MVV Energie profit aim more challenging as mild winter bites (updated)

MVV Energie AG

12/02/2015 07:24

* Says adj EBIT target has become "more ambitious" 
    * Q1 adj EBIT, adj net income both down 16 pct 
    * Points to construction delays at Plymouth plant 
 
 (Recasts, adds quotes, context) 
    FRANKFURT, Feb 12 (Reuters) - German utility MVV Energie 
 MVVGn.DE , Germany's seventh-largest utility by sales, said its 
full-year profit target had become more challenging, following 
mild temperatures that curbed energy demand and hit the group's 
first-quarter earnings. 
    "This year's mild winter may be good news for private 
households, but it has certainly left its mark on German energy 
suppliers," the company said in a statement on Thursday. 
    Mild temperatures have hit utilities across Europe, 
exacerbating a structural crisis that has seen renewable energy 
sources replace conventional coal and gas-fired plants, 
triggering billions of writedowns on loss-making power units. 
    The company in December had guided for adjusted earnings 
before interest and tax (EBIT) of 180-195 million euros 
($204-221 million) in the fiscal year 2014/2015, which starts in 
October, up from 173 million in the previous year. 
    "This target is now more ambitious," Chief Executive Georg 
Mueller said in the statement. 
    According to Thomson Reuters data, EBIT is expected to reach 
187 million euros, the mid-point of the forecast. 
    MVV also said its waste-fired combined heat and power plant 
in Plymouth, Britain, would start operations later than planned, 
citing construction delays that it said would also take a toll 
on profits this year. 
    Adjusted EBIT and adjusted net income both fell 16 percent 
in the first quarter to 64 million euros and 32 million, 
respectively. 
    ($1 = 0.8837 euros) 
 
 (Reporting by Christoph Steitz; Editing by Harro ten Wolde and 
Maria Sheahan) 
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; 
Reuters Messaging: 
christoph.steitz.thomsonreuters.com@reuters.net)) 
 
Keywords: MVV ENERGIE RESULTS/