VERBUND AG Reports Strong Business Performance in 2023 Amid Challenges

VERBUND AG, a key player in the energy sector, navigated a challenging environment in 2023, marked by geopolitical conflicts and economic factors. Despite these adversities, the company's strategic positioning led to a successful year, with substantial growth in operational results and major financial indicators. The geopolitical turmoil, including the ongoing conflict in Ukraine and Middle East tensions, reshaped Europe's energy supply chains, affecting electricity price trends. Consequently, procurement costs rose amid heightened price volatility and stricter economic conditions. VERBUND AG faced increased financing and procurement expenses impacting its investment activities, although the rise in electricity and gas prices only partially transferred to consumers.

Despite these obstacles, VERBUND AG experienced a notable improvement in its financial results. EBITDA increased by 42.1% to €4,490.5 million, with the reported Group result climbing by 32.0% to €2,266.1 million. The company benefited from higher generation from run-of-river and annual storage power plants, alongside a significant boost in wholesale electricity prices. Additional revenue was generated from new photovoltaic installations and wind power plants, particularly in Spain, along with contributions from Gas Connect Austria GmbH and Austrian Power Grid AG. Nonetheless, challenges such as reduced thermal generation and high procurement costs impacted the overall performance.

Looking forward to 2024, VERBUND anticipates an EBITDA between €2,600m and €3,300m, with a Group result in the range of €1,300m to €1,750m. The company plans a dividend of €4.15 per share for 2023, reflecting its positive business trajectory. This proposed dividend includes a regular dividend of €3.40 per share and a special dividend of €0.75 per share, offering shareholders a share in the exceptional results achieved.