Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on VERBUND AG. We currently have 8 research reports from 1 professional analysts.
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Another guidance upgrade for 2016. Increasing likelihood of a German-Austrian market separation
09 Nov 16
The group has once again provided strong 9m results with revenues relatively flat with a 0.8% yoy increase to €2.12bn, but EBITDA increased 11.5% yoy to €810m and net income increased by 48.7% yoy to €466.4m. On an adjusted basis, net income still increased 12.7% to €276m and EBITDA 2.8% to €698m. The positive results were driven by the positive hydro performance, effective cost cutting, supply renegotiation contracts for gas assets and a higher contribution from networks. As a result, the group has raised once again its full-year guidance with EBITDA now expected to be €980m and reported net income €385m. The dividend policy is still maintained at a 30% payout ratio with an increase in adjusted net income to €315m.
Positive results confirm previous guidance upgrade
28 Jul 16
Strong half-year results for the company given the market conditions as revenue increased 3.9% yoy to €1,460.7m. However, reported earnings were negatively impacted on a comparative basis as 2015 benefited from positive non-recurring items in addition to impairment losses. As a result, EBITDA fell 8% yoy to €450.2m, operating profit decreased 37.2% yoy to €190.8m and net income contracted by 21.6% yoy to €153.9m. However, on an adjusted basis, the results provide a completely different story as EBITDA increased 1.8% yoy to €450.2m and income improved by 7.9% to €173.9m. Moreover, operating cash flows increased 13% yoy to €476.6m, while free cash flow before dividend payments contracted by 21% to €365m. As a result, the provided results confirm the guidance increase provided on 18 July 2016, when the group expected to achieve an EBTIDA of €840m and net income of €270m for the full year 2016. The 30% payout ratio would be calculated on an adjusted net income of €290m.
Guidance raised followed by a dividend cut
18 Jul 16
Before the half-year results, Verbund has raised earnings expectations for 2016 with EBITDA 12% higher to €840m and a net income of €270m (+17.3%). The improvement is due to cost reductions from restructuring measures, higher profit from the grid segment and a slight improvement in the electricity business. However, in terms of dividend payment, the group has set for 2016 a payout ratio of 30% (reduced from 50% last year) as the group will concentrate on improving cash flows and reducing debt. For 2017, the dividend policy will be announced with the publication of FY2016 financial results.
Solid start to the year, offset by uncertainty over the dividend policy
04 May 16
Despite the difficult market conditions Verbund has provided strong results with revenue reaching €806m, a 10.9% yoy increase and 19% above expectations, driven by a higher customer base and an increase in electricity sales volumes (+9.2% yoy). EBITDA was relatively flat (-2% yoy), although it is 11% better than forecasts due to a higher contribution from regulated activities and the positive effects from the restructuring process. Operating profit increased 4.5% yoy to €129.4m and *adjusted net income increased by 30% yoy to €82.4m, mainly due to improved financial results, translating into an EPS of €0.24. Operating cash flows increased by 60% yoy and net debt decreased by 5.4% ytd to €3.48bn. Free cash flow after dividend payments remained in positive territory, although it decreased by 19% yoy to €216m, mainly driven by higher cash outflows associated with money market transactions (-€139m). Despite the strong performance, guidance has been maintained with EBITDA at €750m and €230m in net income as the group expects the performance to continue in the coming quarters. Moreover, the dividend policy is currently under review as the group is focusing on cash-flow generation.
Focus on cash flows as power prices fall: lower investment and dividends
15 Mar 16
Given the market environment, the group showed a good operating performance with revenue increasing by 3.1% yoy to €2,969m and EBITDA increasing 10% to €888m, positively boosted by one-offs. On an adjusted basis, however, EBITDA decreased by 6% yoy reaching €839m as the reversal on grid revenue provisions linked to SNT-VO and SNE-VO are non-recurring items with a €50m positive effect on earnings. The bottom line results were better than expected due to lower financial expenses (-55%yoy) and taxes reaching €207.7m (+64% yoy). On an adjusted basis, net profit reached €268.9m, which is a 24% yoy increase. Cash flows remained strong despite deteriorating conditions as operating cash flows decreased 6% yoy to €673.9m, where lower capex (-37% yoy), dividend payments (-62% yoy), added to €441m from divestments, have allowed the group to repay €893m of outstanding debt without any new debt begin issued, while maintaining free cash flow relatively flat at -€12.8m. In terms of guidance, the group has made clear its worries concerning lower power price developments as it now targets €750m in EBITDA and €230m in net income. The lower than expected dividend at €0.30/ps has been proposed, corresponding to a 50.2% pay-out on the reported basis and only 38.8% on the adjusted one. This amount was a last minute measure taken by Verbund’s board as a €0.35 dividend proposal was written in the annual report, with a later adhoc document stating the downward revision on the dividend payment to €0.30.
Balancing grid revenues improve the group’s performance
04 Nov 15
Positive results for Verbund, as it has once again raised its guidance for 2015 to €900m EBITDA (+6%) with net income reaching €240m. The payout ratio is maintained at 50%. Top-line results are better than expected, with revenue increasing by 1% ytd where it was expected to be flat, reaching €2,106m. EBITDA increased by 15% to €727.7m, although on an adjusted basis it decreased by 1% ytd to €681m due mainly to lower achieved prices and a lower hydro coefficient, slightly compensated by higher electricity volumes. Operating profit increased by 87% ytd, although it remains within forecasts of €386m. Adjusted net income increased by 40.7% ytd to €245.2m, which is 4% above expectations. Free cash flow after the dividend was €393m, coming from negative territory a year ago.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.