UPDATE 1-Austria's Verbund lifts full-year profit outlook

Tue Oct 29, 2013 3:32am EDT

Related Topics

* FY EBITDA now seen around 1.25 bln eur vs 1.15 bln eur

* Q3 net profit 62 mln eur vs Reuters poll avg 67 mln eur

* Wholesale electricity prices stagnate at low level (Adds details on earnings, background)

VIENNA, Oct 29 (Reuters) - Austrian power producer Verbund raised its full-year core profit forecast on Tuesday after nine-month results were lifted by proceeds from an asset swap with E.ON.

Verbund said it now expected 2013 earnings before interest, tax, depreciation and amortisation (EBITDA) of around 1.25 billion euros ($1.72 billion), up from its previous forecast of at least 1.15 billion euros.

In the first nine months of the year, Verbund made EBITDA of 1.09 billion euros, a 17 percent increase on the year earlier thanks to a one-off gain of 1.3 billion euros from the asset swap that outweighed large writedowns.

Verbund said wholesale electricity prices, which have been depressed by low demand in Europe and heavy subsidies for renewable energy in Germany, had stagnated at low levels.

Third-quarter net profit almost halved to 62 million euros, missing the average forecast of 67 million euros in a Reuters poll.

The company kept its full-year forecast for net profit of around 600 million euros.

EBIT slipped 2 percent to 203 million euros and was broadly in line with the poll average of 201 million, while revenue rose 4 percent to 759 million euros, missing the poll average of 792 million euros.

Verbund shares have risen 14 percent in the last three months, outperforming the European utilities index by 5 percent, partly because of hopes of German energy policy reform following elections in September.

($1 = 0.7254 euros) (Reporting by Georgina Prodhan; Editing by Jason Neely and Mark Potter)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.