Let me now turn the floor over to Stefan Szyszkowitz.
Welcome, everybody, to EVN's Conference Call on the results for the first three quarters of this current financial year. The first nine months of our financial year were influenced by mild temperatures in all three markets, and therefore, low energy demand. We are also still observing changes in customer behavior towards a reduction in energy consumption through energy-saving measures, and increasing own generation volumes from customer-operated photovoltaic equipment as well. Wholesale prices for electricity and energy carriers stabilized again at substantially lower levels as compared to the historic peaks we have seen in the previous year. Framework conditions for renewable generation were favorable. Wind conditions improved year-on-year, but they're slightly below average. Water flows were above the long-term average.
The expansion of our renewable generation capacities is well on track. In June, we completed the repowering of an eight-MW wind park.
The construction of a new 22-MW wind park in Palterndorf-Dobermannsdorf is progressing as planned, and will be completed by the end of this calendar year, and we started a large repowering project in Prellenkirchen, which will increase its capacity from 14 to 48 MW once commissioned in the second half of next year. I confirm our 2030 expansion target for wind, which is 770 MW. Currently, we stand at 478 MW. By the end of this calendar year, we will reach the historic 500 MW milestone. With this, we will reach a scheduled average annual wind generation of 1.3 terawatt-hours. The additional renewable capacities have a positive impact on our share of renewable generation, which was up from 76% to 84% during this reporting period.
I also confirm our total annual investment, which will remain within the level of 700-900 million EUR. Lower Austria also will account for around three quarters of this, which is almost half earmarked for the network infrastructure. Let me now continue with the key financials on the first three quarters. Group's revenue was down by 13.9% year-on-year to 2.5 billion EUR. The main reasons were the decline in wholesale prices, which reduced the revenue from electricity generation in Southeast Europe segment. Other reasons include price and volume effects in the gas network, as well as a reduction in grid network tariffs in Bulgaria, which reflects a regulatory adjustment of the overcompensation for additional costs of covering network losses in the prior year.
In addition, revenue at the international project business also declined year-on-year because they already largely completed wastewater treatment plant in Kuwait. In line with the development of wholesale prices, the cost of electricity purchases from third parties and primary energy expenses were down on a year-on-year. The cost of materials and service also decreased and reflect the development of revenue in the international project business. Personnel expenses increased by 16.8% compared to prior year, which reflects the necessary increase in workforce and adjustments according to the collective bargaining agreements as well. Other operating expenses went up due to the impairment loss on the outstanding receivables for a wastewater project in Montenegro. This impairment loss was already recognized in the first quarter, following the arbitration judgment.
The share of results from equity accounted investees improved to EUR 4.2 million, after -EUR 157.7 million in the previous year. Despite an overall year-on-year improvement in EVN KG, our energy supply business is still under pressure, and EVN KG is reporting a loss. This was partly due to an impairment of natural gas inventories, which were produced in the past as a strategic reserve to ensure supply and security of our customers. Other challenging factors include strong competition, energy savings, and increasing electricity generation from customers' own photovoltaic system. All of these developments made the planning of sales volumes more difficult. In total, group EBITDA amounted to EUR 657.9 million. Scheduled depreciation and amortization increased by 5.4% year-on-year, reflecting our higher investment program.
Hence, group's EBITDA EUR 399.9 million, which means an improvement by 11.3%. Financial results improved to EUR 162.3 million, mainly due to the higher dividend from Verbund and the better performance of our fund for pension obligations. In addition, last year was negatively affected by foreign exchange effect. In total, we generated a solid group net result of EUR 479.6 million in the first nine months of this financial year. Now, let's move on to the next slide, which provides information regarding the group's balance sheet structure. Balance sheet total decreased by 2.7% compared to the financial year-end 2022/23.
Whereas non-current assets were relatively stable in total, with the decline in current assets were caused by a reduction in trade receivables, receivables from EVN KG, from liquidity settlement by EVN Group, and receivables from hedges. Declines were also recorded in cash fund investment and in cash and cash equivalents. As at the end of June, EVN's net debt amounted to EUR 1.1 billion and was below the level as of the end of September 2023. Correspondingly, the gearing ratio stood at 17%, but with the volume of investment, we expect an increase of net debt by the financial year end. Our financial flexibility remains solid, as at the end of June, EVN had contractually committed undrawn credit limits in the amount of EUR 835 million. Our declared goal is to maintain a solid A category ratings in the future.
To achieve such things, we are strictly monitoring the adjusted target ratios of both of our rating agencies. Therefore, we use the net debt to FFO ratio as a KPI to manage our financial performance, investments, and capital structure. Currently, the ratio is about one point four. With core investments over the coming years, the ratio will increase. However, our aim is to keep a net debt to FFO within a range of one point five to two point zero. On the next slide, I will present the development of our segments in more detail. First, the energy segment. Energy demand in this segment was negatively influenced by the mild temperatures. Hence, energy sales volume to end customers dropped year-on-year. This development was intensified by the challenging framework conditions we are currently facing in our supply company, EVN KG.
Increasing competition, as well as energy saving efforts of our customers and their growing own generation from their photovoltaic systems, have further intensified the decline in energy sales. Hence, volume forecasts are becoming more and more difficult. Revenue dropped to EUR 626.7 million. The main factors for this development are, on one hand, lower wholesale prices and the resulting lower variation effect from hedges. On the other hand, the reduced use of the power plant in Theiss. Operating expenses decreased year-on-year by 16.9%, which mainly reflects lower primary energy costs for electricity and heat generation. The earnings contribution from the equity accounted investees amounted to −EUR 107.4 million, after a loss of −EUR 264 million in the previous year. This is mainly resulting from the supply business in EVN KG.
The loss recorded by EVN KG was partly due to an impairment loss of natural gas inventories purchased in the past as a strategic reserve to protect supply security. The impairment incurred equaled EUR 37.3 million at the end of the third quarter. EVN is also a leading provider for e-charging infrastructure. We currently operate about 2,900 charging points. Based on these charging points and roaming agreements with other operators of e-charging stations, we have issued 19,500 e-charging cards. In total, segment EBITDA amounted to minus EUR 19.1 million and EBIT total to minus EUR 39 million. Let us now turn to our generation segment, which has shifted almost entirely to renewable energies over the years.
Electricity generation volumes in this segment increased by 14.3% year to year, due to the rise in renewable generation volumes. The main reasons for this positive development are the year-on-year increase in wind and water flows and the expansion of renewable energy capacity. Volumes from thermal energy sources further declined year-on-year, due to a further reduced use of our Theiss Power Plant by the Austrian network transmission operator for network stabilization. Revenue decreased, despite higher production volumes, by 9.1% to 334.5 million EUR. The main reason for this development were the declining market prices. Operating expenses were year-on-year lower due to the decline in the energy crisis contribution for electricity. This Austrian windfall levy was 10.6 million EUR in the first quarter of our financial year.
Thereafter, in line with the new legal regulation, which became effective in January, no further payments were required. The earnings contribution from the equity accounted investee Verbund in Austria also declined year-on-year due to lower market prices. All in all, EBITDA amounted to EUR 193.6 million. Based on higher scheduled depreciation and amortization because of our investment program in the segment, EBIT stood at EUR 159.3 million. Let's continue with the network segment. The very mild weather conditions and the changing consumer behavior in terms of energy savings on one hand, and increased proportion of prosumers on the other, also impacted our network segment. Because of these developments and the lower use of our Theiss Power Plant for network stabilization, network distribution volumes for electricity and natural gas decreased year-on-year.
Despite the lower distribution volumes, segment revenues increased to EUR 508.5 million due to the higher system network tariffs for electricity, which compensated lower revenue from natural gas. A positive revenue contribution was also recognized by our internet and telecommunication services company. Operating expenses decreased due to a lower upstream network cost because of decreased tariffs. In total, EBITDA was up to EUR 223.68 million. Taking into account higher depreciation amortization due to higher investment level, EBIT totaled 102 million EUR. Let's move on to the Southeast Europe segment. The network sales and energy sales volumes were influenced by contrasting factors. Higher electricity network sales volumes by household and industrial customers were able to offset the effect from the warmer winter temperatures.
Whereas energy sales volume showed a stable development in North Macedonia, with a decline in Bulgaria due to mild temperatures. Revenue decreased to EUR 1 billion due to the downward trend in electricity prices and lower network tariffs in Bulgaria. The latter are used to offset the overcompensation of costs from network loss coverage prior year, in accordance with the regulatory methodology. Corresponding to the development of revenue, operating expenses are lower due to a decrease in cost of third-party electricity purchases and energy carriers. All in all, EBITDA amounted to EUR 162.5 million, and segment EBIT totaled EUR 100.1 million. As a general comment, please note that we benefit in Bulgaria also in the current financial year from lower procurement costs for our network losses due to the decline in market prices as compared to levels reflected in the regulation.
In line with the regulatory methodology, these higher results will be adjusted by lower tariffs in the next financial year. This means that we will have an extraordinary high result in Southeast segment this year, which will be reversed next year, and finally, the environment segment. In our international project business, we are currently working on nine projects. At our project in Kuwait, we reached a peak in the summer of the previous year. The wastewater treatment plant was completed at the end of December, and the test run was successfully finalized. The second part of the project, which relates to the infrastructure of the pipe system, is also about three-fourths complete. I would also like to comment on the status quo of our intentions to deinvest WTE. The focus of EVN Group remains on the core energy business.
Therefore, we are continuing to evaluate additional strategic options for WTE, in line with the investor feedback received from the structured sales process for the complete sale of the WTE that was terminated on the fourth of April, 2024. Against the backdrop of all these developments, revenue in the segment decreased year on year to EUR 296.7 million. This is a result of the advanced project status in Kuwait. Correspondingly, operating expenses declined. In addition, an impairment loss of EUR 22.5 million was recognized on the outstanding receivables for the wastewater project in Montenegro. This impairment loss was already recognized in the first quarter following the arbitration judgment. In total, segment EBITDA dropped to EUR 222.2 million, and EBIT amounted to EUR 4.6 million.
Financial results nearly matched last year's level and stood at -EUR 18.4 million. All in all, result before income tax amounted to -EUR 13.8 million. The next slide shows the development of our group cash flows. Gross cash flow was lower year on year at EUR 890 million, despite the improvement in the result before income tax, as well as higher dividend from equity accounted investees and Verbund. The main driver for this development was the correction in the previous year to the higher negative results from the equity accounted EVN KG. Cash flow from operating activities totaled EUR 829.1 million, reflecting the development of working capital. Please also consider last year's negative effect caused by the liquidity settlement for EVN KG and the related higher capital commitment for working capital.
Cash flow from investing activities amounted to minus EUR 312.8 million. The increasing investment level was compensated by the sale of cash funds. The higher investment was also contrasted by higher construction and network subsidies in the network and heating business. In addition, there was the capital contribution provided by EVN to EVN KG in the previous year. The position, cash flow from financing activities amounted to minus EUR 486.4 million and included scheduled repayments and the dividend payment for the previous financial year. The net change in cash and cash equivalents amounts to 13 million euros. Let's come now to the outlook for this current financial year. After the first nine months of this financial year, I can specify our outlook for this financial year.
We expect group net results to be at the upper part of the previously communicated range of EUR 420 million-EUR 460 million, based on the development of the operating business and under the assumption of a stable regulatory and energy policy environment. The dividend is expected to equal at least EUR 0.82 per share for the current financial year. As already mentioned at the beginning of this presentation, total annual investment will be in the range of EUR 700 million-EUR 900 million. The core areas are investment in network infrastructure, renewable generation, and drinking water supplies. Finally, I would like to invite you to join us on the second of October for our investor webcast, which is entitled EVN: The Future of Energy Transition, Innovation, Mid-Term Targets. Please expect a one-hour webcast, followed by a Q&A.
We will formally introduce our new CFO and the CTO to you. Together with my two new colleagues, we will focus on selected innovation projects, which will demonstrate how EVN successfully is positioning itself in the new business areas we see evolving through the transition of our industry. Furthermore, based on the positive feedback we've received from analysts and investors for our last year's capital markets day, especially with respect to our long-term financial perspective, we appreciate that some market participants have been asking us for further transparency regarding the mid-term financial view. Therefore, we would like to use the opportunity to accommodate such requests a bit further. At the end of my presentation, I look forward to answering your questions.
Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. In case you wish to withdraw your question, press nine and star a second time. And the first question is from Patrick Steiner, Kepler Cheuvreux. Please go ahead with your question.
Good morning. Good morning, it's Patrick speaking. Thank you very much for taking my questions. Two from my side. Firstly, if you look at investment in the first three quarters, 345 million EUR, what's a realistic number for the full year, in your view? First one, and the second one, if I'm not mistaken, EVN KG earnings contribution turned positive in Q3. Could you explain what were the main drivers behind it? And should we expect this positive development to continue? Thanks.
Yeah, thanks a lot. First of all, we expect around EUR 900 million, yeah. You always know it's depending how the investment project can be finished at the end of September. So around EUR 900 million is a realistic outlook for this year, and this will be also the level of investment for the upcoming years. And the second is, of course, you might know we have this kind of development, that the third quarter is better than the fourth quarter of our business development. Because energy sales in the summer are always lower than, of course, in the winter period. Therefore, more or less, we are peaking after the third quarter, and therefore the outlook we gave today is a realistic outlook.
All right. Thank you very much. And specifically about EVN KG, do you expect the positive earnings contribution to continue generally in over the next quarters?
EVN KG is, of course, facing the last year of this, energy market, wholesale market turbulences, and of course, especially for the security of supply of gas, as we mentioned in the presentation and also in the document. I would expect for this year, something like around 100 million EUR loss for EVN KG, depending pretty much at the end. Then, of course, what is at the balance state the value of the derivatives, therefore, it's just an estimation.
Okay, very helpful. Thank you very much.
The next question comes from Teresa Schinwald, Raiffeisen Bank International. Please go ahead with your question.
Hi, good morning, everyone. Thanks for taking my questions. They're a bit valuation related. So first one is on the impact of the derivatives valuation in the Q3 , the results of EVN KG. Could you give us a hint of how much it was and, in particular, the gas valuation? Here, I would also like to ask for a bit of an outlook, because gas prices increased by 5 EUR or something, since the end of June. So if we can expect a more positive impact here in the Q4 . The second question is more on the segment outlook. So if you provided a range before for the energy segment, the lower end, and now it's looking a bit more negative.
What can we look for for a positive number and all that? And the same is actually on the other segment, if you could shed a bit more detail on that. And the third one is the usual, what's the order backlog for the energy segment? Thank you.
Okay. Thanks, Teresa. The first, I think, the third one, the first one is 666. So it's a simple number, and therefore I start with this. Regarding EVN KG, as I mentioned before, I would expect around 100 million EUR at the end of September, more or less, a realistic loss, which is more or less fifty-fifty regarding operative losses and the derivatives, and of course, we will know at the end of September what the whole market prices will be.
What was a problem this year, of course, that it was the second very warm winter, therefore, sales volumes were down, and the need, yeah, to impair the security of supply gas stored volumes, which we did in the summer of 2022, when the crisis was peaking regarding security in the winter. This went down from around 61 million at the end of March to 37.3 million, and gas prices, if they go up a bit, this might be also then reduced a little bit further, yeah, but we're talking about a couple of millions up and down, yeah, so I'm not expecting here, from today's point of view, a big change, yeah?
As we have seen, we have a strong result in renewable generation, despite the decrease of wholesale prices, because we could compensate with new capacities and new production, more or less the price reduction. But of course, it is a lower result than we have seen the heydays of last year. And of course, this will also in the future come down a further step, because wholesale market prices are different to what we have seen. The general outlook of the segments, if you took it on a simple line, is just the energy segment is negative in comparison. Generation, lower prices. In the grid network, we have positive tariffs, but less volumes.
Southeast, we will have an extraordinary good result due to this kind of regulatory situation in Bulgaria, which was very favorable, and this will be adjusted, of course, in the next year. Next year will be a correction year in Bulgaria, but we will confirm also on our investor webcast, yeah, that we expect this EUR 70-90 million on a midterm in Southeast. There's a more or less plannable result which we are targeting. And of course, the outlook for the environmental segment is driven by the impairment of the arbitration court decision regarding Budva. This is an extraordinary effect.
Okay, thank you very much. Thanks. At the moment, there seem to be no further questions. If you would like to ask a question, please press nine and star on your telephone keypad. And we have one more question coming from Siebold Dugerian, Erste & Société Générale. Please go ahead with your question.
Hello, can you hear me?
Yes.
Yes. Excellent.
Yeah, yeah. Thank you. Just one question regarding the guidance. Apparently, in the 3Q, in the nine months, you already almost, well, de-risk the guidance. May I ask why you are keeping the upper range of the guidance at this level?
Yes, a good point, yeah. But we're in the energy business, and in the summer quarter, the sales are traditionally the lowest. Therefore, the Q4 of our financial year is the weakest, and therefore, the expectation and the outlook we confirmed today is a realistic one. Also, if you look on the Q3 results, yeah, of the last years, yeah? So, we see this pattern that the summer quarter is the weakest in our financial business year.
Thank you.
For any further questions, please press nine star on your telephone keypad. Mr. Szyszkowitz, there are no further questions from the audience.
So thanks for joining today's conference call. We will publish the results for the full financial year on Thurs- Thursday, the seventeenth of December. Have a nice day and goodbye.