Mild winter sees MVV Energie profits dip

German EfW giant MVV Energie the firm behind two large-scale UK energy-from-waste plants has revealed that profits for the first nine months of 2013/14 have fallen, due to declining waste tonnages and a milder than expected winter.

The firm has published its financial results up to June 30 2014, which show that earnings were down 15% for the first three quarters of 2013/14, reaching 185 million (148 million), compared to 218 million (174 million) for the same period in 2012/13.

MVV Energie is among Germanys largest energy-from-waste and biomass plant operators with an incineration capacity of around 1.6 million tonnes per year as well as seeking to expand into other energy markets include onshore wind turbines and biomethane plants.

In a letter to shareholders sent yesterday (August 14), MVV chief executive Dr Georg Mller wrote: As expected, the difficult conditions in the energy sector in the first nine months of the 2013/14 financial year also took their toll on our earnings. Not only that, the exceptionally mild winter also left its mark. Our operating earnings (adjusted EBIT) reduced by Euro 33 million compared with the previous years period.

Volume

The firm also reported a 2% overall decline in the volume of waste and timber delivered to its plants compared to the previous year, with a total of 1.38 million tonnes of combustible waste treated at MVV Energie Group facilities in the first three quarters of 2013/14, compared to just over 1.4 million the preceding year

But, the firm has pointed to its development of two large scale plants in the UK through its UK subsidiary MVV Environment as an indicator of its long term growth strategy. These include a 245,000 tonnes-per-year capacity combined heat and power incinerator in Plymouth and a 172,000 tonnes-per-year capacity waste wood biomass plant at Ridham Dock.

The Plymouth plant is being developed as a part of a 25-year contract between MVV and the South West Devon Waste Partnership (SWDWP) worth 796 million (see letsrecycle.com story). MVV has invested around 220 million in the project.

Both plants are expected to begin operations in 2015, and MVV has stated that it expects that these will provide a boost to earnings once up and running.