VERBUND recorded a solid income trend in quarters 1–2/2017 despite the fact that the water supply was well below average. At 0.89, the hydro coefficient representing the water supply from rivers was 10 percentage points below the level for quarters 1–2/2016 and down 11% on the long-term average. Generation from hydropower therefore decreased by 1,477 GWh. Overall, VERBUND’s own generation declined by 4.7% to 15,132 GWh compared with the same period in the previous year. Even though thermal generation increased significantly and generation from new renewable energy sources was also up, this was not sufficient to compensate for the decrease in hydropower generation. Lower earnings in the Grid segment also had a negative impact on the result. By contrast, earnings were boosted by higher revenue from flexible products, particularly congestion management products, as well as by the restructuring of thermal operations. EBITDA thus decreased by 7.6%, from €450.2m to €415.9m. EBIT increased by 27.5% to €243.3m, and the Group result was up 0.4% on the prior-year period to €154.5m.
Outlook for 2017
We are maintaining our earnings forecast for full-year 2017. Assuming an average supply of both wind and water in the second half of 2017, we expect EBITDA in financial year 2017 to amount to approximately €830m and the Group result to approximately €300m.