EQS-News: VERBUND AG: Results for quarters 1–3/2023: Strong income trend with improved outlook for 2023
EQS-News: VERBUND AG / Key word(s): Quarter Results/Change in Forecast
VERBUND AG: Results for quarters 1–3/2023: Strong income trend with
improved outlook for 2023
02.11.2023 / 07:59 CET/CEST
The issuer is solely responsible for the content of this announcement.
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The energy system is currently undergoing a comprehensive transformation
stemming from the dilemma of how to balance climate action and
decarbonisation plus achieving greater energy independence with the need
to maintain security of supply. A key component of the shift to an
essentially carbon-free energy system is large-scale expansion of
electricity generation from photovoltaic and wind power as well as
hydropower. However, expanding new renewable electricity generation on
this scale is making the European power grid far more volatile – something
that can only be mitigated through major expansion of the power grid and
the use of storage technologies or flexible electricity generation
facilities such as pumped storage power plants. VERBUND has earmarked
around €15bn for investment over the coming decade so that it can advance
decarbonisation efforts and continue to guarantee security of supply in
Austria.
A strong earnings position is an important prerequisite to be able to
finance and hence implement the investments needed for decarbonisation and
security of supply, and this is what VERBUND is reporting for
quarters 1–3/2023. EBITDA climbed by 83.6% year-on-year to €3,549.3m. The
reported Group result rose by 85.9% to €1,980.6m and the Group result
after adjustment for non-recurring effects was up 103.6% (non-recurring
effects in Q1–3/2023: €–20.2m; Q1–3/2022: €+82.6m). The positive income
trend compared with the previous year is attributable primarily to higher
electricity production on the strength of a better water supply, the rise
in average sales prices, higher earnings contributions from the
acquisition and commissioning of the new renewable generation facilities
and improved earnings contributions from regulated infrastructure
(electricity and gas grids).
At 0.93, the hydro coefficient for the run-of-river power plants was
7 percentage points below the long-term average but 9 percentage points
above the comparative prior-year figure. Generation from the annual
storage power plants rose by 7.1% in quarters 1–3/2023 compared with the
prior-year reporting period. Generation from hydropower plants thus
increased by 2,266 GWh to 23,102 GWh. The sharp rise in futures market
prices on the wholesale market that were relevant for the reporting period
gave earnings a considerable boost. Conversely, spot market prices fell in
quarters 1–3/2023. The average sales prices obtained for VERBUND’s own
generation from hydropower rose by €64.4/MWh to €176.0/MWh. Higher
generation from photovoltaic installations and wind power plants,
especially from the facilities purchased and put into operation in Spain,
also had a positive effect. In addition, higher earnings contributions
from Gas Connect Austria GmbH and Austrian Power Grid AG in the Grid
segment had a positive impact. 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 measures to tax windfall
profits likewise had an aggregate negative impact of around €77m on
EBITDA.
Earnings outlook for 2023 raised:
Based on average own generation from hydropower, wind power and
photovoltaic production in quarter 4/2023 and the opportunities and risks
identified, VERBUND expects EBITDA of between approximately €4,150m and
€4,450m and a reported Group result of between approximately €2,250m and
€2,450m in financial year 2023. VERBUND’s planned payout ratio for
financial year 2023 is between 45% and 55% of the Group result of between
around €2,270m and €2,470m, 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 Q1–3/2022 Q1–3/2023 Change
Revenue €m 7,617.3 9,789.9 28.5%
EBITDA €m 1,933.3 3,549.3 83.6%
Operating result €m 1,621.7 3,145.9 94.0%
Group result €m 1,065.2 1,980.6 85.9%
Earnings per share € 3.07 5.70 85.9%
EBIT margin % 21.3 32.1 –
EBITDA margin % 25.4 36.3 –
Cash flow from operating activities €m 1,120.8 4,153.4 –
Free cash flow before dividends €m -150.5 3,018.7 –
Free cash flow after dividends €m -628.4 1,475.0 –
Performance of VERBUND shares % -11.6 –2.0 –
Gearing % 89.6 23.3 –
Additional information as well as the Interim Financial Report for
quarters 1–3/2023 is available at www.verbund.com > Investor Relations >
Latest financial results.
Contact
Andreas Wollein
Head of Group Finance and Investor Relations
Phone: +43 (0)50 313-52604
Fax: +43 (0)50 313-52694
[1]investor-relations@verbund.com
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02.11.2023 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: 1763073
End of News EQS News Service
1763073 02.11.2023 CET/CEST
References
Visible links
1. investor-relations@verbund.com
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