VERBUND AG
VERBUND AG: VERBUND results for quarters 1-2/2016: adjusted results improved despite challenging environment, earnings impacted by non-recurring effects
DGAP-News: VERBUND AG / Key word(s): Quarter Results/Interim Report In quarter 2/2016, wholesale electricity prices experienced a slight recovery in the European markets compared with quarter 1/2016. However, the underlying conditions in the market remain challenging due to rising electricity generation capacities, above all for generation from subsidised renewable energy sources, in addition to weak demand for electricity resulting from the soft economy and the effects of energy efficiency measures. All of these factors continue to expose European electricity producers to heavy pressure. VERBUND therefore recently presented the Group’s new programme to reduce costs and increase efficiency, which aims to strengthen free cash flow and additionally reduce debt. The new programme calls for drastically reducing growth and maintenance capex to a level of around EUR1bn in the The income trend in quarters 1-2/2016 was weaker than in the previous year (which was impacted by positive non-recurring effects), above all as a result of impairment losses. However, the adjusted results improved in spite of the difficult market climate, mainly thanks to reduced losses from thermal operations and an improvement in the adjusted result for the Grid segment. The hydro coefficient representing the water supply from rivers was 0.99, which is 4 percentage points below the level of quarters 1-2/2015 and 1% below the long-term average. Generation from hydropower therefore decreased by 595 GWh. Due to the significantly lower level of thermal generation coupled with lower generation from new renewable energy sources, VERBUND’s own generation decreased by 7.7% year-on-year to a total of 15,886 GWh. The difficult operating environment in the energy market was reflected in lower average sales prices. Therefore, EBITDA decreased by 8.0% to EUR450.2m. The Group result amounted to EUR153.9m, a decrease of 21.6% on the prior-year comparative. However, the result for the first half of 2015 had included non-recurring income, whereas the result for the first half of 2016 was reduced by non-recurring expenses such as impairment losses on the Romanian wind farms, the Mellach combined cycle gas turbine power plant and the Gössendorf and Kalsdorf run-of-river power plants. After adjustment for non-recurring effects, the Group result increased by 7.9% to EUR173.9m and adjusted EBITDA was up slightly (+1.8%) to EUR450.2m. Outlook for 2016
Further information and the interim report for quarters 1-2/2016 is available at www.verbund.com > Investor Relations > Latest financial results. Contact:Andreas Wollein Head of Group Finance and Investor Relations T.: +43 (0)5 03 13 – 52604 F.: +43 (0)5 03 13 – 52694 mailto:investor@verbund.com
2016-07-28 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English | |
Company: | VERBUND AG | |
Am Hof 6A | ||
1010 Wien | ||
Austria | ||
Phone: | 0043-1-53113-52616 | |
Fax: | 0043-1-53113-52694 | |
E-mail: | investor@verbund.com | |
Internet: | www.verbund.com | |
ISIN: | AT0000746409 | |
WKN: | 877738 | |
Indices: | ATX | |
Listed: | Foreign Exchange(s) Wien (Amtlicher Handel / Official Market) | |
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