Interim report 2/2008: Verbund significantly increases result
29.07.2008Vienna
The financial figures of the Verbund Group are on a steep upward trend in the first half of 2008, too. Particularly as a result of increased selling figures in the European wholesale markets and the good channel flow in national rivers contributed to a significant increase in quarters 1-2 of turnover, operative results and group results of Austria's leading electricity company. The results prognosis for the overall year 2008 has also been greatly increased.
Verbund sales revenue increased by 10.6% to 1,649.2 million euros, the operative result was improved by 26.1 % to 564.2 million euros, and the group result increased by a whole 30.0 % to 429.0 million euros.
Verbund CEO Michael Pistauer: "Due to this positive result, we are also able to significantly increase the prognosis for the entire financial year: we are expecting an increase of at least 20 % in the operative result as well as the group result."
Due to the globally increasing demand for primary sources of energy, particularly crude oil and coal, the increasing costs for the construction of new power plants and the high costs of CO2 certificates, the European wholesale prices for electricity have almost doubled as compared to last year. Verbund was thus able to significantly increase its average selling prices.
Channel flow significantly above average
The high amount of precipitation in Austria in the spring led to good channel flow in national rivers. The generation coefficient in the first half of the year was 1.04 and thus 4 % higher than the average of the previous years and 17% higher than last year's value. Verbund own generation thus increased by 7.5 %, or more than 1 billion kWh.
Results prognosis increased
For the 2008 financial year, we are expecting an increase of at least 20 % in the operative result as well as the group result. In addition, a further increase of the dividend is intended for the 2008 financial year on the basis of a pay-out ratio of between 45 and 50 %.
Verbund CEO Michael Pistauer: "Due to this positive result, we are also able to significantly increase the prognosis for the entire financial year: we are expecting an increase of at least 20 % in the operative result as well as the group result."
Key figures relevant to controlling in Verbund also increased significantly in the first half of the year. The EBIT margin thus increased from 30.0 to 34.2 %, reaching an absolute leading position among European providers. Despite the new investment programme, which allocates almost 7 billion euros by 2015, the debt ratio could be further reduced, namely from 85.2 to 72.1 %. The operative cash flow, too, was improved significantly, rising from 384.3 million to 950.3 million euros. And the Economic Value Added (EVA) displayed a plus of 86.7 %.
Key figures |
Unit |
|
Q1-2/2008 |
+/- % |
| Sales revenue |
million € |
1,490.8 |
1,649.2 |
+10.6 |
| Operative result |
million € |
447.4 |
564.2 |
+26.1 |
Group result |
% |
329.9 |
429.0 |
+30.0 |
Net gearing |
million € |
85.2 |
72.1 |
+15.4 |
Operative cash flow |
million € |
384.3 |
950.3 |
+147.3 |
Crude oil and coal as price drivers
Due to the globally increasing demand for primary sources of energy, particularly crude oil and coal, the increasing costs for the construction of new power plants and the high costs of CO2 certificates, the European wholesale prices for electricity have almost doubled as compared to last year. Verbund was thus able to significantly increase its average selling prices.
Channel flow significantly above average
The high amount of precipitation in Austria in the spring led to good channel flow in national rivers. The generation coefficient in the first half of the year was 1.04 and thus 4 % higher than the average of the previous years and 17% higher than last year's value. Verbund own generation thus increased by 7.5 %, or more than 1 billion kWh.
Results prognosis increased
For the 2008 financial year, we are expecting an increase of at least 20 % in the operative result as well as the group result. In addition, a further increase of the dividend is intended for the 2008 financial year on the basis of a pay-out ratio of between 45 and 50 %.