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VERBUND AG — Earnings Release 2014
Jan 22, 2015
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VERBUND AG / Keyword(s): Change in Forecast/Forecast
VERBUND AG: Verbund raises earnings forecast and dividend for 2014
Ad hoc announcement transmitted by DGAP – a service of EQS Group AG. The
issuer is solely responsible for the content of this announcement.
VERBUND AG's management announced today that the earnings forecast for
financial year 2014 is being raised. VERBUND expects EBITDA of around
EUR800m (previous forecast: EUR770m) and a Group result of around EUR125m
(previous forecast: EUR85m) in financial year 2014. The planned dividend
continues to be based on a payout ratio of approximately 50% of the
adjusted Group result which in 2014 will be around EUR210m (previous
forecast: EUR190m).
This adjustment of the earnings forecast is mainly attributable to the
following:
- Better water supply and increased use of storage power plants in
quarter 4/2014
At 1.16, water supply in quarter 4/2014 was significantly above the
long-term average. The hydro coefficient for financial year 2014 was
therefore 1.02. In the old forecast, assumptions for quarter 4/2014 were
based on an average water supply. In addition, due to market conditions,
more use was made of storage power plants in quarter 4/2014 than had been
planned. The positive effect on EBITDA was around EUR45m and around EUR25m
on the Group result.
- Effects from impairment tests and from the thermal segment
As part of the preparation of the Group's annual financial statements, in
addition to the changed energy parameters, also the WACC for impairment
tests was updated and adjusted to reflect the lower interest rate level.
This resulted overall in a reversal of impairment losses in the power plant
segment. In addition, effects especially in the thermal segment had a
negative influence. EBITDA decreased overall by around EUR25m and the
Group result improved by around EUR10m.
- Cost savings higher than planned
The continued, systematic implementation of the cost savings program has
led to positive effects on the result which were higher than planned, with
Group result improving on the previous forecast by around EUR5m. The cost
savings of EUR130m that were originally planned up to 2015 will therefore
definitely be exceeded.
Further details on the 2014 annual result will be announced as planned as
part of the publication of results on 11 March 2015.
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]
22.01.2015 The DGAP Distribution Services include Regulatory Announcements,
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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: [email protected]
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Wien (Amtlicher Handel / Official Market)
End of Announcement DGAP News-Service