MVV Energie plans biggest investment in Germany (updated)

MVV Energie AG

13/12/2016 10:54

* To spend 290 mln euros on heat and power plant in Kiel 
    * Core earnings up 22 pct to 213 mln euros in 2015-16 
    * Expects slight increase in sales, earnings in 2017 
 
 (Recasts, adds CEO quote, details) 
    FRANKFURT, Dec 13 (Reuters) - MVV Energie  MVVGn.DE  plans 
to spend 290 million euros ($308 million) building a heat and 
power plant, the German utility's biggest single investment so 
far as it increases its generating capacity. 
    The gas-powered combined heat and power plant in the 
northern German city of Kiel will start operating in late 2018, 
MVV said on Tuesday, a project which is part of its plan to 
spend 3 billion euros by the middle of the next decade. 
    "We have additional ideas (for where to invest)," Chief 
Executive Georg Mueller said, adding that MVV could also spend 
more abroad, including in Britain where it has built a biomass 
plant in Ridham Dock and an energy-from-waste plant in Plymouth. 
    The utility has also increased its onshore wind power 
capacity to more than 200 megawatts, Mueller said, adding that 
it was still too early to think about investing in offshore wind 
projects as they carry more risks. 
    MVV, which is majority-owned by the city of Mannheim and 
counts France Engie  ENGIE.PA  among its shareholders, expects a 
slight increase in operating profit next year thanks to its 
investment in biomass and wind power capacity. 
    One of the few German utilities with rising profits, MVV's 
adjusted earnings before interest and tax (EBIT) rose 22 percent 
to 213 million euros in its 2015-16 financial year. Sales 
increased 19 percent to 4.1 billion euros. 
   ($1 = 0.9414 euros) 
 
 (Reporting by Christoph Steitz and Vera Eckert; editing by 
David Clarke) 
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; 
Reuters Messaging: 
christoph.steitz.thomsonreuters.com@reuters.net)) 
 
Keywords: MVV ENERGIE RESULTS/