🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-Verbund Q3 EBIT 269 mln eur, cuts outlook

Published 10/27/2009, 03:30 AM
Updated 10/27/2009, 03:33 AM
RECSI
-
VERB
-

* Q3 EBIT down 16 pct to 269 million euros, misses forecasts

* Low spot prices hurt earnings, focus on renewables

* Cuts outlook

* Sticks to dividend policy

(Adds detail)

VIENNA, Oct 27 (Reuters) - Austria's biggest utility, Verbund cut its full-year forecast on Tuesday after reporting a 16 percent fall in third-quarter operating profit as lower spot prices hurt earnings.

High rainfall, however, helped boost its hydropower business, slightly softening the blow to its overall results.

Verbund, which generates a large portion of its power from hydro-electric dams in Austria, said it would continue to put more of its resources into renewable energy to avoid seasonal factors.

Group earnings before interest and taxes (EBIT) fell to 269.1 million euros ($405 million), Verbund said. Analysts polled by Reuters had predicted 289 million euros EBIT.

Net profit fell to 191.9 million euros, also under the average estimate. Verbund said a 40 percent fall in spot prices in the first three months of the year was mainly to blame.

"With regard to the current financial year 2009, on the basis of a relatively stable operative business development, the company expects a slight decline in its results compared to 2008," Verbund CEO Wolfgang Anzengruber said in a statement.

He said the company will stick to its dividend policy with a payout ratio of at least 45 percent.

The group had previously said it aimed for similar operating results in the full year as last year.

Smaller Austrian peer EVN said earlier this month it expects its 2008/09 operating earnings will be slightly better than a year ago..

Verbund shares have held steady since the start of the year, outperforming the DJ Stoxx European utilities index which has fallen nearly 6 percent. (Reporting by Sylvia Westall; Editing by David Cowell)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.