VERBUND AG Reports Slight Decline in Q1 2024 Earnings

VERBUND AG, which recorded its highest earnings in company history last year, has reported a slight decline in earnings for the first quarter of 2024. The company cited a weaker energy market, resulting in an 8.7% decrease in EBITDA at €883.4 million and a 4.3% drop in the Group result to €506 million. Despite an increase in hydropower generation, the marked decrease in futures prices for wholesale electricity and erratic spot market prices severely impacted earnings.

The performance of photovoltaic installations and wind power plants, especially those in Spain, improved generation figures but could not sufficiently counterbalance the lower sales prices affecting the overall earnings. The company’s regulated grid operations and contributions from flexibility products also saw a decline, notably impacting total earnings. EBITDA is expected to be between €2,800 million and €3,300 million, and the Group result should range between €1,450 million and €1,750 million for the fiscal year 2024.