The first half of the 2021/2022 fiscal year was characterised by extraordinary general conditions that had a significant impact on the Group activities of Energie AG Oberösterreich. During the Covid-19 pandemic, which has been going on for more than two years now, we saw infection rates hit a high in late autumn, which was again topped at the end of the reporting period and required a return to now established working arrangements in place for crisis situations. As an operator of critical infrastructure, we were able to live up to our particular responsibility towards society by introducing internal measures that go beyond the prescribed level to protect employees, customers and business partners. Doing so has enabled us to provide these services without restrictions since the health crisis began.
The issue of security of supply has also taken centre stage among the general public recently because of the war between Russia and Ukraine. A new level of awareness for the supply of energy has taken hold, not least as a result of the market prices of electricity and gas, which have been seeing unprecedented movements since the beginning of the fiscal year. The upheavals being experienced on the wholesale energy markets were mainly due to the widening gap between the low availability of primary energy sources and the cyclically high demand for electricity and gas. Under these circumstances, not only did energy procurement costs increase for Energie AG Oberösterreich, but trading and sales revenues in the Energy Segment also doubled. It is, however, mainly due to the low water level that the EBIT in this segment came up slightly short of the operating segment result of the reporting period in the previous year.
Overall, Energie AG Oberösterreich recorded an operating result of EUR 169.6 million for the first six months of the fiscal year, representing a year-on-year increase in EBIT of EUR 51.1 million. The most significant contribution in terms of earnings came from the bundling of broadband activities in Upper Austria, which was completed in March 2022 by spinning off Energie AG Oberösterreich’s fibre-to-the-home sector into what is now a joint venture with OÖ Landesholding GmbH. This has created the basis for even more favourable economic conditions for expanding the coverage of fast and reliable internet access in Upper Austria as extensively as possible in the future. The Group’s share in BBOÖ Breitband Oberösterreich GmbH was measured at EUR 37.0 million and was so reflected in the result.
In addition to this one-time effect, the Waste Management and Grid Segments also contributed to the higher operating result in the reporting period. In the Waste Management Segment, favourable market conditions and increased prices for recycling materials, led to an increase in earnings. Sales revenues and earnings of Netz Oberösterreich GmbH rose in a period-on-period comparison due to tariff increases by the regulator as well as higher electricity and gas distribution volumes. There was a sharp increase towards the end of the reporting period in weekly grid access applications for decentralised power generation plants. The Russian invasion of Ukraine is also making itself felt here to a certain extent. The rapidly growing extent to which photovoltaic systems are being integrated into the electricity grid poses major challenges for the employees of the grid company, once again underscoring the urgent need to comprehensively expand existing grid infrastructure at all voltage levels in a timely fashion. The first half of the 2021/2022 fiscal year saw considerable efforts being made to safeguard a reliable electricity supply, including the construction of new substations along with construction work and preparatory measures for 110kV high-voltage projects as part of the Electricity Grid Master Plan Upper Austria. Upgrading and expanding the grid infrastructure will also make a valuable contribution to ensuring the success of the energy transition, which in turn requires a high degree of financial stability.
Thanks to its economic successes and the risk-averse financial policy pursued by it over the past years, Energie AG Oberösterreich will also be able to raise considerable investment sums for sustainable projects in the years to come. This was the conclusion reached by the rating agency Standard & Poor’s in its annual rating review, in which it reaffirmed the excellent credit rating “A, with stable outlook”. In a volatile (industry) environment overshadowed by crises, particular praise was given to the integrated, risk-diversified business model of Energie AG Oberösterreich and, by extension, its resilience to crises.
We firmly believe that it is particularly important to have a sustainable finance policy combined with a comprehensive, long-term approach to stakeholder management in times such as these, forming the basis for future economic success. This is reflected both in the high proportion of local business partners, who contribute to regional value creation and reduce the impact of international supply chain difficulties on businesses and in our forward-looking procurement strategy, which enabled us to offer our existing customers of standard electricity and gas products a price guarantee until the end of the 2022 calendar year in October 2021, thus further cementing our role as a stable and reliable partner. This is also positively reflected in analysis conducted on customer loyalty. We are particularly proud to have been named Austria’s best employer in the recognised cross-industry Trend ranking. Being recognised in this way encourages us to continue our human resources policy and makes us confident that we will be able to meet the upcoming business challenges as a responsible employer despite the general shortage of skilled workers.
Finally, we would like to take this opportunity to express our gratitude to each and every employee of Energie AG Oberösterreich, having mastered these challenges in an exemplary way with their professional and responsible approach.
Linz, 27 May 2022
The Management Board of Energie AG Oberösterreich
Chief Executive Officer
DDr. Werner Steinecker MBA
Chairman of the Management Board
CEO
Dr. Andreas Kolar
Member of the Management Board
CFO
Dipl.-Ing. Stefan Stallinger MBA
Member of the Management Board
COO