Verbund Action Forum

Verbund Q3 2024 $VER (+4,78 %)

Financial results

• Turnover: Total revenue for Q1-3 2024 amounted to EUR 5,837.6 million, a decrease of 40.4% compared to Q1-3 2023.
• EBITDA: Reported and adjusted EBITDA for Q1-3 2024 amounted to EUR 2,625.2 million, a decrease of 26.0% compared to the previous year.
• Group result: Consolidated net income for Q1-3 2024 amounted to EUR 1,387.2 million, a decrease of 30.0%.

Balance sheet overview

• Total assets: Decreased by 3% from EUR 19,485 million as at 31.12.2023 to EUR 18,837 million as at 30.9.2024.
• Equity: Decreased by 5% to 10,693 million euros.
• Net debt: Increased by 35% to 2,370 million euros.

Details of the income statement

• Turnover from electricity sales: Decreased by 3,607.5 million euros to 4,940.7 million euros.
• Grid turnover: Decreased by 374.2 million euros to 678.8 million euros.
• Other operating income: Increased by 36.0 million euros to 103.8 million euros.

Cash flow overview

• Operating cash flow: Decreased by 44% to 2,333 million euros.
• Free cash flow after dividends: Was negative at -392.5 million euros, compared to 1,475 million euros in Q1-3 2023.

Key figures and profitability metrics

• Gearing ratio: Increased from 15.7% to 22.2%.
• Earnings per share: Decreased from 5.70 euros to 3.99 euros.

Segment information

• Hydropower segment: Sales fell by 25.1% to 2,686.7 million euros, EBITDA fell by 26.9% to 2,276.3 million euros.
• Grid segment: EBITDA decreased from 413.7 million euros to 257.3 million euros.
• Sales segment: EBITDA improved due to lower procurement costs, despite weaker results from energy derivatives.

Competitive position

The company is focusing on the expansion of battery storage systems and e-mobility projects, with a capacity of 110 MW in operation and further projects of over 400 MW in development.

Forecasts and management comments

• Forecast for 2024: EBITDA is expected to be between EUR 3,200 million and EUR 3,400 million, with consolidated net income of around EUR 1,700 million to EUR 1,800 million.

Opportunities and risks

• Risks: These include the volatility of electricity and gas prices, regulatory changes and possible project delays.
• Opportunities: An improved water supply and higher income from direct marketing contributed positively to the results.

Positive aspects

• Improved contribution from the sales segment due to lower procurement costs.
• Increasing production from wind, PV and thermal plants.
• Successful management of hydropower projects without major restrictions.
• Positive financial contribution from KELAG.
• Expansion of battery storage systems and e-mobility projects.

Negative aspects

• Significant decline in total revenue and EBITDA.
• Negative free cash flow after dividends.
• Increase in net debt by 35%.
• Weaker contribution from the grid segment.
• Decline in electricity and grid income.

A belated Merry Christmas and a few impressions from yesterday. #bierchallange
#winterchallenge

If you take a closer look, you can see the dam wall of Austria's most beautiful pumped-storage power plant from the $VER (+4,78 %) . Subjectively a much better company than $UKW (-0,63 %) 😋

$UKW (-0,63 %)
$VER (+4,78 %) ⚡

What FM is to some people, Verbund is to me. For me, the dividend is less interesting than the chart, but to each his own, both have a right to exist.🤷‍♂️

What the two companies have in common is basically wind and renewable energies in general. A little background information on electricity trading should be of interest to investors in both companies.

For the tl:dr group, the last paragraph is also sufficient - this may have an impact on the dividends!

What does energy procurement on the futures and spot market actually look like?😲🤑

Electricity exchanges work like a stock exchange, i.e. electricity is offered by producers and demanded by consumers (suppliers, companies).

The exchange price for the electricity is determined by the last power plant whose bid is used to meet demand. This so-called marginal power plant is always the most expensive. The model is called merit order and this "last price" is also called the market clearing price, as supply and demand are balanced at this price, i.e. the market is cleared.

The merit order principle is a key concept in the electricity market. It states that electricity generators must pay a price based on their variable costs enter the market in ascending order. The cheapest generators, usually renewables such as wind and solar, are switched on first as they have lower operating costs. If demand increases, more expensive generators such as gas-fired power plants or coal-fired power plants are brought in.

In practice, this means that the most expensive electricity producer determines the unit price. This means that buyers on the exchange cannot benefit from cheaper renewable energies. They always pay the price of the most expensive power plant.

For renewable electricity producers such as $UKW (-0,63 %) and $VER (+4,78 %) themselves, however, this is an advantage because their revenue is usually higher than their production costs, which in the best case can fuel further investments or even mean "excess profits". These are not used for investments, but are distributed as bonuses or dividends. distributed as bonuses or dividends and thus withdrawn from the market.💰💰💰

The EU Commission wants to reform the reform the European electricity marketbut the merit order principle is not up for discussion. Instead - according to the proposal - there should be a so-called bilateral contract for difference (CfD) should be introduced. This caps the prices for renewable electricity producers both downwards (EEG feed-in tariff) and upwards. In this way, the excess profits from electricity trading are to be passed on to customers... investors will not necessarily be happy.

PS: The picture is from the most beautiful 😀 pumped storage power plant of Verbund AG - especially for @Altior_mons 🚀

$STR (+2,85 %) Strabag SE

After taking positions on my Austrian favorites again in the last few days $OMV (+1,13 %) and $VER (+4,78 %) another favorite is slowly entering the buy zone.

Let's see what else happens in December 🧐 ...as soon as the 36 mark is reached, I'll buy 💸😂

@7Trader
@California_Dreamin What do you think of Strabag and Mr. Haselsteiner's investments?

The Q3 figures are due tomorrow, so I'd rather stand on the sidelines. If it remains calm, there is nothing for me against a short-term re-entry.

#seechallenge Toplitzsee, Salzkammergut🇦🇹

For hardening in autumn due to the high cost of $EVN (+2,86 %) and $VER (+4,78 %) in which I have then earned thanks to österr. electricity subsidy even what😅

$VER (+4,78 %) The Q1 data are there 😁

Sales revenue +28.9

EBITDA +18.7%

Operating result +19.2%

Earnings per share +2.8%

Details for interested parties see link

https://www.verbund.com/de-at/ueber-verbund/investor-relations/finanzergebnis

after days like these I have to pick up some austrian pearls again 😅

$VER has reported encouraging results for 2022😎

EBITDA increased by +100,2 % 3,160.7 million.

Net income increased by +119,8 % to 1,754.9 million

Dividend €3.60 (€2.44 plus special dividend €1.16)

Earnings per share from €2.51(2021) to €4.94

Very important the outlook 2023:

Fiscal 2023 EBITDA is expected to be between around 3,500 million and 4,400 million and net income between around 1,900 million and 2,500 million - i.e. significant increases for 2023!

My #boersengehandelteralltag

At 5:30 a.m. the alarm clock of my $AAPL (+0,5 %) iPhone wakes me from sleep, thank $VER (+4,78 %) thank it that it is also light in the house. Nothing works without electricity.

The first way leads to the bathroom where, besides water, I only find products from $ULVR (-0,11 %)
$PG (+0,38 %) and $BEI (+0,24 %) to my skin. A praise to the $OMV (+1,13 %) - without fuels it would be quite cool in the house. Thanks to Biotherm Brick from $WIE (+2,88 %) the heat also stays where it should be.

While the hot coffee from $NESN (+1,09 %) unfolds its aroma, I quickly check all accounts and deposits that I have all at Easybank, a brand of the $BG (-1,65 %) . Since I am not the only one in the family, whose $V (-0,01 %)
$MA (-0,28 %) and cell phone contract from $TKA (+2,31 %) run on my account, a daily balance check is not a disadvantage😉

Should not grad be one of my 3 home office days of the week, then I jet with my car from $VOW3 (+1,83 %) built over perfect roads from $STR (+2,85 %) to the office 50km away.

In the office as well as in the home office I sometimes start the notebook from $HPQ (+0,42 %) Thanks to docking station, flat screen and Co we are well equipped everywhere. If something is missing, I can choose from a wide range of products thanks to webshop integration in our $SAP (+1,18 %) Procurement Suite, I can choose from a wide range of products from $HPQ (+0,42 %)
$BC8 (+1,69 %) and $AMZN (-1,02 %) order what I need.

Once the systems are up and running, communication takes place via all the channels that the $MSFT (+0,04 %) office package offers. It can also be exhausting when, in parallel to MS Teams video calls, the flood of chats and e-mails bursts upon you... "follow the sun" there are always colleagues active somewhere.

Through cloud solutions from $AMZN (-1,02 %) and $GOOG (-2,22 %) access to all documents is possible at any time. A curse and a blessing at the same time - such a short blackout in between would also be something. After 8-12 hours, depending on how the day goes, it's off home, or just down to the kitchen.

When I then see my 3 girls, I ask myself why I'm not all-in at $ZAL (-0,6 %)
$YOU (+0,89 %)
$ADS (+0,51 %)
$NKE (-0,01 %) and Co? How much do you actually have to buy to be entitled to a supervisory board position?😵

Now I would like to conclude by thanking my wife, who today at breakfast promised me her full support in my WM blockade, we will now on all game days Christmas movies on $NFLX (+0,54 %) watch (Insider Tip - All-in $NFLX (+0,54 %)
-no investment advice - the author is not invested - rather subscribed).

So that's it from me. And now off to the mountains to enjoy the beautiful November weather...

PS: since we have quite strict social media guidelines, I do not mention my employer. I myself am or was once an engineer for electronics and then drifted in the direction of purchasing. After many interesting years in strategic purchasing in industry and automotive, I am now still responsible for this area in a supporting capacity. I am responsible for all processes in the source-to-pay area, including the further development of the associated system landscape. Through my work in purchasing I got to know the joy of company analyses, so the way to the stock exchange was not far away.