EVN faces massive losses from Moscow

EVN faces massive losses from Moscow
Photo: EVN
Austrian energy provider EVN has announced losses of nearly €300 million for the 2013/2014 financial year.

The Lower Austria-based listed company gave its investors an unpleasant surprise on Thursday with a renewed profit warning.  This is primarily due to a €190 million loss from an investment in a waste incineration plant in Moscow.

Early in July, EVN had already issued a profit warning related to electricity price fluctuations in two markets where it is active, Bulgaria and Macedonia, leading to losses of almost €261 million.  Combining those losses with the Moscow operation completely wipes out the net profit of €115 million from its Austrian operations last year.

As many of the write-downs are non-cash, they should have no effect on the expected dividend payments, the company emphasized .

Electricity customers in Lower Austria are not affected by the profit warning, company spokesman Stefan Zach said. EVN will reduce, as announced, the price of electricity in Lower Austria by ten percent on October 1st.

Furthermore, EVN remains committed to the investment of one billion euros in the security of supply in Lower Austria over the next four years.

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