Corporate news: VERBUND 2022 annual results
VERBUND posts encouraging business performance in 2022
Significant improvement in VERBUND’s results for financial year 2022EBITDA climbed by 100.2% to €3,160.7m. The Group result surged by 96.6% to €1,717.0m compared with the same period of the previous year. Particularly as a consequence of the dry summer, the volume of electricity VERBUND generated from its run-of-river power plants in financial year 2022 was well below average. The hydro coefficient dropped to 0.86, or 9 percentage points below the prior-year figure and 14 percentage points below the long-term average. The reduced volume of electricity generated from hydropower had a pronounced negative impact on the development of earnings. The underproduction of hydropower made it necessary to purchase large volumes of electricity so that the electricity volumes that had already been sold on the basis of the long-standing hedging strategy could be delivered. Due to the market conditions, these repurchases had to be made at exceedingly high prices in some cases, which put additional pressure on earnings. The taxation of the windfall revenues of inframarginal power generators in Austria and Germany from December 2022 and corresponding windfall profits in Romania and Spain also had a negative impact on the Group’s result. By contrast, the sharp increase in wholesale electricity prices on the futures and spot markets in particular gave a significant boost to earnings. The average sales prices obtained for VERBUND’s own generation from hydropower rose by €60.2/MWh to €115.1/MWh. The New renewables segment also made a bigger contribution to earnings on the strength of higher average prices and the rise in output. The significantly higher contribution from flexibility products likewise had a positive effect. Moreover, the Group result for financial year 2022 was influenced by non-recurring effects totalling €–37.9m (2021: €+75.0m). Adjusted for these non-recurring effects, the Group result rose by 119.8% to €1,754.9m.
Higher dividendA dividend of €3.60 per share for financial year 2022 will be proposed to the Annual General Meeting on 25 April 2023. This dividend breaks down into a regular dividend of €2.44 per share plus a special dividend of €1.16 per share. The payout ratio (regular dividend plus special dividend) calculated on the basis of the reported Group result amounts to 72.8% for 2022 and the payout ratio calculated on the basis of the Group result after adjusting for non-recurring effects is 71.3%. The payout ratio for 2022 in relation to the regular dividend will thus be 48.3% based on the adjusted Group result.
Forecast for 2023
Based on expectations of average levels of own generation from hydropower, wind power and solar power as well as the opportunities and risks identified, VERBUND expects EBITDA of between around €3,500m and €4,400m and a Group result of between around €1,900m and €2,500m in financial year 2023. VERBUND’s planned payout ratio for 2023 is between 45% and 55% of the Group result of between around €1,900m and €2,500m, after adjusting for non-recurring effects.
** calculation adjusted retrospectively in accordance with IAS 8 in financial year 2021 with effect from 1 January 2020
*** from electricity generation and transmission (excl. GCA) as a percentage of total electricity generated (incl. purchase rights, excl. electricity generated for district heating). Preliminary figures before ETS audit
Additional information as well as non-financial KPIs can be found in the Integrated Annual Report 2022, available on the website www.verbund.com > About VERBUND > Investor Relations > Latest financial results.