German utility MVV Energie to invest 3 bln euros in growth

MVV Energie AG

14/08/2015 08:31

* Investment to be made over the next 10 years 
    * Adj EBIT gains on grid sales, network fees 
    * Keeps outlook for 170 mln eur of adj EBIT in 2015 
 
    FRANKFURT, Aug 14 (Reuters) - Utility MVV Energie  MVVGn.DE  
announced plans to invest 3 billion euros ($3.34 billion) over 
the next decade while larger German peers curb spending, 
suffering from their higher exposure to low wholesale power 
prices. 
    The investments follow 2.3 billion euros it has spent since 
2009, in contrast to E.ON  EONGn.DE  and RWE  RWEG.DE  which 
have cut spending. 
    Most of the investments will be made in renewables and 
energy efficiency, the company said on Friday, following the 
release of nine-month results which showed an 8 percent increase 
in adjusted earnings before interest and tax (EBIT). 
    A small player in Germany's energy sector, MVV owns less 
fossil-fuel-based power plants than its peers and has built up 
capacity in renewables, which account for more than a third of 
the group's generation capacity. 
    MVV kept its forecast for adjusted EBIT of about 170 million 
euros for the current financial year, which ends September 30. 
    MVV has a market value of 1.45 billion euros and its owners 
include the city of Mannheim, Cologne-based utility RheinEnergie 
 RHEI.UL , France's GDF Suez  GSZ.PA  Germany's third largest 
utility EnBW  EBKG.DE .  
    Just 4.8 percent is freely traded on the stock exchange. 
    ($1 = 0.8973 euros) 
 
 (Reporting by Christoph Steitz; editing by Jason Neely) 
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; 
Reuters Messaging: 
christoph.steitz.thomsonreuters.com@reuters.net)) 
 
Keywords: MVV ENERGIE INVESTMENT/