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Verbund’s 9M23 results were supported by a higher-than-expected hydro coefficient of 0.93 (compared to 0.84 in 9M22) and still-high power selling prices due to the forward selling policy. As a reminder, 60% of the group’s generation is contracted on the basis of 1-year forwards. These excellent earnings were possible due to the high market price environment last year, which is not a normative situation, so we will see a normalisation over the next quarters.
VERBUND VERBUND AG Class A
Verbund published earnings in line with the consensus after a strong recovery during 1Q. The Hydro segments contributed 89% of the EBITDA and increased by 58% yoy in the back of higher average achieved prices on futures while renewables also performed well with +6.2% in power generation.
Verbund published strong earnings supported by higher power prices on the wholesale market and by a recovery in hydro generation due to better water supply conditions offsetting lower production from thermal generation. The FY 2023 guidance was confirmed with an increase in the EBITDA range from €3.5-4.4 bn to €3.7-4.3bn.
It came as no surprise to see that wind, solar but also thermal generation drove Verbund’s results in 2022, despite weak hydro power generation amidst a lower coefficient that led the group to proceed with electricity buy backs at high market prices. The significantly higher average prices in wholesale markets in an unprecedented energy context led the group to propose an exceptional dividend. However, the impact of the different levies on excess profits could weigh on earnings.
Verbund reported an EBITDA at €1.933bn for the 9M 2022 period, up by 68%, mainly supported by higher spot and forward prices on the electricity market amid the galloping energy crisis marked by the difficult geopolitical and energy industry developments. The group however suffered from a lack a water in power generation with a negative impact on the valuation of the hedging positions.
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