VERBUND Q1–3/2012: Higher Group result, 2012 outlook raised

10/24/2012Vienna

VERBUND, Austria’s leading electricity company, achieved good results in quarters 1–3/2012 despite the challenging market and industry environment.

Group result increased

In quarters 1–3/2012, operating business was driven in particular by good water supply. At 1.07, the hydro coefficient was 7.0% above the long-term average and 19 percentage points above the previous year’s figure. In addition, VERBUND benefited from higher sales prices as a result of its hedging strategy: at an average of €56.0/MWh, electricity prices applicable for the 2012 financial year already traded in 2011 via futures contracts (“Year Base 2012”) were up 12.2% over the previous year’s level. In contrast, spot market prices fell by 16.5% to €43.0/MWh in quarters 1–3/2012. In quarters 1–3/2012, however, the operating result fell by 21.7% to €679.5m due to the first-time measurement of the gas supply agreement for the Mellach CCGT and due to positive effects from impairment tests in quarter 3/2011. The operating result before effects from impairment tests increased by 10.1% to €732.6m. The Group result increased by 5.3% to €332.2m, in particular due to the significant improvement of the financial result.

Outlook for the full year

Assuming average water supply in quarter 4/2012, we expect an operating result of around €830m and a Group result of around €380m for the entire year. The dividend policy will aim for a payout ratio of approximately 50% of the Group result.

Key figures Unit Q1–3/2011 Q1–3/2012 Change in %
Revenue* €m 2,201.9 2,294.0 4.2
Operating result** €m 868.0 679.5 -21.7
Operating result before effects from impairment tests** 665.7 732.6 10.1
Return on sales (ROS % 39.4 29.6
EBITDA** €m 841.4 937.5 11.4
EBITDA margin* ** % 38.2 40.9
Group result** €m 315.4 332.2 5.3
Earnings per share** 0.9 1.0 5.3
Cash flow from operating activities €m 638.1 583.3 -8.6
Gearing ratio** % 81.8 82.5
*The key figures were adjusted to reflect the changes in accounting treatment for energy derivatives in the wholesale portfolio. The change was implemented retrospectively effective 1 January 2011 in accordance with IAS 8. **The key figures were adjusted to reflect the (early application of) changes in accounting treatment for employee benefits in accordance with IAS 19 (2011). The change was implemented retrospectively effective 1 January 2011 in accordance with IAS 8.

Contact

Andreas Wollein Andreas Wollein

Head of Group Finance, M&A and Investor Relations

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