In This Article:
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Revenue: Not explicitly mentioned in the transcript.
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EBITDA: Decreased by 22.5% to EUR3.48 billion.
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Hydro Segment EBITDA: Decreased by 23% to EUR3 billion.
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New Renewables Segment EBITDA: Decreased by 25% to EUR170 million.
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Sales Segment EBITDA: Increased to EUR7 million.
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Grid Segment EBITDA: Decreased to approximately EUR284 million.
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Gas Connect Austria EBITDA: Approximately EUR86 million.
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Group Result: Decreased by 17% to EUR1.87 billion.
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Operating Cash Flow: Decreased to EUR3.25 billion.
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Free Cash Flow After Dividends: Decreased to EUR145 million.
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Net Debt/EBITDA: At 0.6 as of December 31.
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Dividend Proposal: EUR2.8 per share for 2024.
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CapEx Plan: Increased to EUR5.9 billion over the next three years.
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2025 EBITDA Guidance: Between EUR2.7 billion and EUR3.3 billion.
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2025 Group Result Guidance: Between EUR1.35 billion and EUR1.75 billion.
Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Verbund AG (OEZVF) reported a significant increase in hydro generation, with a 9.6% rise to 33,448 gigawatt hours compared to 2023.
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The company successfully commissioned new renewable power plants in Spain, Austria, and Germany, contributing to increased generation from wind and PV.
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Verbund AG (OEZVF) completed important projects like the 45-megawatt ReiBeck II pumped-storage power plant and the 11-megawatt Gratkorn run-of-river power plant.
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The sales segment showed improvement, with EBITDA increasing to a slightly positive value of EUR7 million, driven by lower procurement costs.
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The company plans to invest EUR5.9 billion over the next three years, focusing on growth and maintenance, particularly in the regulated Austrian electricity grid and renewable generation projects.
Negative Points
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Verbund AG (OEZVF) experienced a decrease in average achieved contract prices, impacting overall results despite increased generation volumes.
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EBITDA in the hydro segment decreased by 23% to EUR3 billion due to lower achieved contract prices.
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The new renewables segment saw a 25% decrease in EBITDA to EUR170 million, affected by lower achieved prices and higher operating expenses.
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The Grid segment recorded lower contributions from Gas Connect Austria and Austrian Power Grid, with a significant negative impact expected in 2025.
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The company faces uncertainty regarding the Austrian windfall tax and potential adjustments to the price cap, which could affect future financial results.
Q & A Highlights
Q: What is the impact of the new tax in Austria on Verbund's financials, and how does it affect future projections? A: Peter Kollmann, CFO, explained that the new tax could range between EUR50 million to EUR100 million for 2025. The government aims to collect EUR200 million annually from the energy sector, and Verbund, being a major player, will contribute significantly. The tax's future impact depends on potential changes in the price cap and the ability to offset investments against the tax.