VERBUND AG Reports Earnings Decline Despite Optimal Conditions

VERBUND AG, in its quarters 1–3/2024 results, reported a decline in earnings, despite favorable water supplies and increased wind and photovoltaic (PV) output. The fall is attributed to market normalization after the 2022 gas price shock. Extreme weather, including flooding in Austria, underscored the climatic challenges, which VERBUND aims to tackle through its 2030 strategy focused on expanding hydropower and renewable energy infrastructure.

Financial results showed a 26.0% drop in EBITDA to €2,625.2m, and a 30.0% decline in Group results to €1,387.2m. The water supply, though beneficial, could not offset lower electricity prices, which affected earnings. Higher output from wind and PV in Spain and acquisitions in Austria and Germany did not prevent a downturn in the new renewables segment.

The company has revised its full-year guidance, expecting an EBITDA between €3,200m and €3,400m. This comes amid expected average renewable generation levels and identified risks. VERBUND aims for a payout ratio of 45-55% of the adjusted Group result.