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.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
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