EQS-News: VERBUND AG / Key word(s): Quarter Results/9 Month figures
VERBUND AG: Results for quarters 1–3/2024: Decline in earnings despite
good water supply and higher wind and PV output
07.11.2024 / 07:59 CET/CEST
The issuer is solely responsible for the content of this announcement.
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The unmistakeable impact of climate change could be felt yet again in
quarter 3/2024, which was marked by extreme weather conditions. Parts of
Austria saw localised flooding in September. At the same time, we
experienced a hot, dry summer intensified by the exceptionally warm
Adriatic Sea, prompting severe storms and extreme weather phenomena. In
light of this, it is abundantly clear that climate change is well underway
and affects us all.
In order to address climate change, we are pursuing VERBUND’s 2030
strategy. With this strategy, we are not only sending a clear signal for
climate change mitigation, but also making a major contribution to
security of supply in Austria. We are investing in the further expansion
of Austrian hydropower generation, above all in flexible storage power
plants, to be able to compensate for the increased volatility in the
electricity markets. We are also investing in the expansion of the
Austrian high-voltage grid so as to be able to integrate increasing
renewable electricity generation into the European electricity system, and
we are investing in the expansion of electricity generation from wind and
photovoltaic in our defined European target markets in order to achieve
greater diversification in renewable electricity generation and be able to
supply our customers exclusively with renewable electricity. Investments
in large-scale battery storage concepts to stabilise the electricity
supply, and our hydrogen initiatives, will play a key part in
decarbonising the energy system.
Though VERBUND’s results declined in quarters 1–3/2024 due to the
normalisation of conditions in the energy market following the gas price
shock that occurred immediately after the outbreak of the Russia-Ukraine
conflict, they are at a historical high level. EBITDA fell by 26.0%
year-on-year to €2,625.2m. The Group result was down 30.0% to €1,387.2m
and the Group result after adjustment for non-recurring effects was down
25.7% year-on-year at €1,485.7m. The water supply, which was well above
average, bolstered earnings. At 1.07, the hydro coefficient for the
run-of-river power plants was 14 percentage points above the prior-year
figure and 7 percentage points higher than 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 likewise fell in quarters 1–3/2024. The average sales price
achieved by VERBUND for own generation from hydropower fell by €62.2/MWh
to €113.8/MWh. Despite higher generation from photovoltaic installations
and wind power plants, particularly those that came on stream in Spain and
the wind power plants acquired in Austria and Germany, the earnings
contribution from the New renewables segment also declined due to lower
sales prices. A significantly improved (though still negative) earnings
contribution in the Sales segment 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.
Full-year 2024 guidance raised
Given the better-than-expected earnings performance, we have raised our
full-year guidance for 2024. Based on expectations of average levels of
own generation from hydropower, wind power and photovoltaic production in
quarter 4/2024 as well as the opportunities and risks currently
identified, VERBUND expects EBITDA of between around €3,200m and €3,400m
and a Group result of between around €1,700m and €1,800m 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 €1,800m and €1,900m,
after adjusting for non-recurring effects.
KPIs
Unit Q1–3/2023 Q1–3/2024 Change
Revenue €m 9,789.9 5,837.6 –40.4%
EBITDA €m 3,549.3 2,625.2 –26.0%
Operating result €m 3,145.9 2,003.2 –36.3%
Group result €m 1,980.6 1,387.2 –30.0%
Earnings per share € 5.70 3.99 –30.0%
EBIT margin % 32.1 34.3 –
EBITDA margin % 36.3 45.0 –
Cash flow from operating activities €m 4,153.4 2,332.8 –43.8%
Free cash flow before dividends €m 3,018.7 1,541.5 –48.9%
Free cash flow after dividends €m 1,475.0 –392.5 –
Performance of VERBUND shares % –2.0 –11.4 –
Gearing % 23.3 22.2 –
Additional information and the interim financial report for quarters
1–3/2024 can be found 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:investor-relations@verbund.com
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07.11.2024 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: 2024367
End of News EQS News Service
2024367 07.11.2024 CET/CEST
