MVV raises profit by 8%, to keep dividend stable (updated)

MVV Energie AG

14/12/2022 09:32

(Adds detail from CEO speech)
       FRANKFURT, Dec 14 (Reuters) - German regional utility
MVV Energie  MVVGn.DE  on Wednesday posted an 8% rise in annual
profit and proposed a stable dividend from 2021, and said it
expects to keep earnings at a similar level next year.
    MVV, in which Mitsubishi UFJ Financial Group's  8306.T 
First Sentier Investors owns a 45.1% stake, said it planned to
pay shareholders a dividend of 1.05 euros ($1.12) per share for
2022. 
    Adjusted earnings before interest and tax (EBIT) rose to 298
million euros in the utility's fiscal year to September from 275
million euros a year earlier, not counting in a one-off disposal
gain of 55 million euros, it said.
    It cited the successful direct marketing of renewable energy
in its trading division and positive developments of plants for
waste recycling and biomass generation and of those in MVV's own
portfolio of renewable generation.
    The forecast for unchanged operating earnings at the firm,
which is majority-owned by the city of Mannheim where it is
based, in 2022/23 also excludes one-off items, it stressed.
    Adjusted sales grew year-on-year by 2% to just under 4.2
billion euros in the 2022 financial year.
        A consistent strategy for rebalancing the firm's climate
impact and on a business model based on complementary activities
made MVV resilient, Chief Executive Georg Mueller said.
  
        In November, MVV received a "net zero" compatible
certification from climate organisation Science Based Targets
Initiative(SBTi) as the first German energy company, confirming
its seriousness about transitioning to green heat, electricity
and customer solutions, he said.
  
        An increase in MVV's balance sheet resulted from hedge
transactions requiring recognition under IFRS 9 accounting rules
and was entirely due to higher energy prices, and should not be
used to try and interpret MVV's operating business, Mueller
noted.
  
        It grew to 24 billion euros after 15 billion a year
earlier.
  
        With the already apparent fall in prices since October,
these items would decrease again, he said.
  
    ($1 = 0.9487 euros)
($1 = 0.9391 euros)
 (Reporting by Vera Eckert, editing by Maria Sheahan)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))