Corporate news: VERBUND results for quarters 1-3/2021

11/4/2021Vienna

Encouraging results due to positive energy market environment

The energy market environment for the development of our business continued to present a very positive picture in the reporting period. Prices for primary energy sources in particular rose sharply in quarters 1–3/2021. Below-average gas storage inventories, unfavourable weather conditions and interruptions to supply in an environment in which demand was recovering from the COVID-19 lows were driving forces behind the substantial increase in natural gas and coal prices worldwide. China, too, was asking for more liquefied natural gas (LNG). Prices for European CO2 emission rights likewise increased significantly at the same time, thus also pushing up wholesale electricity prices in Europe, which are fuelled by primary energy prices and prices for CO2 emission rights. Wholesale electricity prices in Europe are a key value driver of VERBUND’s business performance.

VERBUND’s share price also benefited from this positive market environment, reaching a new all-time high of €95.55 on 14 September 2021. VERBUND’s market capitalisation on this date hence amounted to around €33.2bn.

The results posted by VERBUND for quarters 1–3/2021 were very encouraging. EBITDA increased by 16.3% to €1,150.6m, while the Group result rose by 23.0% to €587.4m. The adjusted Group result increased by 20.9% to €566.2m. At 0.99, the hydro coefficient for the run-of-river power plants was 1 percentage point below the long-term average and 1 percentage point above the comparative prior-year figure. Generation from annual storage power plants fell by as much as 10.7% in quarters 1–3/2021 due to reduced turbining. Generation from hydropower thus decreased by a total of 589 GWh compared with the prior-year reporting period. However, the significant increase in short-term wholesale electricity prices gave a boost to earnings – unlike futures market prices, which declined in the period under review. Consequently, the average sales price obtained for our own generation from hydropower rose by €7.4/MWh to €51.3/MWh. The full consolidation of Gas Connect Austria GmbH also resulted in a positive contribution to earnings (full consolidation as at 31 May 2021).

Forecast for 2021

Based on expectations of average own generation from hydropower and wind power in quarter 4/2021 and the opportunities and risks identified, VERBUND currently expects EBITDA of between around €1,490m and €1,590m and a Group result of between around €740m and €810m in financial year 2021. VERBUND’s planned payout ratio for 2021 is between 45% and 55% of the Group result of between around €720m and €790m, after adjustment for non-recurring effects.
KPIs Unit Q1-3/2020 Q1-3/2021 Change in %
Revenue €m 2,522.7 1,790.6 -29.0
EBITDA €m 989.5 1,150.6 16.3
Operating result €m 692.9 843.6 21.8
Group result €m 477.7 587.4 23.0
Earnings per share 1.38 1.69 23.0
EBIT margin % 27.5 47.1
EBITDA margin % 39.2 64.3
Cash flow from operating activities €m 852.3 510.6 -40.1
Free cash flow after dividends €m 135.8 -595.8
Performance of the VERBUND-share % 4.3 25.6
Gearing % 29.7 41.9
Additional information as well as the Interim Report for quarters 1–3/2021 is available at www.verbund.com > Investor Relations > Latest financial results.

Contact

Andreas Wollein Andreas Wollein

Head of Group Finance and Investor Relations

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