AI assistant
VERBUND AG — Earnings Release 2016
Jul 18, 2016
Preview isn't available for this file type.
Download source fileVERBUND AG / Key word(s): Change in Forecast/Dividend
18.07.2016 12:03
Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Today, the management of VERBUND AG announced an increase in the earnings
projection for financial year 2016. Based on updated planning and on the
basis of average water supply as well as average wind conditions in the
second half-year, VERBUND will generate EBITDA of approximately EUR840m
(previous forecast: EUR750m) and a Group result of approximately EUR270m
(previous forecast: EUR230m) in 2016. The adjusted Group result for 2016
will amount to around EUR290m (previous forecast: EUR230m). The adjustment
of the earnings projection is attributable to cost savings from
restructuring measures, higher profit in the Grid segment and improvements
in the electricity business.
With this ad hoc disclosure, we are also informing the public about the key
points of the new programme to reduce costs and increase efficiency:
besides the reduction in expenses and efficiency improvements, the measures
under this programme also include a further reduction of approx. 175 jobs
by 2020. In this way, we will essentially maintain the 2015 cost level
until 2019 regarding personnel- and other operating expenses. Thereby,
future cost increases can be absorbed. In addition, capital expenditure for
growth and maintenance for the 2016-2019 period will be reduced from
EUR1.5bn to EUR1.0bn. In this way, VERBUND is focusing on improving free
cash flow significantly and further reducing debt.
In connection with this, the previous long-term dividend policy will be
amended. Around 30% of the Group result after adjustment for non-recurring
effects will be paid out for financial year 2016. The payout ratio for
financial year 2017 is expected to be announced in March 2017 during
publication of the figures for financial year 2016.
Additional details will be provided during the publication of the 2016
half-year results on 28 July 2016.
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]
18.07.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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