VERBUND AG: Results for quarters 1-3/2019: Strong earnings performance increases the Group's strategic flexibility and confirms VERBUND's strategy
November 06, 2019 at 02:05 am EST
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DGAP-News: VERBUND AG
/ Key word(s): 9 Month figures/Quarterly / Interim Statement
VERBUND AG: Results for quarters 1-3/2019: Strong earnings performance increases the Group's strategic flexibility and confirms VERBUND's strategy
06.11.2019 / 08:00
The issuer is solely responsible for the content of this announcement.
Developments in the energy market were favourable for VERBUND in quarters 1-3/2019. Against a backdrop of rising wholesale prices for electricity, increasing volatility in electricity grids and a clear trend towards renewable energy, the Group's strategic positioning is paying off. The Group consequently turned in a very satisfactory performance, recording a marked improvement in its results of operations and management KPIs and continuing its successful debt reduction. The solid strategic foundation combined with strong performance will give the Group greater flexibility for leveraging opportunities for growth in the market and will also increase its resilience to economic downturns.
The higher prices on the futures markets for wholesale electricity compared with the prior-year period led to higher average sales prices and contributed significantly to the favourable earnings performance. Earnings for quarters 1-3/2019 were also lifted by increased generation from hydropower and wind power as well as by higher output from thermal power plants. With a hydro coefficient of 1.02, the water supply in rivers was 2 percent above the long-term average and 6 percentage points above the level in quarters 1-3/2018. Generation from the annual storage power plants rose by 0.8%. Output from hydropower plants therefore increased by 1,372 GWh. Earnings also benefited from a higher earnings contribution from the Grid segment due to additional temporary revenue and the good results achieved through the programmes implemented in recent years to reduce costs and increase efficiency. By contrast, revenue from flexibility products declined year-on-year.
EBITDA rose by 39.5%, from EUR678.4m to EUR946.1m. The reported Group result increased by 59.5%, rising from EUR282.8m to EUR450.9m. The Group result after adjustment for non-recurring effects climbed by 63.3% from EUR277.6m to EUR453.3m. A significant improvement was also seen in the cash flow from operating activities, which rose by as much as 64.9% to EUR893.8m and is being used to further reduce the Group's debt.
Outlook for 2019 adjusted
Assuming an average water supply and an average wind supply in quarter 4/2019, and in light of the opportunities and risks identified, we expect EBITDA to amount to between approximately EUR1,190m and EUR1,240m and the Group result to between approximately EUR540m and EUR580m for financial year 2019. 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
Q1-3/2018
Q1-3/2019
Change
Revenue
EURm
2,080.7
2,663.6
28.0%
EBITDA
EURm
678.4
946.1
39.5%
Operating result
EURm
439.9
675.9
53.6%
Group result
EURm
282.8
450.9
59.5%
Earnings per share
EUR
0.81
1.30
59.5%
EBIT margin
%
21.1
25.4
-
EBITDA margin
%
32.6
35.5
-
Cash flow from operating activities
EURm
542.1
893.8
64.9%
Free cash flow after dividends
EURm
210.9
451.8
114.2%
Performance of VERBUND shares
%
110.6
34.8
-
Gearing
%
46.3
36.0
-
Additional information as well as the Interim Financial Report for quarters 1-3/2019 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
06.11.2019 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 
