EQS-News: VERBUND AG: 2024 annual results: high earnings despite a decline

EQS-News: VERBUND AG / Key word(s): Annual Results
   VERBUND AG: 2024 annual results: high earnings despite a decline

   20.03.2025 / 07:59 CET/CEST
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   The 2024 financial year turned out to be challenging, unpredictable and
   highly volatile in every respect for the energy market. Geopolitical
   events in particular, especially the war in Ukraine and the associated
   impacts on European gas prices, but also the weakening economy in Europe,
   had a massive impact on European wholesale electricity prices, which are a
   key driver of the Group’s business performance. Furthermore, the landmark
   elections in the European Union, some EU member states, the United States
   and most recently in Austria also sparked intense debate about the future
   course of the regulatory and political framework in the energy sector. The
   outcome of the elections in the United States in particular, which could
   bring a renewed focus on promoting gas and expanding nuclear power, as
   well as growing realism about the spiralling costs of the energy
   transition and how they will be financed and apportioned in Europe, has
   led to a lack of predictable long-term framework conditions. Such
   predictability is, however, a prerequisite for investing long-term in
   tomorrow’s energy. These developments have made it clear that striking a
   balance between security of supply, climate action and competitiveness on
   the one hand and the threat of deindustrialisation in Europe on the other
   remains a challenge. Against this backdrop, we at VERBUND are consistently
   focusing on advancing our strategic goals and are proud to have achieved
   some major successes in financial year 2024, especially in such a
   challenging environment.

   Results for 2024

   Following extraordinarily high earnings in financial year 2023 due to the
   gas price shock immediately after the outbreak of the Russia-Ukraine
   conflict, earnings declined in financial year 2024 due to lower wholesale
   prices. EBITDA fell by 22.5% year-on-year to €3,480.3m. The Group result
   was down 17.2% to €1,875.3m, and the Group result after adjustment for
   non-recurring effects declined by 24.5% year-on-year to €1,975.5m. The
   water supply, which was well above average, had a positive effect on
   earnings. The hydro coefficient for the run-of-river power plants came to
   1.09, or 11 percentage points above the prior-year figure and 9 percentage
   points above the long-term average. Earnings were hard-hit by the sharp
   drop in futures prices for wholesale electricity that were relevant for
   the reporting period. Spot market prices also declined in financial year
   2024. The average sales price achieved by VERBUND for its own generation
   from hydropower thus fell by €49.1/MWh to €118.0/MWh. Despite higher
   generation from photovoltaic installations and wind power plants, the
   earnings contribution from the New renewables segment also declined due to
   lower sales prices. By contrast, a significantly improved earnings
   contribution from the Sales segment compared with 2023 had a positive
   effect, partly due to lower procurement costs, while the contribution from
   the Grid segment suffered due to a drop in earnings at
   Gas Connect Austria GmbH and Austrian Power Grid AG.

   Dividend

   An ordinary dividend of €2.80 per share for financial year 2024 will be
   proposed to the Annual General Meeting on 29 April 2025. Distribution of
   the dividend requires the approval of the shareholders of VERBUND AG at
   the 2025 Annual General Meeting.

   Forecast for 2025

   Based on expectations of average levels of own generation from hydropower,
   wind power and solar power as well as the opportunities and risks
   identified, VERBUND expects EBITDA of between around €2,700m and €3,300m
   and a Group result of between around €1,350m and €1,750m in financial
   year 2025. VERBUND’s planned payout ratio for financial year 2025 is
   between 45% and 55% of the Group result of between around €1,350m and
   €1,750m, after adjusting for non-recurring effects. The earnings forecast
   is contingent on the Group not being impacted by any further legal or
   regulatory changes.

   Extension and amendment of the Federal Act on the Electricity Energy
   Crisis Contribution

   The Electricity Energy Crisis Contribution (EKB-S) came into effect at the
   end of 2022. The Federal Act on the Electricity Energy Crisis Contribution
   (Bundesgesetz über den Energiekrisenbeitrag-Strom) remains in force and,
   according to the current version, the most recent EKB-S collection period
   came to an end on 31 December 2024. Along with the revision of various
   parameters, the act has now been extended for five additional collection
   periods from 1 April to 30 March of the following year for the years 2025
   to 2030. In principle, the act sets a cap of €90/MWh on electricity
   revenue generated by existing plants and €100/MWh for new plants
   (commissioned from 1 April 2025). Exemptions apply, among other things,
   for pumped storage facilities. Revenues above the price cap are levied at
   95%. The monthly excess revenues accrued between 1 April 2025 and 31 March
   2030 will be subject to the levy.

   Based on current information and depending on the development of
   electricity prices, the hydro and new renewables coefficients and the
   deduction of investments, VERBUND expects windfall tax in the range of
   €50m to €100m to be levied for financial year 2025. This amount is covered
   by the above outlook for financial year 2025.

    

   KPIs                                          Unit     2023    2024 Change
   Revenue*                                        €m 10,449.5 8,224.6 −21.1%
   EBITDA                                          €m  4,490.5 3,480.3 −22.5%
   Operating result                                €m  3,501.9 2,726.0 −22.2%
   Group result                                    €m  2,266.1 1,875.3 −17.2%
   Earnings per share                               €     6.52    5.40 −17.2%
   EBIT margin*                                     %     33.5    33.1      –
   EBITDA margin*                                   %     43.0    42.2      –
   Cash flow from operating activities*            €m  5,083.0 3,248.6 −36.1%
   Free cash flow before dividends*                €m  3,651.6 2,078.8 −43.1%
   Free cash flow after dividends                  €m  2,098.1   144.8 −93.1%
   Net debt/EBITDA                                  X      0.4     0.6      –
   Performance of VERBUND shares                    %      6.9   −16.7      –
   (Proposed) dividend per                          €     3.40    2.80 −17.6%
   share          
   (Proposed) special dividend per                  €     0.75       –      –
   share          
   Share of generation from                         %     97.8    96.4  −1.5%
   renewables              
   Specific GHG emissions (Scope 1/total g CO[2]e/kWh      7.9    13.0 +64.6%
   electricity generated)**

   * calculation adjusted retrospectively in financial year 2021 in
   accordance with IAS 8, with effect from 1 January 2020

   ** from electricity generation and transmission (excluding GCA) as a
   percentage of total electricity generated (including purchase rights,
   excluding electricity generated for district heating). Preliminary figures
   before ETS audit

    

   Additional information on VERBUND’s non-financial KPIs can be found in the
   Integrated Annual Report 2024, available on the VERBUND website at
   www.verbund.com > About VERBUND > 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]

   ══════════════════════════════════════════════════════════════════════════

   20.03.2025 CET/CEST This Corporate News was distributed by EQS Group.
   www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   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: 2103462


    
   End of News EQS News Service


   2103462  20.03.2025 CET/CEST

   https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=2103462&application_name=news&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print