Corporate news: VERBUND results for quarters 1–2/2019
A surge in earnings strengthens VERBUND and increases the Group’s strategic flexibility
Higher prices on the futures and spot markets for wholesale electricity than in the prior-year period considerably pushed up average sales prices, making a substantial contribution to the very encouraging earnings trend. Earnings for quarters 1–2/2019 were also characterised by generation of higher volumes of electricity from hydropower and wind power, with a corresponding decrease in generation from thermal power plants. Water supply from rivers, which led to a hydro coefficient of 1.11, was 11 percent above the long-term average and 3 percentage points above the level for quarters 1–2/2018. By contrast, generation from annual storage power plants decreased by 8.6%. Generation from hydropower consequently increased by 231 GWh. A higher earnings contribution from the Grid segment thanks to higher revenue from auctioning off cross-border capacity and additional temporary revenue as well as the good results achieved through the programmes VERBUND has implemented in recent years to reduce costs and increase efficiency also had a positive impact on earnings. Revenue from flexibility products was down year-on-year, however, mainly due to reduced use of thermal power plants for congestion management.
Outlook for 2019
Additional information as well as the Interim Financial Report for quarters 1–2/2019 is available at www.verbund.com > Investor Relations > Latest financial results.