VERBUND AG publishes outlook for 2014
VERBUND AG is publishing the outlook for financial year 2014 due to significant deviations from the consensus in the market.
VERBUND AG’s management expects the current negative market environment for utilities in Europe to persist in 2014. This market environment is characterised by wholesale electricity prices which continue to fall as a result of massive overcapacity in electricity generation, an oversubsidisation of renewable energy and a non-functioning CO2 market. Pressure on the profitability of gas power plants will remain high.
On the basis of its current planning, the company is expecting to achieve EBITDA of around €850m and a Group result of around €150m in financial year 2014. The dividend planned for financial year 2014 will be based on a payout ratio of approximately 50% of the adjusted Group result.
VERBUND AG’s Executive Board will provide further information as part of the publication of the results for 2013 on 5 March 2014.