MVV Energie cuts profit forecast on UK plant delays (updated)

MVV Energie AG

15/05/2015 07:18

* Now aims for 2014/2015 adj EBIT of about 170 mln eur 
    * Previous forecast was for adj EBIT of 180-195 mln eur 
    * Operational delays at two new units in Britain main reason 
 
 (Adds details on plants, bullets) 
    FRANKFURT, May 15 (Reuters) - German local utility MVV 
Energie  MVVGn.DE  on Friday cut its full-year profit forecast, 
blaming operational delays at its new power plants in Britain. 
    For the fiscal year 2014/2015, which starts in October, MVV 
now expects adjusted earnings before interest and tax (EBIT) to 
be roughly stable compared to the 170 million euros ($194 
million) reached in the previous year, the company said. 
    MVV had originally aimed for adjusted EBIT of 180-195 
million euros, but it had already said in February that this 
goal had become more challenging.  ID:nL5N0VM10E  
    The company has shouldered nearly 400 million euros of 
investments to build an energy from waste plant in Plymouth and 
a biomass site at Ridham Dock, hoping that this will help end a 
decline in profits.  ID:nL6N0PF36I  
    However, construction delays at the Plymouth site as well as 
boiler damage at Ridham Dock have delayed their full operation, 
leading to the reduced full-year outlook, MVV said. 
    MVV, Germany's seventh-largest utility by sales, has pledged 
to invest about 3 billion euros by 2020 in new growth areas, 
plants and grids, having earmarked more than 2 billion already. 
    With a market value of about 1.53 billion euros, MVV is 50.1 
percent-owned by the city of Mannheim, while Cologne-based 
utility RheinEnergie  RHEI.UL  holds 16.3 percent. France's GDF 
Suez  GSZ.PA  also has a 6.3 percent stake. 
     
($1 = 0.8777 euros) 
     
 
 (Reporting by Christoph Steitz; editing by Thomas Atkins) 
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; 
Reuters Messaging: 
christoph.steitz.thomsonreuters.com@reuters.net)) 
 
Keywords: MVV ENERGIE RESULTS/