Fire in the plastics sorting facility

On 10 October 2019, an explosion in the plastics sorting facility in Hörsching (Waste Management Segment, Austria) caused a major fire. The fire destroyed most of the building and technical equipment, which lead to the recognition of an impairment in an amount of EUR 2.4 million in the first half of 2019/2020. The insurers are expected to confirm insurance coverage in the second half of the fiscal year.

COVID-19 pandemic

The implications of the COVID-19 pandemic include lower prices on the energy markets, an expected decline in future energy supplies, and a higher planning uncertainty for the Consolidated Financial Statements as of 31 March 2020. A gradual reversal of restrictions and first signs of economic recovery are expected in the second half of the fiscal year. The economic environment is expected to return to normal over the two following years.

In the Energy Segment, electricity volumes for supply contracts were procured in advance. From today's perspective, it is expected that partial electricity volumes will be without customer demand and will therefore have to be marketed otherwise. Due to the recent decline of prices on the electricity market, a provision in an amount of EUR 1.0 million was formed.

The COVID-19 pandemic triggered an adjustment of expected credit losses, which resulted in the recognition of an additional impairment of EUR 0.6 million.

Other disclosures

Weather-related fluctuations in revenues and earnings during the fiscal year are particularly noticeable in electricity generation as well as electricity and gas sales. For the Energy Segment, this means that the earnings in the first half year are frequently higher than in the second half year. Due to subdued construction activity in the autumn and winter months, investment in property, plant and equipment is generally lower in the first half year than in the second. In the first six months of the year, the hydro coefficient was 1.08 (previous year: 1.13).

In the first six months of the 2019/2020 fiscal year, additions to property plant and equipment amounted to EUR 73.1 million (previous year: EUR 73.1 million), while the carrying amount of disposals was EUR 2.4 million (previous year: EUR 8.5 million). Obligations for the acquisition of property, plant and equipment amount to EUR 57.1 million (previous year: EUR 50.5 million).

Registered bonds with a volume of EUR 100.0 million, a term of 20 years and an interest rate of 1.25% were issued in the reporting period.

The first six months of the 2019/2020 fiscal year saw EUR 53.2 million (previous year: EUR 78.1 million) in dividends distributed to the shareholders of Energie AG Oberösterreich.

Contingent liabilities amounted to EUR 3.6 million (previous year: EUR 6.5 million).

Linz, 29 May 2020

The Management Board of Energie AG Oberösterreich

Chief Executive Officer
DDr. Werner Steinecker MBA
Chairman of the Management Board

Dr. Andreas Kolar

Member of the Management Board

Dipl.-Ing. Stefan Stallinger MBA

Member of the Management Board