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VERBUND AG
Earnings Release • Nov 4, 2021
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Earnings Release
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News Details
Corporate | 4 November 2021 08:00
VERBUND AG: Results for quarters 1-3/2021: encouraging results due to positive energy market environment
EQS Group-News: VERBUND AG / Key word(s): Quarter Results/9 Month figures
04.11.2021 / 08:00
The issuer is solely responsible for the content of this announcement.
The energy market environment for the development of our business continued to present a very positive picture in the reporting period. Prices for primary energy sources in particular rose sharply in quarters 1-3/2021. Below-average gas storage inventories, unfavourable weather conditions and interruptions to supply in an environment in which demand was recovering from the COVID-19 lows were driving forces behind the substantial increase in natural gas and coal prices worldwide. China, too, was asking for more liquefied natural gas (LNG). Prices for European CO 2 emission rights likewise increased significantly at the same time, thus also pushing up wholesale electricity prices in Europe, which are fuelled by primary energy prices and prices for CO 2 emission rights. Wholesale electricity prices in Europe are a key value driver of VERBUND’s business performance.
VERBUND’s share price also benefited from this positive market environment, reaching a new all-time high of €95.55 on 14 September 2021. VERBUND’s market capitalisation on this date hence amounted to around €33.2bn.
The results posted by VERBUND for quarters 1-3/2021 were very encouraging. EBITDA increased by 16.3% to €1,150.6m, while the Group result rose by 23.0% to €587.4m. The adjusted Group result increased by 20.9% to €566.2m. At 0.99, the hydro coefficient for the run-of-river power plants was 1 percentage point below the long-term average and 1 percentage point above the comparative prior-year figure. Generation from annual storage power plants fell by as much as 10.7% in quarters 1-3/2021 due to reduced turbining. Generation from hydropower thus decreased by a total of 589 GWh compared with the prior-year reporting period. However, the significant increase in short-term wholesale electricity prices gave a boost to earnings – unlike futures market prices, which declined in the period under review. Consequently, the average sales price obtained for our own generation from hydropower rose by €7.4/MWh to €51.3/MWh. The full consolidation of Gas Connect Austria GmbH also resulted in a positive contribution to earnings (full consolidation as at 31 May 2021).
Forecast for 2021
Based on expectations of average own generation from hydropower and wind power in quarter 4/2021 and the opportunities and risks identified, VERBUND currently expects EBITDA of between around €1,490m and €1,590m and a Group result of between around €740m and €810m in financial year 2021. VERBUND’s planned payout ratio for 2021 is between 45% and 55% of the Group result of between around €720m and €790m, after adjustment for non-recurring effects.
| KPIs | ||||
| Unit | Q1-3/2020 | Q1-3/2021 | Change | |
| Revenue | €m | 2,522.7 | 1,790.6 | -29.0% |
| EBITDA | €m | 989.5 | 1,150.6 | 16.3% |
| Operating result | €m | 692.9 | 843.6 | 21.8% |
| Group result | €m | 477.7 | 587.4 | 23.0% |
| Earnings per share | € | 1.38 | 1.69 | 23.0% |
| EBIT margin | % | 27.5 | 47.1 | – |
| EBITDA margin | % | 39.2 | 64.3 | – |
| Cash flow from operating activities | €m | 852.3 | 510.6 | -40.1% |
| Free cash flow after dividends | €m | 135.8 | -595.8 | – |
| Performance of VERBUND shares | % | 4.3 | 25.6 | – |
| Gearing | % | 29.7 | 41.9 | – |
Additional information as well as the Interim Report for quarters 1-3/2021 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
mailto:[email protected]
04.11.2021 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: | [email protected] |
| Internet: | www.verbund.com |
| ISIN: | AT0000746409 |
| WKN: | 877738 |
| Indices: | ATX |
| Listed: | Foreign Exchange(s) Vienna Stock Exchange (Official Market) |
| EQS News ID: | 1246081 |
| End of News | EQS Group News Service |