MVV Energie AG (MVV1), a German utility, said fiscal full-year profit fell 5.8 percent as lower power prices made electricity generation less profitable.
Adjusted earnings before interest and taxes dropped to 210 million euros ($290 million) in the 12 months through September from 223 million euros a year earlier, the Mannheim-based company said today in a statement. MVV previously forecast a decline of about 5 percent.
Wholesale electricity prices in Germany have tumbled, making many power plants unprofitable. The country’s move toward wind and solar energy, which now account for more than 20 percent of generation and take preference on the grid, has forced prices down.
MVV’s executive board will propose a dividend of 90 cents a share, unchanged from a year earlier, the company said. Full-year sales rose 3.8 percent to 4.04 billion euros, beating the 3.97 billion-euro average estimate of four analysts surveyed by Bloomberg.
MVV predicted higher sales for the current fiscal year and said adjusted Ebit will fall to 170 million euros to 185 million euros, before increasing in 2014-15.
The company will be deleted from Germany’s benchmark SDAX index on Dec. 23.
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