VERBUND AG: Results for quarter 1/2019: very positive business performance due to good water supply and higher sales prices
May 08, 2019 at 02:10 am EDT
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DGAP-News: VERBUND AG / Key word(s): Quarter Results/Interim Report
VERBUND AG: Results for quarter 1/2019: very positive business performance due to good water supply and higher sales prices
08.05.2019 / 07:59
The issuer is solely responsible for the content of this announcement.
The first quarter of 2019 was characterised by surging sales prices, above-average water supply levels and additional strategic preparations for strengthening VERBUND's renewable generation portfolio. The positive energy market climate and good operating environment lead to sharp increases in earnings and a considerable improvement in the Group's key performance indicators. The upward trend was underpinned by the lower cost base and further reductions in the Group's debt levels resulting from numerous measures implemented in the past. Strategically positioned as a producer of renewable, largely carbon-free electricity with a stable, regulated high-voltage grid and an innovative, customer-centric sales organisation, VERBUND benefits from a solid basis for future growth.
EBITDA increased by 28.9% to EUR348.0m in quarter 1/2019 and the Group result was up 46.5% on the previous year's figure to EUR178.1m. Earnings benefitted significantly from the sharp rise in average sales prices resulting from higher prices on the futures and spot markets for wholesale electricity. The hydro coefficient for the run-of-river power plants came to 1.21, or 4 percentage points above the prior-year figure and 21 percentage points above the long-term average. Another positive factor was the higher earnings contribution from the Grid segment and the good results achieved through the programmes implemented in recent years to reduce costs and increase efficiency. Revenue from flexibility products declined substantially compared with quarter 1/2018, mostly due to lower income from congestion management.
Earnings outlook for 2019 adjusted
Based on expectations of average levels of own generation from hydropower and wind power in quarters 2-4/2019, EBITDA of between approximately EUR1,100m and EUR1,200m and a Group result of between approximately EUR470m and EUR540m in financial year 2019 are forecast. VERBUND is planning a dividend payout ratio of between 40% and 45% of the Group result for financial year 2019 after adjustment for non-recurring effects.
KPIs
Unit
Q1/2018
Q1/2019
Change
Revenue
EURm
748.4
963.2
28.7%
EBITDA
EURm
270.0
348.0
28.9%
Operating result
EURm
188.1
258.3
37.3%
Group result
EURm
121.6
178.1
46.5%
Earnings per share
EUR
0.35
0.51
46.5%
EBIT margin
%
25.1
26.8
-
EBITDA margin
%
36.1
36.1
-
Cash flow from operating activities
EURm
298.5
379.8
27.2%
Free cash flow after dividends
EURm
240.9
305.6
26.9%
Performance of VERBUND shares
%
17.2
14.9
-
Gearing
%
44.1
38.1
-
Additional information as well as the Interim Financial Report for quarter 1/2019 is available at www.verbund.com > Investor Relations > Latest financial results.
Contact:
Andreas Wollein
Head of Group Finance, M&A and Investor Relations
T.: +43 (0)5 03 13 - 52604
F.: +43 (0)5 03 13 - 52694
mailto:investor-relations@verbund.com
08.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
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Verbund AG is Austria's leading producer and supplier of electricity. Net sales break down by activity as follows:
- production and sale of electricity (84.5%): 63.4 TWh sold in 2022 (of which primarily 30.7 TWh in Austria, 27.5 TWh in Germany and 4.4 TWh in France). At the end of 2022, the group had 163 hydraulic plants, 163 wind parks, 4 solar parks and 2 thermal plants;
- electricity transportation (12.7%): operation of a high-voltage electrical network of 6,959 km;
- other (2.8%): consult engineering, consulting, telecommunications and tourism services, etc.
VERBUND AG 
