MVV Energie sees profit, sales stagnating in 2018/19

MVV Energie AG

11/12/2018 09:05

FRANKFURT, Dec 11 (Reuters) - German regional utility MVV
Energie  MVVGn.DE  expects sales and operating profit to
stagnate in 2018/19 after four years of earnings growth, it said
on Tuesday.
    The company, which focuses on heat provision, renewable
energy and related services, faces less regulatory certainty,
resulting in more volatile results going forward, Chief
Executive Georg Mueller said.
    "This is a new environment that we are having to deal with,"
he said, citing changing auction procedures for wind projects
and varying regulations for combined heat and power plants.
    For the fiscal year that ended Sept. 30, 2018, MVV posted a
two percent rise in adjusted earnings before interest and tax
(EBIT) to 228 million euros ($259 million) on sales of 3.9
billion euros, down three percent.
    MVV is to raise investments in 2018/19 in existing projects
such as a gas-to-heat plant in Kiel and maintenance and upgrades
to its district heat grids, after spending 290 million euros in
2017/18, in increase of 50 percent, Mueller said.
    New projects include a waste-to-heat plant in Scottish
Dundee, linking a heat plant in Mannheim to nearby grids and
taking over an organic waste plant in Dresden.
    
($1 = 0.8790 euros)

 (Reporting by Vera Eckert; Editing by Christoph Steitz)
 ((vera.eckert@thomsonreuters.com; +49 69 7565 1228; Reuters
Messaging: vera.eckert.thomsonreuters.com@reuters.net))