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
   mailto:[email protected]

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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:      [email protected]
   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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