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VERBUND recorded a positive earnings trend in the first quarter of 2017. EBITDA improved by 6.5% to €227.5m and the Group result increased by 13.4% to €93.5m. The water supply from rivers, with a hydroelectricity generation coefficient of 0.92, was 8% below the long-term average and below the level in the first quarter of 2016. Based on average water supply and average wind conditions in quarters 2–4/2017, VERBUND expects to see EBITDA of around €830m (previously around €800m) and a Group result of around €300m (previously around €280m) for the 2017 financial year as a whole. (previously around €800 million) and a Group result of around €300 million (previously around €280 million).
VERBUND's result for quarter 1/2017 increased year on year despite the persistently challenging conditions in the energy industry. The measures implemented in recent years, in particular the reduction of growth and maintenance investments, consistent cost reductions, the implementation of the thermal restructuring and the adjustment of the dividend, contributed to the positive business performance. Demand for flexible electricity products from our portfolio of power plants remains high.
EBITDA improved by 6.5 % to € 227.5 million, the operating result rose by 9.2 % year-on-year to € 141.3 million and the group net profit increased by 13.4 % to € 93.5 million. The water supply, with a hydroelectric coefficient of 0.92, was 8% below the long-term average and below the level of quarter 1/2016. As a result, generation from hydropower fell by 372 GWh. Overall, VERBUND's own generation was up 2.0% on the first quarter of the previous year at 6,836 GWh due to the significant increase in thermal generation and higher wind power generation. Average sales prices for electricity were slightly lower than in the prior-year quarter. The prices for the 2017 financial year for electricity futures contracts (front-year base 2017, traded in 2016) were 14.2% below the average level of the previous year at an average of €26.6/MWh. Spot market prices (base) rose by 63.3% to €41.3/MWh in the reporting period. This favourable earnings trend is mainly due to higher revenue from flexibility products, particularly from congestion management.
The better-than-expected earnings trend in the first quarter of 2017 has led to an upward revision of the earnings forecast for the year as a whole. Assuming average water and wind levels in quarters 2-4/2017, VERBUND expects to achieve EBITDA of around €830m (previously around €800m) and a Group result of around €300m (previously around €280m).
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