* Writedowns of 1.12 billion euros, capex cut 300 mln eur
* 1.15 bln eur cash inflows, one-offs from E.ON asset swap
* EBITDA forecast raised to 1.15 billion euros
(Adds details on writedowns, capex, background)
By Georgina Prodhan
VIENNA, June 12 Austrian hydropower firm Verbund
said it would write down its assets by 1.13 billion
euros ($1.5 billion) and cut investments again as electricity
markets deteriorated sharply.
Verbund said it expected 2013 earnings before interest, tax,
depreciation and amortisation (EBITDA) of 1.15 billion euros, up
from its previous estimate of 1 billion, due to cash inflows and
non-recurring effects from an asset swap with E.ON.
The company said it was forced to write down gas and
renewables assets due to the poor market environment, in which
wholesale gas and electricity prices are bring driven down by a
glut of renewable energy and cheap carbon emission certificates.
"Economic conditions for electricity suppliers in Europe
have deteriorated even more in recent weeks," Verbund said in a
statement on Wednesday. "This is primarily a result of the
massive oversubsidisation of new renewable energy."
European utilities have begun selling off assets amid weak
demand from manufacturers, who are key consumers of energy, and
plunging wholesale prices, especially in Germany.
Germany's biggest electricity supplier, RWE, said
earlier that German wholesale power prices did not allow
operators sufficient revenue, and urged a new market system to
uphold future supply.
Verbund said it would cut its investments between now and
2017 by a further 300 million euros, on top of a 700
million-euro cut it announced a month ago, to 1.2 billion euros.
It also announced extra cost cuts of 130 million euros to 2015.
It said it would write down its combined cycle gas turbine
power plants in Austria and France by 659 million euros, its
interest in Italy's Sorgenia by 371 million and its renewable
energy projects and equity interests by 96 million.
Thanks to 1.3 billion euros from the E.ON asset swap and
expected better-than-average water supply, it said net profit
would rise 54 percent this year to at least 600 million euros,
and stuck to its plan to pay a dividend of 1 euro per share.
($1 = 0.7498 euros)
(Editing by Michael Shields and David Holmes)