Adhoc: VERBUND result for quarter 1/2014: difficult market environment impacts result

5/7/2014Vienna

The difficult economic environment for VERBUND continued to worsen in the first quarter. The level of wholesale prices for electricity has further declined. Three factors in particular are responsible: excessive subsidies for new renewable energy sources, excess capacities in the European electricity market and the non-functioning CO2 market in Europe. Neither the stabilisation of emission trading in the form of “backloading” resolved by the EU nor the planned reform of the green energy subsidies in Germany suffice to improve the energy market environment.

The operating business was characterised by a below-average water supply from rivers in quarter 1/2014. The hydro coefficient of 0.93 was 7.0% below the long-term average and 27 percentage points below the previous year’s level. Generation from hydropower consequently fell by 1,077 GWh. In total, VERBUND’s own generation of 6,544 GWh in quarter 1/2014 was 22.9% lower than in the first quarter of the previous year. The negative operating environment is also reflected in falling average contract prices. Thus, EBITDA fell significantly by 33.9% to €207.1m and the Group result of €40.9m for the first quarter was down 46.8% year-on-year.

Outlook for 2014 confirmed 

Based on average own generation from hydropower, we expect EBITDA for financial year 2014 to be approximately €850m and the Group result to be approximately €150m. A payout ratio of around 50% of the Group result after adjustment for non-recurring effects is planned for 2014.

Kennzahl Einheit Q1/2013* Q1/2014* Veränderung in %
Umsatzerlöse Mio. € 861.6 680.4 -21.0
EBITDA Mio. € 313.4 207.1 -33.9
Operatives Ergebnis Mio. € 233.9 110.7 -52.7
Konzernergebnis Mio. € 77.0 40.9 -46.8
Ergebnis je Aktie 0.22 0.12 -46.8
EBIT-Marge % 27.1 16.3
EBITDA-Marge % 36.4 30.4
Cashflow aus operativer Tätigkeit Mio. € 285.7 174.6 -38.9
Free Cashflow Mio. € 326.3 1.4
Nettoverschuldungsgrad % 61.4 66.5

Since 1 January 2014, IFRS 11 “Joint Arrangements” has replaced the previous rules under IAS 31 “Interests in Joint Ventures”. As a result of the new rules, the interest in Ennskraftwerke Aktiengesellschaft is to be classified as a joint operation. Thus, already reported figures were adjusted.

Although the result attributable to the French CGGTs is to be presented separately from continuing operations in accordance with IFRS 5, to enhance comparability the key figures relate to the combined result from the Group’s continuing and discontinued operations.

Contact

Andreas Wollein Andreas Wollein

Head of Group Finance, M&A and Investor Relations

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