EQS-News: VERBUND AG: results for quarters 1–2/2022: Positive income trend fuelled by increase in wholesale prices for electricity
EQS-News: VERBUND AG: results for quarters 1–2/2022: Positive income trend fuelled by increase in wholesale prices for electricity
EQS-News: VERBUND AG / Key word(s): Half Year Results
VERBUND AG: results for quarters 1–2/2022: Positive income trend fuelled
by increase in wholesale prices for electricity
28.07.2022 / 07:58
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
Geopolitical tensions, the ongoing war in Ukraine, record inflation and
expectations of interest rate hikes continued to dominate the landscape in
quarter 2/2022. The difficult economic climate caused significant
distortion in Europe’s energy markets as well as sharp increases and
volatility in energy prices. Changes in gas supply volumes and a change in
the off-take structure were especially noticeable in the development of
gas prices. As a consequence of the surge in global market prices for
primary energy and the high cost of emission allowances, Europe also
witnessed a rise in wholesale prices for electricity.
The current trend in the international energy markets is a stark reminder
of the urgent need to expand renewable electricity generation and also
enlarge grids and storage facilities. The spotlight is on fossil fuel
phase-out, and VERBUND is making a valuable contribution to this
endeavour. In pursuing its 2030 strategy, VERBUND will invest heavily, not
only in its traditional core business of hydropower and power grids, but
also in the expansion of renewable generation and the development of
Europe’s hydrogen economy. We will invest around €363m in hydropower
operations in 2022, primarily in the Limberg III, Reißeck II plus and
Töging projects. Capital spending on our electricity network will come in
at around €354m in 2022, the largest projects being the 380-kV Salzburg
line and the Reschenpass project. VERBUND is thus making an important
contribution to ensuring security of supply in Austria.
The ongoing war in Ukraine and its repercussions for the utilities sector
put a damper on the performance of VERBUND shares in quarters 1–2/2022.
Trading at a closing price of €93.4 as at 30 June 2022, VERBUND shares
recorded a loss of 5.6% in quarters 1–2/2022 against year-end 2021, which
meant that the stock far outperformed the Austrian benchmark index ATX
(–25.4%) and the sector index STOXX Europe 600 Utilities (–13.2%).
VERBUND saw a significant improvement in the results posted for
quarters 1–2/2022. EBITDA climbed by 110.5% to €1,378.9m. The Group result
soared by 151.8% to €817.1m compared with the same period of the previous
year. The hydro coefficient for the run-of-river power plants dropped to
0.90, or 6 percentage points below the prior-year figure and 10 percentage
points below the long-term average. Generation from the annual storage
power plants rose by 18.7% in quarters 1–2/2022 compared with the
prior-year reporting period. Generation from hydropower thus fell by a
total of 455 GWh. The sharp increase in wholesale electricity prices on
the futures and spot markets gave a significant boost to earnings. The
average sales prices obtained for VERBUND’s own generation from hydropower
rose by €65.9/MWh to €112.5/MWh. The consolidation of Gas Connect
Austria GmbH, the regulated gas transmission and distribution system
operator in Austria acquired with effect from 31 May 2021, and the
significantly higher contribution from flexibility products also had a
positive effect. The Group result for quarters 1–2/2022 was influenced by
non-recurring effects of €82.6m (Q1–2/2021: €9.3m). Adjusted for these
non-recurring effects, the Group result rose by 133.0% to €734.5m.
Outlook for 2022
Based on average own generation from hydropower, wind power and
photovoltaic production in quarters 3–4/2022 and the opportunities and
risks identified, VERBUND expects EBITDA of between approximately €3,000m
and €3,500m and a reported Group result of between approximately €1,680m
and €2,030m in financial year 2022. VERBUND is also planning a payout
ratio for 2022 of between 45% and 55% of the Group result of between
around €1,600m and €1,950m, after adjustment for non-recurring effects.
The earnings forecast and the information on the expected payout ratio are
contingent on VERBUND not being impacted by possible energy policy
measures to skim off some of the profits at energy companies.
Furthermore, the Executive Board of VERBUND AG has resolved to propose to
the 2023 Annual General Meeting that on the basis of the strong business
performance a special dividend of €400m be paid in addition to the regular
dividend. Distribution of the dividends must be approved by the
Supervisory Board at the meeting at which the annual financial statements
are to be approved and also requires the approval of the shareholders of
VERBUND AG at the 2023 Annual General Meeting.
KPIs
Unit Q1–2/2021 Q1–2/2022 Change
Revenue €m 1,724.3 4,731.8 174.4%
EBITDA €m 654.9 1,378.9 110.5%
Operating result €m 459.1 1,184.2 157.9%
Group result €m 324.5 817.1 151.8%
Earnings per share € 0.93 2.35 151.8%
EBIT margin % 26.6 25.0 –
EBITDA margin % 38.0 29.1 –
Cash flow from operating activities €m 426.4 920.3 115.8%
Free cash flow before dividends €m –141.5 366.9 –
Free cash flow after dividends €m –473.1 –111.0 –
Performance of VERBUND shares % 11.2 –5.6 –
Gearing % 38.7 67.0 –
Additional information as well as the Interim Financial Report for
quarters 1–2/2022 is available 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
══════════════════════════════════════════════════════════════════════════
28.07.2022 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: 1407609
End of News EQS News Service
1407609 28.07.2022
OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS. www.ots.at
© Copyright APA-OTS Originaltext-Service GmbH und der jeweilige Aussender