As expected, Verbund released a strong start to the year thanks to surging power prices. EBITDA was up 169% yoy to €815m. This enabled the group to improve its guidance by increasing the low end of the range by c.10%.
However, the risk of windfall taxes continues to increase in Austria and leaves room for doubt on the sustainability of such profits.
Our long-dated cautious view now seems justified (finally!).
12 May 2022
Q1 22: the cash cow soon milked ?
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Q1 22: the cash cow soon milked ?
- Published:
12 May 2022 -
Author:
Nicolas Bouthors -
Pages:
3
As expected, Verbund released a strong start to the year thanks to surging power prices. EBITDA was up 169% yoy to €815m. This enabled the group to improve its guidance by increasing the low end of the range by c.10%.
However, the risk of windfall taxes continues to increase in Austria and leaves room for doubt on the sustainability of such profits.
Our long-dated cautious view now seems justified (finally!).