EQS-News: VERBUND AG: Impact on VERBUND of the levy on excess profits

EQS-News: VERBUND AG / Key word(s): Statement
VERBUND AG: Impact on VERBUND of the levy on excess profits

21.12.2022 / 12:25 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Following the resolution of the Federal Act on the Electricity Energy
Crisis Contribution (Bundesgesetz über den Energiekrisenbeitrag-Strom,
EKB-S) in the Austrian National Council on 13 December 2022, the
Management of VERBUND AG provides an overview below of the measures
adopted and their expected impact on VERBUND.

The law in Austria essentially provides for electricity revenues to be
capped at €140/MWh, in particular for the hydropower (without pumped
storage), wind power, solar (PV and solar thermal) and hard coal
generation technologies. This revenue cap can increase to a maximum of
€176/MWh as a result of the eligibility of investments in renewables
(currently hydropower, wind and PV power in VERBUND’s case) and in energy
efficiency. The initiative takes into account 50% of the investments in
the reporting period from 1 January 2022 to 31 December 2023 or the
partial amounts capitalised in this period. Electricity generated from
flexible pumped storage power plants, as well as flexibility products
(control power products), which are necessary for the stabilisation of the
electricity grids and therefore for the security of supply, are among the
activities that are exempt from the levy on profits.

Revenues above the price cap will be levied at 90% once the above
exceptions are taken into account. The monthly excess revenues accrued
between 1 December 2022 and 31 December 2023 will be subject to the levy.
The reference value for the profit levy is the revenue that results when
electricity derivatives and electricity purchase agreements are taken into
account (average monthly price). The amount levied is 100% tax-deductible.

The EKB-S will be applied on the following two dates: on 30 September 2023
for the period 1 December 2022 to 30 June 2023, and on 31 March 2024 for
the period 1 July 2023 to 31 December 2023.

The special dividend announced by VERBUND on 25 May 2022 as per inside
information cannot be offset against these measures, but it is still
planned.

In addition to the profit levy in Austria, VERBUND and its renewable
generation plants are also affected by market interventions in Germany,
Spain and Romania; above all the new law in Germany is expected to result
in significant amounts levied. The new profit levy system in Germany is
based on differentiated limits depending on the generation technology, as
well as on the type of marketing in the case of renewable energy plants.
In Germany, 90% of the excess revenues accrued between 1 December 2022 and
30 June 2023 will be subject to the levy – with the possibility of an
extension from 30 June 2023 until 30 April 2024.

Based on the laws and regulations in place, VERBUND assumes on the basis
of current market data (reporting date: 9 December 2022) that the profit
levy (EBITDA) will be recognised in profit or loss in 2023 at a total
amount of approximately €2.1 billion (of which €1.8 billion in Austria and
€0.3 billion in Germany). The payments from the profit levy will
essentially be divided equally between the years 2023 and 2024.

The figures announced are best estimates of the effects of the profit levy
on a specific reference date (9 December 2022) based on current market
values (wholesale prices) and planned figures (investments, planned
production volumes). The actual values may differ considerably from the
planned values depending on any additional developments.

Contact: Andreas Wollein
Head of Group Finance and Investor Relations
T.: +43 (0)5 03 13 – 52604
F.: +43 (0)5 03 13 – 52694
investor-relations@verbund.com

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21.12.2022 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: VERBUND AG
Am Hof 6A
1010 Wien
Austria
Phone: 0043-1-53113-52604
Fax: 0043-1-53113-52694
E-mail: investor-relations@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1518995

 
End of News EQS News Service

1518995  21.12.2022 CET/CEST

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