Network Infrastructure Austria
The Network Infrastructure Austria Segment covers the operation of the regional electricity and natural gas networks as well as the cable TV and telecommunications networks in Lower Austria and Burgenland. This segment also includes corporate services, above all in connection with construction, which are reported as internal revenue.
Income from investments includes a distribution from the R-138 fund to Netz Niederösterreich GmbH and the shares held by Netz Niederösterreich GmbH in AGGM Austrian Gas Grid Management AG.
Highlights 2013/14
- Stable electricity distribution volumes
- Decline in natural gas distribution volumes due to the mild winter
- Increased investments in the Lower Austrian network infrastructure
- Adjustment of network tariffs as of 1 January 2014 - Electricity: –9.0% - Natural gas: +7.7%
| Key indicators – Network Infrastructure Austria | 2013/14 | 2012/131) | Change nominal
in %
| ||||||
|---|---|---|---|---|---|---|---|---|---|
| Key energy business indicators | GWh | ||||||||
| Network distribution volumes | |||||||||
| Electricity | 7,874 | 7,885 | -11 | -0.1 | |||||
| Natural gas | 14,131 | 15,232 | -1,101 | -7.2 | |||||
| Key financial indicators | EURm | ||||||||
| External revenue | 430.9 | 435.8 | -4.8 | -1.1 | |||||
| Internal revenue | 53.7 | 61.9 | -8.2 | -13.2 | |||||
| Total revenue | 484.6 | 497.6 | -13.0 | -2.6 | |||||
| Operating expenses | -297.8 | -285.0 | -12.8 | -4.5 | |||||
| Share of results from equity accounted investees with operational nature | 0.0 | 0.0 | 0.0 | - | |||||
| EBITDA | 186.8 | 212.6 | -25.8 | -12.1 | |||||
| Depreciation and amortisation including effects from impairment tests | -103.6 | -100.7 | -2.9 | -2.9 | |||||
| Results from operating activities (EBIT) | 83.3 | 112.0 | -28.7 | -25.6 | |||||
| Financial results | -19.8 | -19.1 | -0.7 | -3.6 | |||||
| Profit before income tax | 63.4 | 92.8 | -29.4 | -31.7 | |||||
| Total assets | 1,787.7 | 1,786.8 | 0.9 | 0.1 | |||||
| Total liabilities | 1,298.2 | 1,266.2 | 32.0 | 2.5 | |||||
| Investments2) | 186.8 | 176.4 | 10.4 | 5.9 | |||||
| 1) The figures for the prior year were adjusted retrospectively according to IAS 8 (see note 2. Reporting according to IFRS). 2) In intangible assets and property, plant and equipment | |||||||||
Development of network distribution volumes
Network tariffs for electricity and natural gas are adjusted annually on 1 January by the E-Control Commission in accordance with the incentive regulatory system. As of 1 January 2014, the natural gas network tariffs were raised by an average of 7.7% (1 January 2013: reduction of 2.5%) and electricity network tariffs were reduced by an average of 9.0% (1 January 2013: reduction of 0.4%). Electricity network distribution volumes nearly matched the previous year at 7,874 GWh in 2013/14. The higher demand for electricity by industrial customers was able to offset the temperature-related decline in the household customer segment, but the mild winter and the resulting weaker demand for natural gas in the household customer segment led to a decline of 1,101 GWh, or 7.2%, in natural gas distribution volumes to 14,131 GWh.
Revenue development
The Network Infrastructure Austria Segment generated revenue of EUR 484.6m in 2013/14, a decline of EUR 13.0m, or 2.6%, compared with the previous year. This development resulted primarily from lower electricity and natural gas network revenue, which was not fully offset by the positive development of revenue from cable TV and telecommunications services and other revenue. Electricity network distribution revenue declined as a result of the tariff reduction, while the higher temperatures led to a reduction in natural gas network distribution revenue. Other revenue increased year-on-year based on an increase in the invoiced customer projects as of 30 September 2014. Revenue development in the cable TV and telecommunications business was positive during the reporting year, with a slight year-on-year increase of EUR 1.1m, or 2.0%, to EUR 54.1m.
Operating expenses and operating results
Operating expenses rose by EUR 12.8m, or 4.5%, to EUR 297.8m. This increase resulted primarily from changes in the volume of invoiced customer projects as of the balance sheet date. This effect was only partly offset by lower procurement costs for external energy to compensate network losses. EBITDA equalled EUR 186.8m, a decline of EUR 25.8m or 12.1% below the previous year. Including the year-on-year increase of EUR 2.9m, or 2.9%, in depreciation and amortisation to EUR 103.6m which resulted from the continuous investments in the network infrastructure, results from operating activities (EBIT) amounted to EUR 83.3m. This represents a decline of EUR 28.7m, or 25.6%, in EBIT.
Financial results and profit before tax
Financial results equalled EUR –19.8m, which is EUR 0.7m, or 3.6%, lower than the previous year. Profit before tax in 2013/14 totalled EUR 63.4m, which represents a year-on-year decline of EUR 29.4m, or 31.7%.
Investments
In connection with EVN’s investment focus on supply security in Lower Austria, capital expenditure was increased by EUR 10.4m, or 5.9%, to EUR 186.8m during the reporting year. Expenditures in the electricity network focused on infrastructure development to accommodate the feed-in from the expansion of generation from renewable energy sources in the network area. The 110 kV network was also expanded in the 2013/14 financial year to transport the increased feed-in of electricity generated by windpower. Other investment projects involved the medium- and low-voltage networks and were designed to improve the feed-in from decentralised photovoltaic equipment. Investments in the natural gas network included the completion of the 143 km Westschiene natural gas transport pipeline, whereby the last section was filled with natural gas during the reporting year. This pipeline creates a direct connection to the natural gas storage facilities operated by Rohöl-Aufsuchungs AG in Upper Austria.
Outlook
Earnings in the Network Infrastructure Austria Segment are significantly influenced by the network tariffs and the weather-related demand for electricity and natural gas. The network tariff adjustments that took effect on 1 January 2014 will also be applied in the first quarter of the 2014/15 financial year. The cable TV and telecommunications business should record constant earnings. Depending on the weather, the Network Infrastructure Austria Segment is expected to generate stable results for the coming year.
