Verbund Lowers 2022 Outlook Despite Boost From Higher Electricity Prices
03 November 2022 - 7:35PM
Dow Jones News
By Cecilia Butini
Verbund AG on Thursday posted higher revenue and earnings for
the first three quarters of the year, boosted by higher wholesale
electricity prices, but lowered its outlook for the full year as a
result of poor water supply and European Union measures to skim off
profits of energy companies.
The Austrian utility company posted a profit of 1.07 billion
euros ($1.05 billion) for the first nine months of the year, up
from EUR587.4 million the year prior.
Revenue jumped to EUR7.62 billion from EUR2.82 billion in the
same period of 2021.
The company's operating result came in at EUR1.62 billion from
EUR843.6 million the previous year, and earnings per share rose to
EUR3.07 from EUR1.69.
Verbund said it generated below-average electricity volume from
run-of-river power plants in the third quarter due to the dry
summer. It also said developments in energy markets as well as the
current geopolitical situation delivered a hit to earnings, though
they also received a boost from an increase in wholesale
electricity prices.
Looking ahead, the company said it had to adjust its 2022
outlook as a result of poor water supply in the third quarter and
due to the measures implemented in the EU to skim off profits at
energy companies.
Verbund expects 2022 earnings before interest, taxes,
depreciation and amortization of between about EUR2.8 billion and
EUR3.3 billion, having previously guided for a range of between
EUR3 billion and EUR3.5 billion. The group's profit is expected
between EUR1.53 billion and EUR1.88 billion, down from a previous
range of EUR1.68 billion and EUR2.03 billion.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
November 03, 2022 04:20 ET (08:20 GMT)
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