EQS-News: VERBUND AG: Results for quarter 1/2024: slightly lower earnings despite good water supply
EQS-News: VERBUND AG / Key word(s): Quarter Results
VERBUND AG: Results for quarter 1/2024: slightly lower earnings despite
good water supply
08.05.2024 / 07:58 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Having posted the best result in its history last year, VERBUND can look
back on an extremely successful 2023 and is starting 2024 strong,
resilient and well-positioned. However, the energy market value drivers
that are key to VERBUND’s earnings have deteriorated compared to the highs
of 2022. The second half of 2023 saw another sharp fall in prices for
emission allowances and gas, which have a knock-on effect on wholesale
electricity prices. The marked decline in gas prices was driven by lower
demand as a result of the mild winter, Europe’s somewhat sluggish economy
and relatively high natural gas storage levels. Given these factors along
with a lower anticipated earnings contribution from regulated grid
operations, the earnings outlook for 2024 as a whole remains very healthy,
but well below the results for 2023.
Despite the changes in the energy market environment, we are
systematically forging ahead with our sustainable strategy 2030, which
aims to strengthen our integrated positioning in the domestic market,
expand new renewables electricity generation in Europe and develop a green
hydrogen economy. Mission V, which we launched at the beginning of 2023,
is our roadmap for mastering the challenges ahead and pushing on with the
grid and energy transition.
VERBUND posted slightly lower quarter 1 results in 2024 due to a weaker
energy market environment. EBITDA fell by 8.7% year-on-year to €883.4m.
The Group result was down 4.3% to €506.0m. At 1.29, the hydro coefficient
for the run-of-river power plants was 36 percentage points above the
prior-year figure and 29 percentage points higher than the long-term
average. By contrast, generation from annual storage power plants fell by
4.8% in quarter 1/2024 compared with the prior-year reporting period.
Generation from hydropower thus increased by 1,804 GWh to 7,893 GWh.
Earnings were hard-hit by the sharp drop in futures prices for wholesale
electricity that were relevant for the reporting period. Spot market
prices likewise retreated in quarter 1/2024. The average sales price
achieved for own generation from hydropower fell by €84.7/MWh to
€118.1/MWh. Despite higher generation from photovoltaic installations and
wind power plants, particularly those that came on stream in Spain, the
earnings contribution from the New renewables segment also declined
slightly due to lower sales prices. A significantly higher earnings
contribution in the Sales segment had a positive effect, partly due to
lower procurement costs, while the contribution from the Grid segment
suffered from a significant drop in earnings at Gas Connect Austria GmbH.
Earnings were also reduced by a lower contribution from flexibility
products.
Earnings forecast for 2024 adjusted
Based on expectations of average levels of own generation from hydropower,
wind power and solar power as well as the current opportunities and risks
identified, VERBUND expects EBITDA of between around €2,800m and €3,300m
and a Group result of between around €1,450m and €1,750m in financial
year 2024. VERBUND’s planned payout ratio for financial year 2024 is
between 45% and 55% of the Group result of between around €1,450m and
€1,750m, after adjusting for non-recurring effects.
The earnings forecast and the information on the expected payout ratio are
contingent on VERBUND not being impacted by any further measures to
partially tax windfall profits at energy companies.
KPIs
Unit Q1/2023 Q1/2024 Change
Revenue €m 3,262.7 2,007.8 –38.5%
EBITDA €m 967.3 883.4 –8.7%
Operating result €m 841.4 744.7 –11.5%
Group result €m 529.0 506.0 –4.3%
Earnings per share € 1.52 1.46 –4.3%
EBIT margin % 25.8 37.1 –
EBITDA margin % 29.6 44.0 –
Cash flow from operating activities €m 1,363.7 929.3 –31.9%
Free cash flow before dividends €m 1,160,5 675.0 –41.8%
Free cash flow after dividends €m 1,160,5 675.0 –41.8%
Performance of VERBUND shares % 1.7 –19.4 –
Gearing % 27.5 9.4 –
Additional information as well as the Interim Financial Report for
quarter 1/2024 is available on the website 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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08.05.2024 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: 1898135
End of News EQS News Service
1898135 08.05.2024 CET/CEST
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