Statement of operations
All key figures and comparative amounts for the current and previous financial years are presented and described in accordance with the adjustments to the scope of consolidation based on IFRS 10 and 11. The results from equity accounted investees with operational nature are reported under results from operating activities (EBIT).
|Condensed consolidated statement of operations||2013/14|
|Other operating income||71.1||95.2||-24.0||-25.2|
|Electricity purchases and primary energy expenses||-1,032.2||-979.0||-53.2||-5.4|
|Cost of materials and services||-251.9||-301.3||49.4||16.4|
|Other operating expenses||-359.0||-170.4||-188.5||-|
|Share of results from equity accounted|
investees with operational nature
|Depreciation and amortisation||-256.0||-237.9||-18.0||-7.6|
|Effects from impairment tests||-269.5||-59.9||-209.6||-|
|Results from operating activities (EBIT)||-341.4||242.2||-583.6||-|
|Result before income tax||-373.3||170.7||-544.0||-|
|Result for the period||-270.5||152.8||-423.3||-|
|thereof result attributable to EVN AG shareholders (Group net result)||-299.0||109.3||-408.3||-|
|thereof result attributable to non-controlling interests||28.5||43.5||-15.0||-34.6|
|Earnings per share in EUR2)||-1.68||0.61||-2.29||-|
|1) The figures for the prior year were adjusted retrospectively according to IAS 8 (see note 2. Reporting according to IFRS).|
2) There is no difference between basic and diluted earnings per share.
Results of operations
Revenue recorded by the EVN Group fell by EUR 131.0m, or 6.2%, to EUR 1,974.8m in 2013/14. The development of revenue was negatively influenced by the mild winter weather as well as earlier tariff decisions in Bulgaria and Macedonia. A further negative effect resulted from a communication by the Bulgarian regulatory authority concerning the repayment of revenue from previous periods. In addition, a decline was recorded in orders processed in the international project business.
The revenue generated outside Austria fell by EUR 172.4m, or 15.0%, to EUR 979.8m. This represents a decline in the share of Group revenue from 54.7% in the previous year to 49.6%.
Other operating income declined by EUR 24.0m, or 25.2%, to EUR 71.1m, above all due to a decrease in work in process.
The cost of electricity purchases from third parties and primary energy expenses were EUR 53.2m, or 5.4%, higher at EUR 1,032.2m. This increase resulted from the commissioning of the Duisburg-Walsum power plant in December 2013, an increase in provisions for onerous contracts related to the marketing of EVN’s own electricity production and higher procurement costs for the EVN companies in Bulgaria and Macedonia due to local tariff decisions.
The revenue decline in the international environmental services business was accompanied by a reduction in the cost of materials and services, which fell by EUR 49.4m, or 16.4%, to EUR 251.9m.
Personnel expenses rose by EUR 7.6m, or 2.5%, to EUR 313.0m, above all due the wage and salary adjustments required by collective bargaining agreements. The average number of employees declined by 131, or 1.8%, to 7,314, whereby the reduction was related to the foreign investments and was achieved through process and organisational optimisation measures.
Other operating expenses rose by EUR 188.5m to EUR 359.0m. This development resulted, above all, from an valuation allowance of EUR 191.4m recognised on a leasing receivable in the fourth quarter of 2013/14 in connection with the thermal waste utilisation plant no. 1 in Moscow. Significant doubts over the realisation of the project made this step necessary. Positive effects included a decline in legal and consulting fees and in valuation allowances on receivables from energy sales, especially in South Eastern Europe.
The share of results from equity accounted investees with operational nature totalled EUR 94.0m and, with a decline of 1.0%, nearly matched the previous year. EBITDA amounted to EUR 184.1m, which is EUR 356.0m, or 65.9%, lower than the previous year.
Depreciation and amortisation rose by EUR 18.0m, or 7.6%, to EUR 256.0m due to the high level of investments in the Lower Austrian network, the expansion of windpower and the commissioning of the Duisburg-Walsum power plant. Impairment testing led to the recognition of impairment losses totalling EUR 269.5m, which represent an increase of EUR 209.6m over the comparable prior year value. The impairment losses recognised during the previous year were related primarily to goodwill and customer bases in Bulgaria und Macedonia, to the sludge treatment plant and other components of the co-generation plant in Ljuberzy, Moscow, and to generation capacity in Austria and Bulgaria. As a result of these impairment losses, EBIT fell to EUR –341.4m.
Financial results amounted to EUR –31.9m and were therefore EUR 39.6m higher than the previous year. This improvement resulted primarily from an increase of EUR 48.0m in income from investments to EUR 45.2m, which was influenced by the absence of the negative prior year effect from the fair value measurement of the Verbund AG shares held by WEEV Beteiligungs GmbH, as well as an increased dividend from Verbund AG in 2013/14. The commissioning of the Duisburg-Walsum power plant led to higher interest expense, as a result of which interest result fell by EUR 7.8m, or 11.9%, to EUR –73.2m despite the current low level of interest rates and a decline in contributions from the international project business.
Profit before income tax for the 2013/14 financial year equalled EUR –373.3m (previous year: EUR 170.7m). Income taxes were positive at EUR 102.8m due to the tax effectiveness of the larger part of earnings. Profit after tax amounted to EUR –270.5m, compared with EUR 152.8m in the previous year.
Group net profit fell to EUR –299.0m (previous year: EUR 109.3m). Earnings per share declined to EUR –1.68 (previous year: EUR 0.61). Since the effects that led to the negative Group net profit were mainly not cash effective, the Executive Board will recommend the distribution of a stable dividend of EUR 0.42 per share for the 2013/14 financial year to the 86th Annual General Meeting (previous year: EUR 0.42). This corresponds to a dividend yield of 4.1%, (previous year: 3.7%) based on the share price of the EVN AG on 30 September 2014 (EUR 10.13).