a provision
Key indicators – Energy Trade and Supply 2015/162014/15
+/-
nominal%
2013/14
Key energy business indicatorsGWh
Electricity 6,4106,804–394–5.86,787
Natural gas 5,0985,241–143–2.75,383
Heat 1,8981,827713.91,806
Key financial indicatorsEURm
External revenue 448.5470.9–22.5–4.8431.5
Internal revenue 15.014.90.10.517.2
Total revenue 463.4485.8–22.4–4.6448.6
Operating expenses –553.8–558.74.90.9–448.5
Share of results from equity accounted
investees with operational nature
 62.170.0–7.9–11.355.2
EBITDA –28.3–2.9–25.455.3
Depreciation and amortisation including
effects from impairment tests
 –17.4–17.70.31.8–16.1
Results from operating activities (EBIT) –45.7–20.6–25.139.2
Financial results –4.7–5.00.36.9–3.0
Result before income tax –50.3–25.6–24.8–96.936.2
Total assets 682.0612.869.211.3509.4
Total liabilities 585.1518.766.412.8409.3
Investments1) 26.022.73.314.732.3

Energy sales volumes

EVN recorded a decline in electricity and natural gas sales volumes during the reporting year: electricity sales volumes fell by 5.8% to 6,410 GWh and natural gas sales volumes by 2.7% to 5,098 GWh. This development resulted, above all, from the intense competition in the business and household customer markets. In contrast, heat sales volumes rose by 3.9% year-on-year to 1,898 GWh due to the expansion of network coverage and higher demand from industrial customers.

Revenue development

Revenue in the Energy Trade and Supply Segment was EUR 22.4m, or 4.6%, lower at EUR 463.4m. This decline was caused primarily by a reduction in natural gas trading activities, a volume-related decrease in the sale of hydropower production and a lower level in wholesale prices. A positive effect was provided by increased revenue from the sale of the electricity generated in the thermal power plants.

Operating expenses

Operating expenses in this segment declined by EUR 4.9m, or 0.9%, to EUR 553.8m. This reduction is attributable primarily to the lower cost of natural gas purchases for trading that accompanied the decline in revenue and lower procurement costs for primary energy. Operating expenses were increased by the creation of a provision for onerous contracts related to the marketing of EVN’s own electricity production.

Results from equity accounted investees

The share of results from equity accounted investees with operational nature fell by EUR 7.9m, or 11.3%, to EUR 62.1m.

Operating results

EBITDA was EUR 25.4m lower year-on-year at EUR –28.3m. Depreciation and amortisation, including the effects of impairment testing, remained roughly at the prior year level in 2015/16. Overall, results from operating activities (EBIT) declined by EUR 25.1m to EUR –45.7m.

Financial results and result before income tax

Financial results improved by EUR 0.3m, or 6.9%, to EUR –4.7m. The result before income tax equalled EUR –50.3m for the reporting year, which represents a decline of EUR 24.8m, or 96.9%.

Investments

Investments in the Energy Trade and Supply Segment rose by EUR 3.3m, or 14.7%, to EUR 26.0m in 2015/16. These expenditures were concentrated in EVN’s heating business, with a focus on the expansion of the district heating networks and the construction of district heating and biomass heating plants.

Outlook

The 2016/17 financial year is expected to bring positive earnings, which, however, could be influenced by price trends on the wholesale markets, the increasing competition and the sale of EVN’s own electricity production.

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