VERBUND AG
VERBUND AG: Results for quarters 1-3/2017: Earnings down due to low water supply and absence of the positive non-recurring effects reported in prior-year period. Full-year earnings forecast raised moderately.
DGAP-News: VERBUND AG / Key word(s): Quarter Results/Change in Forecast
In our strategy, we focus on our core markets in Austria and Germany and almost exclusively generate CO2-free electricity from low-cost hydropower. As an environmentally friendly power supplier with green electricity and flexible products from our portfolio of flexible power plants, including pumped storage power plants, storage power plants and our Mellach combined cycle gas turbine power plant, we play an important part in balancing out the increasing volatility in the grid and ensuring the security of supply in Austria. The regulated power grid and the network development plan are enormously important for our activities. We have also positioned ourselves as a solutions-driven provider of energy-related services for industry, households and e-mobility. Quarter 3/2017 saw a recovery in prices in the energy market. EEX wholesale power prices have climbed in recent months, due in particular to increases in hard coal and CO2 prices. China’s higher coal imports have led to a rise in global hard coal prices and the reform of the ETS currently under discussion has raised CO2 price expectations. Despite the improvement in the general environment, earnings were down in quarters 1-3/2017. This was due in particular to much weaker earnings in the Grid segment and below-average water supply. At 0.94, the hydro coefficient representing the water supply in rivers was down 7 percentage points year-on-year and 6% below the long-term average. As a result, generation from hydropower decreased by 1,360 GWh. On the whole, VERBUND’s own generation was 1.2% lower than in the prior-year period at 24,785 GWh. Even the sharp increase in thermal generation and the higher generation from new sources of renewable energy were unable to compensate for this. Although contribution margins generated in thermal operations from the use of the Mellach combined cycle gas turbine power plant for congestion management were higher, EBITDA was nevertheless lower overall than in the previous year because prior-year EBITDA had been impacted by other operating income from the settlement of various outstanding issues between VERBUND and EconGas GmbH. Positive effects on earnings performance were provided by the substantially higher contributions from flexible products as well as the measures taken to restructure thermal operations and the measures implemented under the programmes to reduce costs and increase efficiency. EBITDA therefore decreased by 18.1%, from EUR809.7m to EUR663.5m. The Group result was down by 20.7% on the prior-year period to EUR269.5m. Adjusted for non-recurring effects, EBITDA declined by a more moderate 5.0%, from EUR698.4m to EUR663.5m, and the adjusted Group result by 8.8%, from EUR276.4m to EUR252.1m. Outlook for 2017
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08.11.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
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: | Foreign Exchange(s) Wien (Amtlicher Handel / Official Market) |
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