Waste Management Segment

Waste Management Segment overview

 

 

Unit

 

1st HY
2021/2022

 

1st HY
2020/2021

 

Change

Total sales

 

EUR mill.

 

139.7

 

122.8

 

13.8%

EBIT

 

EUR mill.

 

26.9

 

20.4

 

31.9%

Investments in property, plant and equipment and intangible assets

 

EUR mill.

 

4.9

 

6.1

 

-19.7%

Workforce (on average)

 

FTE

 

825

 

819

 

0.7%

Total waste volume handled

 

1,000 t

 

791

 

844

 

-6.3%

Incinerated waste volume

 

1,000 t

 

297

 

285

 

4.2%

Economic environment for the waste management sector

The economic environment for providing traditional waste management services was again favourable in the first half of 2021/2022. High volumes of waste requiring incineration were still available on the market, which meant that waste incineration plants throughout Europe continued to be well utilised.

The high price level for the recycling materials recovered paper/cardboard and metals increased significantly compared with the first half of 2020/2021. Following a previous low-price phase for paper and metals, a clear trend reversal had already begun in the previous year.

Among other things, the amendment to the circular economy package under the Waste Management Act (AWG) – published in December 2021 – mandates that, starting on 1 January 2023, waste transportation of volumes above 10 tons over distances of more than 300 kilometres must be effected by rail or similarly climate-friendly means of transport, with the kilometre threshold due to drop to 100 kilometres by 1 January 2026. Although the amendment offers opportunities, such as relieving the tight situation in logistics services provoked by a lack of heavy goods vehicle drivers, it also entails economic risks that cannot be quantified with a sufficient degree of accuracy at the present time.

The fourth COVID-19 lockdown imposed in November 2021 was shorter in terms of time span than the lockdowns imposed in the first half of the 2020/2021 fiscal year. However, due to the high number of cases, more employees were forced to isolate, making it even more difficult and challenging to maintain system-relevant waste disposal services than in the first half of 2020/2021.

Business development in the Waste Management Segment

Sales revenues in the Waste Management Segment amounted to EUR 139.7 million in the first half of 2021/2022 and were therefore 13.8% above the previous year's level of EUR 122.8 million. EBIT rose from EUR 20.4 million in the first half of 2020/2021 to EUR 26.9 million in the reporting period.

The increase in earnings was attributable on the one hand to good market conditions – primarily for recovered paper/cardboard and metal recycling materials – and on the other to the high electricity and heat revenues for the volumes decoupled from the waste incineration plant Welser Abfallverwertung (WAV). The previous year's EBIT included, among other things, a reversal of impairment for incineration plants of EUR 3.5 million.

Utilisation of the waste incineration plants

Incinerated waste volume

in 1,000 t

Incinerated waste (bar chart)

The two waste incineration plants in Wels and Lenzing achieved a throughput of 297,332 t in the reporting period (previous year 285,442 t); this is equivalent to an increase of 4.2%. While the absolute throughput volumes of the Lenzing waste incineration plant declined due to unscheduled downtime, the change in the timing of the inspection interval at the Wels plant, which was no longer carried out across fiscal years for the first time in the 2021/2022 fiscal year resulted in an increase in volumes in a comparison of the two six-month periods. Throughput volumes per operating hour were also slightly higher than the previous year.

At the Lenzing waste incineration plant, the annual inspection took place in the period 12 March 2022 to 15 April 2022. In Wels, the inspections of the two incineration lines will not take place until the second half of the fiscal year, as planned.

In the reporting period, the waste incineration plant in Wels distributed 163 GWh of heat (previous year: 158 GWh) to the district heating network of the town of Wels and to one other key account customer. Electricity procurement totalled 100 GWh (previous year: 91 GWh).

The treatment plant for hazardous waste in Steyr was again very well utilised in the reporting period.

Total waste volume handled

in 1,000 t

Total waste volume handled (bar chart)

Compared with the previous year, there was a downturn in the total volume handled in Austria and South Tyrol to 790,774 t (first half of 2020/2021: 843,713 t), which is attributable to a decrease in waste wood, among other things.

Strategically anchored cost management was consistently pursued in the reporting period and the ongoing optimisation projects were further implemented.

The reconstruction work relating to the relocation of the company headquarters from Hörsching to the WAV site in Wels has been concluded. The relocation of the company headquarters and the accompanying relocation work were completed in the first half of the 2021/2022 fiscal year.

At the Wels site, intensive work was carried out on further expanding district heating distribution from WAV. The contractually agreed reorganisation of the cooperation between Energie AG and eww ag, with a view to being able to supply the city of Wels and the neighbouring areas even more efficiently with district heating entered the implementation phase on 1 May 2022. In the first half of 2021/2022, activities focused on the technical conversion and installation work required for this and on preparing for the organisational changes.

The investigations throughout Austria in the waste management industry initiated by the Federal Competition Authority (BWB) are still in progress. Energie AG Oberösterreich Umwelt Service GmbH (Umwelt Service GmbH) is actively involved to help clarify the facts and has assured its full cooperation with BWB.

The economic environment in South Tyrol has seen an improvement since the beginning of the 2021/2022 fiscal year. However, despite general economic growth and what are largely stable economic parameters, the recovery of the individual sectors has not progressed uniformly. One of the major challenges in the first half of 2021/2022 for the waste management operation at the Neumarkt site was massive competitive pressure in acquiring paper volumes.

The general conditions for drinking water supply and waste water disposal in Austria were largely stable during the reporting period. At WDL-WasserdienstleistungsGmbH, the main focus was on maintaining the secure supply of drinking water and further developing the services offered. One success story in the first half of 2021/2022 was the extension of an important contract with a key account customer in the sewer service sector.

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