EQS-News: VERBUND AG: Results for quarters 1–2/2024: decline in earnings due to sharp drop in sales prices
EQS-News: VERBUND AG / Key word(s): Half Year Results
VERBUND AG: Results for quarters 1–2/2024: decline in earnings due to
sharp drop in sales prices
25.07.2024 / 07:59 CET/CEST
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
After a record year in 2023, VERBUND entered financial year 2024 as a
strong, resilient and well-positioned company. However, the energy market
was volatile in quarters 1–2/2024. In particular, the key value driver for
VERBUND – the wholesale price for electricity – is fluctuating
considerably. Overall, wholesale prices remain higher than before the
start of the Russia-Ukraine war, but well below the peaks of 2022 and
2023.
Our business activities in quarter 2/2024 centred on the systematic
implementation of the 2030 sustainable growth strategy. Strengthening our
integrated position in the domestic market with a focus on expanding
domestic hydropower and the Austrian high-voltage grid, expanding new
renewables energy generation in Europe and building a green hydrogen
economy are top priorities. Our Mission V roadmap is helping us to meet
the challenges ahead step by step. VERBUND is working across the board to
transform the grid and make the transition to clean energy, and achieved
numerous milestones again in quarter 2/2024.
Due to a weaker energy market environment, VERBUND posted lower results in
quarters 1–2/2024 compared with the previous year. EBITDA fell by 21.9%
year-on-year to €1,762.4m. The Group result was down 29.3% to €910.1m and
the Group result after adjustment for non-recurring effects was down 22.9%
year-on-year. 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 1–2/2024. The average sales
price achieved for own generation from hydropower fell by €68.8/MWh to
€113.3/MWh. The water supply, which was well above average, had a positive
impact on earnings. At 1.12, the hydro coefficient for the run-of-river
power plants was 17 percentage points above the prior-year figure and
12 percentage points higher than the long-term average. By contrast,
generation from annual storage power plants fell by 3.1% in
quarters 1–2/2024 compared with the prior-year reporting period.
Generation from hydropower thus increased by 2,239 GWh to 17,292 GWh.
Despite higher generation from photovoltaic installations and wind power
plants, particularly those that came online in Spain, the earnings
contribution from the New renewables segment declined due to lower sales
prices. A significantly higher 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. Earnings were also
reduced by a lower contribution from flexibility products.
Earnings forecast for 2024 adjusted
Based on expectations of average levels of own generation from hydropower,
wind power and photovoltaic production in quarters 3–4/2024 as well as the
current opportunities and risks identified, VERBUND expects EBITDA of
between around €3,000m and €3,300m and a Group result of between around
€1,500m and €1,650m 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 €1,600m and €1,750m, after adjusting for non-recurring
effects.
KPIs
Unit Q1–2/2023 Q1–2/2024 Change
Revenue €m 6,686.5 3,892.6 –41.8%
EBITDA €m 2,255.2 1,762.4 –21.9%
Operating result €m 1,988.0 1,282.3 –35.5%
Group result €m 1,287.2 910.1 –29.3%
Earnings per share € 3.71 2.62 –29.3%
EBIT margin % 29.7 32.9 –
EBITDA margin % 33.7 45.3 –
Cash flow from operating activities €m 2,895.7 1,850.2 –36.1%
Free cash flow before dividends €m 2,470.9 1,331.6 –46.1%
Free cash flow after dividends €m 927.1 –602.4 –
Performance of VERBUND shares % –6.6 –12.4 –
Gearing % 31.3 24.4 –
Additional information and the interim financial report for quarters
1–2/2024 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
investor-relations@verbund.com
══════════════════════════════════════════════════════════════════════════
25.07.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
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: investor-relations@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1953561
End of News EQS News Service
1953561 25.07.2024 CET/CEST
OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS. www.ots.at
© Copyright APA-OTS Originaltext-Service GmbH und der jeweilige Aussender