EQS-News: VERBUND AG / Key word(s): Annual Results
VERBUND AG: 2023 annual results: VERBUND posts encouraging business
performance in 2023
14.03.2024 / 07:58 CET/CEST
The issuer is solely responsible for the content of this announcement.
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The VERBUND Group’s strategic and economic development in 2023 took place
in a highly complex environment that was impacted in no small measure by
geopolitical turmoil and macro- and microeconomic factors, along with
sector-specific developments and regulatory/political decisions. Overall,
2023 was a very successful year for our Group, and as a strong, resilient
company with a good positioning we can look ahead to financial year 2024
with optimism. The military conflicts between Russia and Ukraine as well
as in the Middle East changed the structure of Europe’s energy supply with
primary fuels, which in turn affected the electricity price trends in the
European wholesale markets. Not only did increased procurement of
non-Russian gas keep purchase prices high, but price volatility also rose
due to growing uncertainty about future developments. In addition, rising
inflation combined with repeated interest rate hikes and a slowdown in
economic growth weighed on performance in the sector and VERBUND’s own
performance. Higher financing and procurement costs impacted investing
activities and eroded the profitability of new projects. Furthermore, the
sharp rise in electricity and gas prices was passed on to customers only
in part and with a time lag, and also led to discussions about changing
the electricity market design and taxation of windfall profits. With these
difficult conditions as a backdrop, the energy sector is still in the
midst of a transformation of the energy system towards decarbonised
generation of electricity using new renewable sources of energy. Expansion
of the domestic power grid along with further research and integration of
storage technologies into the energy system are absolutely essential for
developing these more volatile forms of generation and rising to the
energy transition challenge.
VERBUND’s strong business performance in 2023
VERBUND considerably increased its results of operations and significantly
improved all relevant KPIs. EBITDA climbed by 42.1% year-on-year to
€4,490.5m. The reported Group result rose by 32.0% to €2,266.1m and the
Group result after adjustment for non-recurring effects was up 49.1%
(non-recurring effects in 2023: €–349.7m; 2022: €–37.9m). At 0.98, the
hydro coefficient for the run-of-river power plants was 2 percentage
points below the long-term average, but 12 percentage points above the
comparative prior-year figure. Generation from the annual storage power
plants was up 9.6% year-on-year in 2023. Generation from hydropower thus
increased by 3,755 GWh to 30,509 GWh. The sharp rise in wholesale
electricity prices on the futures markets that were relevant for the
reporting period also gave earnings a large boost. By contrast, prices on
the spot markets declined in 2023. The average sales price achieved for
own generation from hydropower climbed by €52.0/MWh to €167.1/MWh.
Furthermore, higher generation from photovoltaic installations and wind
power plants, especially from the commissioning of new power plant
capacity in Spain, had a positive effect, as did significantly higher
earnings contributions from Gas Connect Austria GmbH and Austrian Power
Grid AG in the Grid segment. This stood in contrast to the reduction in
earnings caused by a significant decrease in thermal generation, the lower
contribution from flexibility products and the negative earnings
contribution from the Sales segment attributable – among other things – to
high procurement costs for electricity that were not passed on to
consumers in full. The measures to tax windfall profits likewise had an
aggregate negative impact of around €95m on EBITDA.
Higher dividend
A dividend of €4.15 per share for financial year 2023 will be proposed to
the Annual General Meeting on 30 April 2024. This dividend breaks down
into a regular dividend of €3.40 per share plus a special dividend of
€0.75 per share. The one-off special dividend will allow shareholders to
participate in the Group’s extraordinarily positive business performance
for financial year 2023 by means of a higher payout. The payout ratio
(regular dividend plus special dividend) for 2023 will be 63.6% of the
reported Group result or 55.1% of the Group result after adjusting for
non-recurring effects. The payout ratio for 2023 relating to the regular
dividend will be 45.2% based on the Group result after adjustment for
non-recurring effects.
Forecast for 2024
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 €2,600m and €3,300m
and a Group result of between around €1,300m and €1,750m in financial
year 2024. VERBUND’s planned payout ratio for the financial year 2024 is
between 45% and 55% of the Group result of between around €1,300m 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 2022 2023 Change
Revenue* €m 10,346.1 10,449.5 1.0%
EBITDA €m 3,160.7 4,490.5 42.1%
Operating result €m 2,626.2 3,501.9 33.3%
Group result €m 1,717.0 2,266.1 32.0%
Earnings per share € 4.94 6.52 32.0%
EBIT margin* % 25.4 33.5 –
EBITDA margin* % 30.5 43.0 –
Cash flow from operating €m 2,019.9 5,083.0 –
activities*
Free cash flow before €m 452.1 3,651.6 –
dividends*
Free cash flow after €m –25.7 2,098.1 –
dividends
Net debt/EBITDA X 1.2 0.4 –
Performance of VERBUND shares % –20.5 6.9 –
(Proposed) dividend per share € 2.44 3.40 39.3%
(Proposed) special dividend € 1.16 0.75 –35.3%
per share
Share of generation from % 95.6 97.8 2.4%
renewables
Specific GHG emissions (Scope g CO(2)e/kWh 16.8 7.9 –53.0%
1/total electricity
generated)**
* calculation adjusted retrospectively in accordance with IAS 8 in
financial year 2021 with effect from 1 January 2020
** from electricity generation and transmission (excl. GCA) as a
percentage of total electricity generated (incl. purchase rights, excl.
electricity generated for district heating). Preliminary figures before
ETS audit
Additional information on the non-financial KPIs can be found in the
Integrated Annual Report 2023, available on the website 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
investor-relations@verbund.com
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14.03.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
═════════════════════════════════════════ ═════════ ════════════════════════ Language: English Company: Verbund AM Hof 6a 1010 Vienna Austria Phone: 0043-1-53113-52604 Fax: 0043- 1-53113-52694 Email: investor relations@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1858343
End of News EQS News Service
1858343 14.03.2024 CET/CEST