Full Year 2024 Verbund AG Earnings Call Transcript
Key Points
- Verbund AG (OEZVF) reported a significant increase in hydro generation, with a 9.6% rise to 33,448 gigawatt hours compared to 2023.
- The company successfully commissioned new renewable power plants in Spain, Austria, and Germany, contributing to increased generation from wind and PV.
- Verbund AG (OEZVF) completed important projects like the 45-megawatt ReiBeck II pumped-storage power plant and the 11-megawatt Gratkorn run-of-river power plant.
- The sales segment showed improvement, with EBITDA increasing to a slightly positive value of EUR7 million, driven by lower procurement costs.
- The company plans to invest EUR5.9 billion over the next three years, focusing on growth and maintenance, particularly in the regulated Austrian electricity grid and renewable generation projects.
- Verbund AG (OEZVF) experienced a decrease in average achieved contract prices, impacting overall results despite increased generation volumes.
- EBITDA in the hydro segment decreased by 23% to EUR3 billion due to lower achieved contract prices.
- The new renewables segment saw a 25% decrease in EBITDA to EUR170 million, affected by lower achieved prices and higher operating expenses.
- The Grid segment recorded lower contributions from Gas Connect Austria and Austrian Power Grid, with a significant negative impact expected in 2025.
- The company faces uncertainty regarding the Austrian windfall tax and potential adjustments to the price cap, which could affect future financial results.
Ladies and gentlemen, welcome to the VERBUND AG full year 2024 conference call. (Operator Instructions) And the conference is being recorded. The presentation will be followed by a Q&A session. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Peter Kollmann. Please go ahead.
Thank you very much. I'm here with Andreas Wollein, Head of Investor Relations and Finance. We will do this presentation together. Ladies and gentlemen, welcome to the presentation of our 2024 results, and let me thank you for joining today's conference call.
Before we move into the analysis of our business development, let me make a few general comments. In '24, the VERBUND results were down compared to '23, but still high in a historic context due to normalizing conditions in the energy industry following the gas price shock after the outbreak of the Russia-Ukraine conflict.
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