The listed group earned more in the first three quarters, but now expects less profit for this year than last assumed. The poor water supply in the third quarter and the EU measures to siphon off profits from energy companies have resulted in an adjustment to the earnings outlook. The reported group result is now expected to be between around 1.53 and 1.88 billion euros, the EBITDA between around 2.8 and 3.3 billion euros, as announced by the association.
Previously, in the summer, Verbund had assumed EBITDA of EUR 3.0 to 3.5 billion and reported consolidated earnings of between around EUR 1.68 and 2.03 billion. Verbund is planning a regular dividend based on a payout ratio of between 45 percent and 55 percent, based on the consolidated result adjusted for one-off effects of between around 1.45 and 1.8 billion euros, as the energy group also announced. In addition, as reported, the Management Board has approved a special dividend of EUR 400 million.
In the first three quarters, Verbund increased its profits due to high wholesale electricity prices, although the weak water supply due to the dry summer had a counteracting effect. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 68.0 percent to 1.93 billion euros, the consolidated result by 81.4 percent to 1.065 billion euros. Adjusted for non-recurring effects of EUR 82.6 million, consolidated profit increased by 73.5 percent to EUR 982.6 million. Verbund generation from run-of-river power was well below average in the third quarter, the generation coefficient was 0.75 percent and was well below the long-term average, especially in July (0.71) and August (0.69).
In the first three quarters, the coefficient was 0.84. The lower electricity production from hydropower also meant that high electricity purchases were necessary in order to be able to supply the electricity volumes that had already been sold, as the association announced. Due to market conditions, these buybacks sometimes had to be carried out at extraordinarily high prices and thus had an additional impact on the result. Another challenge was the margining payments for hedging transactions in the electricity business, which have to be deposited with the exchange’s clearing house as collateral for open positions. Thanks to its forward-looking financial planning, the very good credit rating and the timely increase in credit lines, Verbund has mastered this challenge without any negative effects. Valuation effects from hedging transactions customary in the energy sector, mainly for own power generation, had a significantly negative impact on the result. According to Verbund, these effects will essentially be offset in subsequent periods with the realization of the underlying transactions.
Source: Nachrichten
