MVV Energie CZ group reported stable results, parent company MVV Energie AG acquired a new shareholder
The energy group MVV Energie CZ increased revenues in the fiscal year 2018–2019 compared to the previous period from CZK 1.984 billion to CZK 2.031 billion. Operating profit decreased by 6.3% year-on-year to CZK 305 million. However, the company's overall financial stability increased. A minority share of 45.1% in the parent company MVV Energie AG, based in Mannheim, Germany, it has been acquired by the First State Investments pension fund.
The main business activity of the MVV Energie CZ group is the production and sale of heat and electricity. Heat sales in the fiscal year 2018–2019 amounted to 665 thousand MWh, which is 2.1% less than in the previous period. Electricity sales fell by 13.5% to 148,000 MWh. The reason for lower heat sales was another mild winter. However, revenues from the sale of electricity increased year-on-year by 4.8% due to rising electricity prices on the stock market.
The achieved economic results were positive in terms of, for example growth in consolidated assets, equity capital and a decline in the debt position in relation to banks. According to Jaroslav Pantůček, Member of the Board of Directors of MVV Energie CZ a.s., these and other indicators contribute to further strengthening the financial stability of the company.
This, according to Chairman of the Board Jörg Lüdorf, is essential for the further development of the group and for its long-term investment plan aimed at greening and decarbonising the operation of all heating plants.
„We believe that the modernization of heating plants can make a significant contribution to reducing greenhouse gas emissions and help the Czech Republic achieve its objectives in the fight against global warming. In addition to natural gas, we plan to use other ecological fuels, for example, in Děčín, we are the first in the Czech Republic to use a geothermal source; in Pelhřimov we burn biomass, and we also offer cities the construction of tailor-made municipal waste-to-energy facilities with connection to central heating systems," says Jörg Lüdorf.
MVV Energie CZ a.s. is 100% owned by the German company MVV Energie AG based in Mannheim. Its majority owner is the City of Mannheim; the former minority owners were the energy companies EnBW and RheinEnergie. The contract for the sale of their shares, totalling 45.1%, was signed today in Mannheim. The new minority owner is the significant international pension fund First State Investments, which focuses on infrastructure projects and investments in the construction of renewable energy sources.
The financial results of MVV Energie CZ group and the major events of the year can be found in the Annual Report 2018–2019 under Financial results.