VERBUND AG: Half-Year Results 2024 Show Decline Due to Sales Prices

VERBUND AG, a major player in the energy sector, has reported a significant decline in earnings for the first half of 2024. This follows a record year in 2023. The company’s financial performance was impacted by volatile energy markets and a notable drop in wholesale electricity prices. These prices remain higher than pre-Russia-Ukraine war levels but are below the peaks seen in 2022 and 2023.

EBITDA for the first half of 2024 fell by 21.9% year-on-year to €1,762.4 million. The Group result dropped 29.3% to €910.1 million. VERBUND's earnings were also affected by lower spot market prices and a decrease in the average sales price for hydropower generation.

Despite higher generation from photovoltaic installations and wind power plants, the New Renewables segment saw a decline in earnings due to lower sales prices. An increased contribution from the Sales segment helped offset some losses.

The company has adjusted its earnings forecast for 2024, projecting an EBITDA between €3,000 million and €3,300 million, with a Group result ranging from €1,500 million to €1,650 million.