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VERBUND AG — Earnings Release 2016
May 4, 2016
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VERBUND AG / Keyword(s): Quarter Results/Interim Report
VERBUND AG: VERBUND results for quarter 1/2016: positive income trend
despite persistently difficult operating environment
Ad hoc announcement transmitted by DGAP – a service of EQS Group AG. The
issuer is solely responsible for the content of this announcement.
Conditions in the European electricity market continued to worsen during
quarter 1/2016. One of the main factors impacting VERBUND's income trend is
the price of wholesale electricity on the EEX, the German electricity
exchange. These prices saw another dramatic decline from their already
historically low level at the end of 2015/beginning of 2016. The decrease
in the price of wholesale electricity was attributable to lower prices for
coal and an additional drop in CO2 prices on the global markets.
The strategic focus of VERBUND in quarter 1/2016 was on continuing to
systematically implement our strategy. This included increasing the
regulated portion of the Group's asset portfolio and strengthening our
customer-focused business in energy-related services and products.
The Group's income trend for quarter 1/2016 was positive. The operating
result increased by 4.5%, and EBITDA declined only slightly, with a
decrease of 2.0% to EUR213.5m compared with the previous year. The hydro
coefficient representing the water supply from rivers was 1.00, which is
equivalent to the long-term average, and 3 percentage points below the
level of quarter 1/2015. Generation from hydropower therefore decreased by
212 GWh. Due to the significantly lower level of thermal generation,
VERBUND's own generation decreased by 10.0% compared with quarter 1/2015 to
a total of 6,705 GWh. The difficult operating environment in the energy
market was reflected in lower average sales prices. However, higher
earnings in the Grid segment in particular and lower expenses thanks to the
programmes to reduce costs were able to compensate for the negative
effects. The Group result amounted to EUR82.4m, a rise of 29.9% over the
prior-year comparative. The increase was primarily attributable to the
improvement in the financial result, which was due in particular to bond
repayments in 2015.
Outlook for 2016 confirmed
On the basis of average own generation from hydropower, we expect EBITDA of
approximately EUR750m and a Group result of approximately EUR230m for
financial year 2016.
KPIs
Unit Q1/2015 Q1/2016 Change
Revenue EURm 727.2 806.3 10.9 %
EBITDA EURm 217.8 213.5 -2.0 %
Operating result EURm 123.8 129.4 4.5 %
Group result EURm 63.4 82.4 29.9 %
Earnings per share EUR 0.18 0.24 29.9 %
EBIT margin % 17.0 16.1 -
EBITDA margin* % 30.0 26.5 -
Cash flow from operating activities EURm 166.1 265.8 60.0%
Free cash flow after dividends EURm 266.3 216.5 -18.7%
Gearing % 72.1 62.4 -
- The comparative figures have been adjusted retrospectively in accordance
with IAS 8.
Further information and the interim financial report for quarter 1/2016 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]
04.05.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and 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