MVV Energie sees higher profits as renewables pay off (updated)

MVV Energie AG

10/12/2015 10:25

* Sees adjusted EBIT up about 15 pct in 2015/2016 
    * Adj EBIT up 3 pct to 175 mln euros in 2014/2015 
    * Company remains in "savings mode" -CEO 
 
 (Adds CEO comments, details on results) 
    FRANKFURT, Dec 10 (Reuters) - German local utility MVV 
Energie  MVVGn.DE  expects its operating profit to rise by about 
15 percent in its 2015/2016 financial year, banking on 
investments in wind power and biomass plants that have boosted 
results in the past year. 
    The company, one of the few German utilities to predict 
rising earnings in the coming year, still remains in "savings 
mode", Chief Executive Georg Mueller said on Thursday, citing 
weak power prices that have hit larger peers RWE  RWEG.DE , E.ON 
 EONGn.DE  and EnBW  EBKG.DE . 
    "We have more money than ideas, but every investment has to 
pay off," Mueller said, confirming the company planned to spend 
3 billion euros ($3.3 billion) in renewables and energy 
efficiency over the next decade. 
    MVV, Germany's seventh-largest utility by sales, also said  
adjusted earnings before interest and tax (EBIT) rose 3 percent 
to 175 million euros in the 2014/2015 year ended in September. 
    This was partly due to the group's energy-from-waste plant 
in Plymouth in southwest England as well as its biomass plant in 
Ridham Dock in the southeast, both of which started operations 
in the past year. 
    With a market value of about 1.36 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 = 0.9096 euros) 
 
 (Reporting by Christoph Steitz and Vera Eckert; Editing by 
Maria Sheahan and David Evans) 
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; 
Reuters Messaging: 
christoph.steitz.thomsonreuters.com@reuters.net)) 
 
Keywords: MVV ENERGIE RESULTS/