Austria's Verbund Raises Earnings Guidance After Asset Swap

Austrian utility Verbund AG (VER.VI) Wednesday raised its earnings guidance for the year, following the completion of an asset swap with E.ON AG (EOAN.XE) at the end of April.

MAIN FACTS:

-As part of this transaction, Verbund sold its 50% interest in Enerjisa Enerji A.S. in Turkey to E.ON and acquired E.ON shares in 8 run-of-river power plants in Germany in exchange.

-In addition to eliminating planned investments in Turkey, this results in immediate ongoing cash inflows and significant favorable one-off effects in the first half amounting to approximately 1.3 billion euro ($1.73 billion).

-Verbund raised its 2013 guidance for earnings before interest, tax, depreciation and amortization to EUR1.15 billion, from around EUR1 billion previously.

-Writedowns on a combined-cycle gas turbine plants will amount to EUR659 million, and impairments on renewable energy projects will amount to EUR96 million.

-Management still plans to distribute a dividend of EUR1 per share for 2013.

 
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500 
 

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