EQS-News: VERBUND AG: Results for quarter 1/2023: strong income trend despite lower water supply

EQS-News: VERBUND AG / Key word(s): Quarter Results
   VERBUND AG: Results for quarter 1/2023: strong income trend despite lower
   water supply

   11.05.2023 / 07:59 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   The situation in the energy markets eased slightly in quarter 1/2023,
   continuing the trend that had begun at the end of 2022. Wholesale prices
   for gas and electricity receded significantly in the quarter now ended –
   at times even falling below the levels recorded before the outbreak of the
   war in Ukraine – as concerns about Europe having adequate supplies of gas
   for the winter were allayed by filling levels of gas storage facilities
   reaching all-time highs.

   VERBUND achieved further milestones in the implementation of its strategy
   in quarter 1/2023, not only in its Hydro and New renewables segments, but
   also in the Grid segment. The hydropower projects (Reißeck II plus,
   Limberg III, Gratkorn) are proceeding as planned. By driving the
   development of new renewables in Europe, VERBUND will also help reduce
   reliance on fossil fuels in the medium term and contribute to a
   climate-neutral Europe. Implementation of the wind and photovoltaic
   projects in Spain as well as the other projects in the international
   markets were further expedited in quarter 1/2023. However, strong, stable
   grids are imperative for a successful transition to clean energy, which is
   why the main emphasis of our ambitious investment programme is currently
   on investments in expansion of the power grids. VERBUND achieved yet
   another milestone in putting Bavaria’s largest battery storage into
   operation. The two storage facilities in Diespeck and Iphofen together
   make up VERBUND’s North Bavaria battery storage chain with total capacity
   of 42 MW and a storage volume of 48 MWh. The large-scale batteries are
   deployed when the load on the distribution network is particularly high.

   Green hydrogen is an important contributor to the energy transition and a
   pioneering field in which VERBUND will play a vital role. With this in
   mind, VERBUND signed a Memorandum of Understanding with two enterprises in
   quarter 1/2023. VERBUND has now partnered with Saudi energy company
   ACWA Power to explore joint projects for green hydrogen. In addition,
   VERBUND inked an agreement with Masdar (UAE) with the objective of
   exploring projects for production of green hydrogen for the Central
   European market.

   VERBUND saw an improvement in the results posted for quarter 1/2023.
   EBITDA climbed by 18.7% year-on-year to €967.3m. The reported Group result
   rose by 2.8% to €529.0m and the Group result after adjustment for
   non-recurring effects was up 14.1%. At 0.93, the hydro coefficient for the
   run-of-river power plants was 1 percentage point below the prior-year
   figure and 7 percentage points lower than the long-term average. By
   contrast, generation from annual storage power plants rose by 13.5% in
   quarter 1/2023 compared with the prior-year reporting period. Generation
   from hydropower plants thus increased by 121 GWh to 6,089 GWh. The sharp
   rise in wholesale electricity prices on the futures markets that were
   relevant for the reporting period gave earnings a considerable boost.
   Prices on the spot markets declined in quarter 1/2023. Consequently, the
   average sales price obtained for our own generation from hydropower rose
   by €88.9/MWh to €202.8/MWh. Higher generation from photovoltaic
   installations and wind power plants, especially from the plants put into
   operation in Spain, also had a positive effect. This stood in contrast to
   the negative effect 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 and Germany
   from December 2022 and corresponding windfall profits in Romania
   additionally had a negative impact 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 2–4/2023 as well as the
   opportunities and risks identified, VERBUND expects EBITDA of between
   around €3,700m and €4,300m and a reported Group result of between around
   €2,000m and €2,400m in financial year 2023. VERBUND’s planned dividend
   payout ratio for 2023 is between 45% and 55% of the Group result of
   approximately €2,000m to €2,400m, 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 Q1/2022 Q1/2023 Change
   Revenue                             €m   2,531.9 3,262.7  28.9%
   EBITDA                              €m     814.9   967.3  18.7%
   Operating result                    €m     705.7   841.4  19.2%
   Group result                        €m     514.4   529.0   2.8%
   Earnings per share                  €       1.48    1.52   2.8%
   EBIT margin                         %       27.9    25.8      –
   EBITDA margin                       %       32.2    29.6      –
   Cash flow from operating activities €m     209.2 1,363.7      –
   Free cash flow before dividends     €m    –105.1 1,160.5      –
   Free cash flow after dividends      €m    –105.1 1,160.5      –
   Performance of VERBUND shares       %       –3.4     1.7      –
   Gearing                             %       60.7    27.5      –
                                                             

    

   Additional information as well as the Interim Financial Report for
   quarter 1/2023 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
   mailto:[email protected]

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   11.05.2023 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:      [email protected]
   Internet:    www.verbund.com
   ISIN:        AT0000746409
   WKN:         877738
   Indices:     ATX
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1629959


    
   End of News EQS News Service


   1629959  11.05.2023 CET/CEST

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