VERBUND AG 
DGAP-News: VERBUND AG / Key word(s): Quarter Results
VERBUND AG: Results for quarter 1/2021: earnings down slightly due to lower water supply
2021-05-12 / 07:58
The issuer is solely responsible for the content of this announcement.
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The energy market environment, which is vitally important for our business, continued to improve in recent months in
spite of the COVID-19 crisis. Wholesale electricity prices, one of the main value drivers of VERBUND's business
performance, increased on the back of rising prices for CO[2] emission rights, which are being pushed up by the strong
commitment of the EU member states to achieving comprehensive decarbonisation of the energy system. This favourable
development underpins VERBUND's business model and will allow us to implement an ambitious and sustainable investment
programme over the next three years. The investments will focus on further strengthening the Austrian high-voltage grid
- a key prerequisite for decarbonisation of the energy system in Austria and Europe - as well on further expanding
domestic hydropower generation and building up new renewable electricity production. VERBUND is also moving into new
fields of application that will play an important role in the successful implementation of the energy transition over
the coming years. Some examples are the development of a green hydrogen system, the advancement of electromobility and
the development of storage systems.
The performance of VERBUND shares in quarter 1/2021 was impacted not only by the protracted COVID-19 crisis but in
particular by high inflows and outflows in exchange traded funds (ETFs) in connection with clean energy and a major
index reweighting in the S&P Global Clean Energy Index. After reaching their high in early February, the shares
experienced a correction which lasted until the beginning of March, followed by a volatile sideways movement until the
end of the quarter. VERBUND shares ended quarter 1/2021 trading at EUR62.0, down 11.2% compared with year-end 2020.
VERBUND's earnings figures for quarter 1/2021 were down slightly, due mainly to a year-on-year drop in production of
electricity from hydropower attributable to a lower water supply. EBITDA decreased by 8.6% to EUR302.7m, and the Group
result fell by 7.6% to EUR144.7m. The hydro coefficient for the run-of-river power plants in quarter 1/2021 came to 0.99,
which is 1 percentage point below the long-term average and 10 percentage points below the year-ago figure. Generation
from annual storage power plants also decreased substantially in quarter 1/2021 due to market conditions. Overall,
generation from hydropower was down 11.2% on the previous year's level. However, the marked increase in wholesale
electricity prices on the spot markets gave a boost to earnings - unlike futures market prices, which declined in the
relevant period. The average sales price for our own generation from hydropower increased by EUR1.7/MWh to EUR47.6/MWh.
Outlook for 2021 adjusted
Based on expectations of average own generation from hydropower and wind power in quarters 2-4/2021 and the
opportunities and risks identified, VERBUND currently expects EBITDA of between around EUR1,130m and EUR1,300m and a Group
result of between around EUR480m and EUR590m in financial year 2021. Financial effects from the planned acquisition of the
51% stake in Gas Connect Austria GmbH are not included in this earnings forecast. VERBUND's planned payout ratio for
2021 is between 45% and 55% of the Group result of between around EUR480m and EUR590m, after adjustment for non-recurring
effects.
KPIs
Unit Q1/2020 Q1/2021 Change
Revenue EURm 1,257.3 674.1 - 46.4%
EBITDA EURm 331.0 302.7 - 8.6%
Operating result EURm 236.2 207.9 - 12.0%
Group result EURm 156.5 144.7 - 7.6%
Earnings per share EUR 0.45 0.42 - 7.6%
EBIT margin % 18.8 30.8 -
EBITDA margin % 26.3 44.9 -
Cash flow from operating activities EURm 298.2 203.7 - 31.7%
Free cash flow before dividend EURm 150.2 35.3 - 76.5%
Free cash flow after dividend EURm 150.2 35.3 - 76.5%
Performance of VERBUND shares % - 26.2 - 11.2 -
Gearing % 30.7 26.4 -
Additional information as well as the Interim Report for quarter 1/2021 is available on the website 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:investor-relations@verbund.com -----------------------------------------------------------------------------------------------------------------------
2021-05-12 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. 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: 0043-1-53113-52604
Fax: 0043-1-53113-52694
E-mail: investor-relations@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Foreign Exchange(s) Vienna Stock Exchange (Official Market)
EQS News ID: 1195515
End of News DGAP News Service
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May 12, 2021 01:59 ET (05:59 GMT)
