The economic results of the MVV energy group remains stable – investments in greening grew
MVV Energie CZ energy group, among the leading energy producers and distributors in the Czech Republic, reported stable economic results in the financial year 2019–2020, despite the turbulent times. The coronavirus pandemic resulted in higher operating costs. Thanks to the measures taken, however, it managed to supply heat, electricity and water even in the most demanding moments in all cities and municipalities where the MVV group operates. The monitored period was also marked by the preparation or implementation of a number of ecological projects and new services. The Group has been investing in fossil-free technologies and renewable energy sources (RES) for several years now.
The total revenues of the MVV group for 2019–2020 reached almost CZK 2.1 billion, and increased by 1.5% compared to the previous fiscal period. In the area of sales, there was a slight decrease in heat sales (1.8%) which was compensated by higher electricity sales (13% up compared to the previous period). The Group's operating profit reached the level of almost CZK 307 million and its EBITDA CZK 571 million.
The emphasis on RES and related services is evidenced by the results of the Energy Services Division, focused on EPC – Energy Performance Contracting projects. The monitored period 2019–2020 was its most successful in the last 20 years. The division signed contracts amounting to almost 90 million crowns. Customers, including the Pardubice or Ústí nad Labem regions or the Jan Evangelista Purkyně University in Ústí nad Labem, will receive savings of 125 million in the coming years.
"We are aware that revenues from the sale of energy from conventional sources are on a downward trajectory. Therefore, our energy group has already invested in modern energy: from realized and guaranteed savings in building consumption, through more efficient distribution systems and decarbonisation of heating plants to projects based on purely renewable sources," says Jörg Lüdorf, explaining the emphasis on new services and products.
MVV fulfills the vision of modern energy in about forty decarbonization or greening projects. In the monitored period alone, it invested almost 280 million crowns into these.
In close cooperation with the management of towns and municipalities, dozens of other investments are under preparation by the MVV group, with a significant positive impact on the environment and the health of the population. The project for the use of non-recyclable waste is being considered in Děčín in combination with the smart city platform. In Uherské Hradiště, a transition from coal to another fuel mix is already being sought, with the active cooperation of the Institute of Process Engineering, Faculty of Mechanical Engineering, Brno University of Technology.
Extensive modernization also awaits the heating plant in Litoměřice, where the involvement of geothermal or solar energy is being considered. In Liberec, the subsidiary, together with the city management, is planning the next stage of replacing steam pipelines with hot water pipelines – GreenNet II.
Innovations permeate the day-to-day operations of MVV group companies and customers' lives. These steps move MVV closer to the declared commitment to replace the currently 16% share of coal in owned heating plants and other energy facilities by 2030. Already, climate-neutral energy sources based on municipal waste, geothermal energy and biomass make up almost 30% of the fuel mix.
MVV Energie CZ group consolidated indicators CZ 2019–2020 (in thousands CZK)
|Equity (including minority interests)||2,974,891|
|Earnings before interest and taxes (EBIT)||306,819|
The financial results of MVV Energie CZ group and the major events of the year can be found in the Annual Report 2019–2020.