EQS-News: VERBUND AG / Key word(s): Quarter Results
VERBUND AG: Results for quarter 1/2023: strong income trend despite lower
water supply

11.05.2023 / 07:59 CET/CEST
The issuer is solely responsible for the content of this announcement.


The situation in the energy markets eased slightly in quarter 1/2023,
continuing the trend that had begun at the end of 2022. Wholesale prices
for gas and electricity receded significantly in the quarter now ended –
at times even falling below the levels recorded before the outbreak of the
war in Ukraine – as concerns about Europe having adequate supplies of gas
for the winter were allayed by filling levels of gas storage facilities
reaching all-time highs.

VERBUND achieved further milestones in the implementation of its strategy
in quarter 1/2023, not only in its Hydro and New renewables segments, but
also in the Grid segment. The hydropower projects (Reißeck II plus,
Limberg III, Gratkorn) are proceeding as planned. By driving the
development of new renewables in Europe, VERBUND will also help reduce
reliance on fossil fuels in the medium term and contribute to a
climate-neutral Europe. Implementation of the wind and photovoltaic
projects in Spain as well as the other projects in the international
markets were further expedited in quarter 1/2023. However, strong, stable
grids are imperative for a successful transition to clean energy, which is
why the main emphasis of our ambitious investment programme is currently
on investments in expansion of the power grids. VERBUND achieved yet
another milestone in putting Bavaria’s largest battery storage into
operation. The two storage facilities in Diespeck and Iphofen together
make up VERBUND’s North Bavaria battery storage chain with total capacity
of 42 MW and a storage volume of 48 MWh. The large-scale batteries are
deployed when the load on the distribution network is particularly high.

Green hydrogen is an important contributor to the energy transition and a
pioneering field in which VERBUND will play a vital role. With this in
mind, VERBUND signed a Memorandum of Understanding with two enterprises in
quarter 1/2023. VERBUND has now partnered with Saudi energy company
ACWA Power to explore joint projects for green hydrogen. In addition,
VERBUND inked an agreement with Masdar (UAE) with the objective of
exploring projects for production of green hydrogen for the Central
European market.

VERBUND saw an improvement in the results posted for quarter 1/2023.
EBITDA climbed by 18.7% year-on-year to €967.3m. The reported Group result
rose by 2.8% to €529.0m and the Group result after adjustment for
non-recurring effects was up 14.1%. At 0.93, the hydro coefficient for the
run-of-river power plants was 1 percentage point below the prior-year
figure and 7 percentage points lower than the long-term average. By
contrast, generation from annual storage power plants rose by 13.5% in
quarter 1/2023 compared with the prior-year reporting period. Generation
from hydropower plants thus increased by 121 GWh to 6,089 GWh. The sharp
rise in wholesale electricity prices on the futures markets that were
relevant for the reporting period gave earnings a considerable boost.
Prices on the spot markets declined in quarter 1/2023. Consequently, the
average sales price obtained for our own generation from hydropower rose
by €88.9/MWh to €202.8/MWh. Higher generation from photovoltaic
installations and wind power plants, especially from the plants put into
operation in Spain, also had a positive effect. This stood in contrast to
the negative effect caused by a significant decrease in thermal generation
and the negative earnings contribution from the Sales segment attributable
to high procurement costs, among other factors. The taxation of the
windfall revenues of inframarginal power generators in Austria and Germany
from December 2022 and corresponding windfall profits in Romania
additionally had a negative impact on the Group’s result.

Earnings forecast for 2023 adjusted

Based on expectations of average levels of own generation from hydropower,
wind power and photovoltaic production in quarters 2–4/2023 as well as the
opportunities and risks identified, VERBUND expects EBITDA of between
around €3,700m and €4,300m and a reported Group result of between around
€2,000m and €2,400m in financial year 2023. VERBUND’s planned dividend
payout ratio for 2023 is between 45% and 55% of the Group result of
approximately €2,000m to €2,400m, after adjusting for non-recurring

The earnings forecast and the information on the expected payout ratio are
contingent on VERBUND not being impacted further by possible energy policy
measures to skim off some of the profits at energy companies.

  Unit Q1/2022 Q1/2023 Change
Revenue €m 2,531.9 3,262.7 28.9%
EBITDA €m 814.9 967.3 18.7%
Operating result €m 705.7 841.4 19.2%
Group result €m 514.4 529.0 2.8%
Earnings per share € 1.48 1.52 2.8%
EBIT margin % 27.9 25.8 –
EBITDA margin % 32.2 29.6 –
Cash flow from operating activities €m 209.2 1,363.7 –
Free cash flow before dividends €m –105.1 1,160.5 –
Free cash flow after dividends €m –105.1 1,160.5 –
Performance of VERBUND shares % –3.4 1.7 –
Gearing % 60.7 27.5 –


Additional information as well as the Interim Financial Report for
quarter 1/2023 is available on the website 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


11.05.2023 CET/CEST This Corporate News was distributed by EQS Group AG.


Language: English
Am Hof 6A
1010 Wien
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: 1629959

End of News EQS News Service

1629959  11.05.2023 CET/CEST



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