EQS-News: VERBUND AG: Results for quarters 1–2/2023: strong income trend in the first half of 2023

EQS-News: VERBUND AG / Key word(s): Half Year Results
VERBUND AG: Results for quarters 1–2/2023: strong income trend in the
first half of 2023

27.07.2023 / 07:59 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Towards the end of 2022, the situation in the energy markets began to ease
slightly, continuing to do so in quarters 1–2/2023. In the first half of
2023, wholesale gas prices fell significantly compared with the previous
year. This was due to high stocks at gas storage facilities coupled with
weaker demand for gas. Accordingly, wholesale electricity prices also
fell. However, the market environment remains highly volatile.

Within the three focus areas of Mission V, VERBUND’s long-term
comprehensive transformation programme, VERBUND achieved further
milestones in quarters 1–2/2023 in the Hydro, New renewables and Grid
area. The hydropower plant projects under construction to boost our
renewable electricity generation (Reißeck II plus, Limberg III and
Gratkorn) are proceeding as planned. Positive progress was also made with
respect to the expansion of new renewables. In June 2023, VERBUND
completed its acquisition of Solarpower Holding GmbH, strengthening its
positioning in the solar photovoltaic market for large customers in
Austria and expanding its activities throughout the PV value chain.
Implementation of the wind and photovoltaic projects in Spain and other
international markets was largely on track. In June 2023, the 39 MW wind
project Loma de los Pinos near Seville (Spain) came on stream. Robust,
stable power grids are crucial to the success of the energy transition. In
quarter 2/2023, Austrian Power Grid AG reached a major milestone in its
efforts to enable the transition to clean energy and the decarbonisation
of the economy, industry and society: the Upper Austrian state government,
as the EIA authority conducting the proceedings, confirmed the
environmental compatibility of the “Energy Security in Upper Austria
(Central region)” project. In addition, construction projects such as the
380-kV Salzburg line, the 220-kV Reschen Pass line and various substation
projects are proceeding on schedule.

VERBUND saw an improvement in the results posted for quarters 1–2/2023.
EBITDA climbed by 63.6% year-on-year to €2,255.2m. The reported Group
result rose by 57.5% to €1,287.2m and the Group result after adjustment
for non-recurring effects (non-recurring effects in Q1–2/2023: €–20.2m;
Q1–2/2022: €+82.6m) was up 78.0%. At 0.95, the hydro coefficient for the
run-of-river power plants was 5 percentage points below the long-term
average but 5 percentage points above the comparative prior-year figure.
Generation from the annual storage power plants rose by 6.2% in
quarters 1–2/2023 compared with the prior-year reporting period.
Generation from hydropower plants thus increased by 947 GWh to 15,054 GWh.
The sharp rise in wholesale electricity prices on the futures markets that
were relevant for the reporting period gave earnings a considerable boost.
Conversely, spot market prices fell in quarters 1–2/2023. The average
sales prices obtained for VERBUND’s own generation from hydropower rose by
€69.6/MWh to €182.1/MWh. Higher generation from photovoltaic installations
and wind power plants, especially from the plants put into operation in
Spain, also had a positive effect, as did the higher earnings contribution
from Gas Connect Austria GmbH in the Grid segment. This stood in contrast
to the reduction in earnings caused by a significant decrease in thermal
generation and the negative earnings contribution from the Sales segment
attributable to high procurement costs, among other factors. The taxation
of the windfall revenues of inframarginal power generators in Austria from
December 2022 onwards and corresponding windfall profits in Romania had a
negative impact of around €172m on the Group’s result.

Earnings forecast for 2023 adjusted

Based on expectations of average levels of own generation from hydropower,
wind power and photovoltaic production in quarters 3–4/2023 as well as the
opportunities and risks identified, VERBUND expects EBITDA of between
around €3,800m and €4,200m and a reported Group result of between around
€2,050m and €2,300m in financial year 2023. VERBUND’s planned dividend
payout ratio for 2023 is between 45% and 55% of the Group result of
approximately €2,070m to €2,320m, after adjusting for non-recurring
effects.

 

The earnings forecast and the information on the expected payout ratio are
contingent on VERBUND not being impacted further by possible energy policy
measures to skim off some of the profits at energy companies.

         
KPIs        
  Unit Q1–2/2022 Q1–2/2023 Change
Revenue €m 4,731.8 6,686.5 41.3%
EBITDA €m 1,378.9 2,255.2 63.6%
Operating result €m 1,184.2 1,988.0 67.9%
Group result €m 817.1 1,287.2 57.5%
Earnings per share € 2.35 3.71 57.5%
EBIT margin % 25.0 29.7 –
EBITDA margin % 29.1 33.7 –
Cash flow from operating activities €m 920.3 2,895.7 –
Free cash flow before dividends €m 366.9 2,470.9 –
Free cash flow after dividends €m –111.0 927.1 –
Performance of VERBUND shares % –5.6 –6.6 –
Gearing % 67.0 31.3 –
         

 

Additional information as well as the Interim Financial Report for
quarters 1–2/2023 is available at www.verbund.com > Investor Relations >
Latest financial results.

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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27.07.2023 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: 1689323

 
End of News EQS News Service

1689323  27.07.2023 CET/CEST

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