EBITDA increased by 6.5% to €227.5m, the operating result rose by 9.2% year on year to €141.3m and the Group result was up by 13.4% to €93.5m. The hydro coefficient representing the water supply from rivers was 0.92, which is 8% below the long-term average and below the level of quarter 1/2016. Generation from hydropower therefore decreased by 372 GWh. At 6,836 GWh, VERBUND’s total own generation was 2.0% higher than in the first quarter of the previous year as a result of the significant increase in thermal generation and higher generation from wind power. The average sales prices for electricity were slightly below the level of quarter 1/2016. At an average of €26.6/MWh, prices for electricity futures contracts applicable to financial year 2017 (front-year base 2017 traded in 2016) were down 14.2% on the prior-year average. Spot market prices (base price) increased by 63.3% to €41.3/MWh in the reporting period. The positive income trend is primarily attributable to higher revenue from flexibility products, particularly those for congestion management.
Outlook for 2017
Given the better-than-expected income trend in quarter 1/2017, we have raised our earnings forecast for the year as a whole. Assuming an average water supply and average wind conditions in quarters 2–4/2017, VERBUND expects to generate EBITDA of approximately €830m (previously around €800m) and a Group result of around €300m (previously around €280m).