FRANKFURT (Reuters) -German regional utility MVV Energie on Thursday reported a halving of annual profit but proposed a dividend increase of 9% for its 2024 fiscal year ended in September.
MVV, based in Mannheim where the city owns a 50.1% stake in the company, said it planned to raise its dividend to 1.25 euros per share for 2024 from 1.15 euros the previous year.
MVV has long had certified targets to transition to low-carbon heat as well as electricity-, waste- and biomass-based energy products for industry and household customers, ahead of some bigger sector peers.
Adjusted earnings before interest and tax (EBIT) amounted to 426 million euros ($447.98 million), down from 880 million euros a year earlier, said MVV, in which Mitsubishi UFJ Financial Group’s First Sentier Investors owns a 45.1% stake.
“The exceptional financial year 2023 was characterised by non-repeatable one-off effects, in particular by disposal proceeds from asset sales and by an exceptional wholesale price-related development,” CEO Georg Mueller said.
Operating earnings in 2025 will likely be in a range of 350 to 400 million euros, he said.
“Overall, we assume that our broad-based business model will also give us stability in the 2025 financial year,” he said, adding that financial metrics were sound.
MVV’s adjusted turnover was down 4% at 7.2 billion euros as achievable power and gas prices fell, factors that were partially compensated by higher volume sales.
MVV said it will continue with efforts to digitise distribution grids, and to change its production portfolio to wind and solar.
Mueller urged German policymakers to create better legal and financial frameworks for carbon management, power station capacity, regional links to a planned national hydrogen core network, a roll-out of smart power meters, and speed in boosting geothermal energy.
“That would improve financing conditions,” he said.
($1 = 0.9509 euros)
(Reporting by Vera Eckert, editing by Rachel More and XXX)
