VERBUND AG — Earnings Release 2012

Jul 25, 2012

News Details

Ad-hoc | 25 July 2012 08:00

VERBUND AG: Q1-2/2012: results improved despite persistently difficult market and industry environment

VERBUND AG / Key word(s): Half Year Results/Half Year Results

25.07.2012 08:00

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VERBUND, Austria's leading electricity company, presents improved results
for quarters 1-2/2012 despite the persistently difficult market and
industry environment.

Key figures
Unit Q1-2/2012 Q1-2/2011 Change
Revenue EURm 1,562.8 1,460.0 7.0%
Operating result EURm 434.7 388.7 11.9%
Return on sales (ROS; EBIT margin) % 27.8 26.6 -
EBITDA EURm 622.9 505.1 23.3%
EBITDA margin % 39.9 34.6 -
Group result EURm 198.2 176.3 12.4%
Earnings per share EUR 0.57 0.51 12.4%
Cash flow from operating
activities EURm 440.4 491.7 -10.4%
Gearing % 89.7 103.4 -

Increased operating result and Group result
The operating result increased by 11.9% to EUR434.7m. The main reason for
this was the 26.8% increase in electricity generated from hydropower. At
1.09, the hydro coefficient of the run-of-river power plants was 9.0% above
the long-term average. Generation from annual storage power plants also
increased significantly (+34.0%). However, generation from thermal power
plants decreased by 348 GWh. Overall, at 17,096 GWh, VERBUND's own
generation in quarters 1-2/2012 was 2,823 GWh higher than in quarters
1-2/2011. In addition, VERBUND benefited from higher sales prices: at an
average of EUR56.0/MWh, electricity prices applicable for the 2012
financial year which were traded in 2011 with future market contracts
('Year Base 2012') were up 12.3% over the 2010 level. As a result of its
hedging strategy, VERBUND already included around 60% of its own generation
in its 2011 price calculation over the future market. In contrast, spot
market prices fell in quarters 1-2/2012 by 18.9% to EUR42.8/MWh. The
ongoing difficult economic circumstances for gas power plants in Europe had
a negative impact on the operating result. Once again, an impairment loss
had to be recognised for the ultramodern Mellach CCGT, which had been
officially opened on 22 June 2012. VERBUND was also able to increase the
Group result in the first half of 2012 - by 12.4% to EUR198.2m.

Outlook for the full year
Assuming average water supply in the second half of 2012, we expect an
operating result of around EUR800m and a Group result of around EUR350m for
the entire year. However, if the conditions in the overall economy and the
energy sector in Europe continue to worsen, additional negative effects on
earnings in the second half of 2012 cannot be ruled out. Our dividend
policy will aim for a payout ratio of approximately 50% of the Group
result.

Please find further information and the interim report quarters 1-2/2012 at
www.verbund.com

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:investor@verbund.com

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Language: English
Company: VERBUND AG
Am Hof 6A
1010 Wien
Austria
Phone: 0043-1-53113-52616
Fax: 0043-1-53113-52694
E-mail: investor@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

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