Verbund 1Q Net Profit Down 40%, Announces 2013 Dividend Increase

VIENNA--Austrian utility company Verbund AG (VER.VI) plans on increasing its dividend in 2013 despite reporting in the first quarter a 40% drop on the year in its group result, the company said Thursday upon release of its first quarter earnings.

MAIN FACTS:

-For financial year 2013, Verbund plans to increase the dividend to 1.00 euros ($1.32) per share, up from EUR0.60 in 2012.

-Verbund said the dividend increase is based on the successful completion of the asset swap with German electric company E.ON SE (EOAN.XE).

-The first-quarter group result decreased significantly by 40% on the year to 77.1 million euros ($101.6 million) due to the negative contribution of Italian Sorgenia. Sorgenia had been impacted by an impairment loss recognised for its 39% equity-accounted interest in Tirreno Power S.p.A., Verbund said.

-Verbund's operating business was positively impacted in the first quarter of 2013 by a good water supply, the company said.

-Declining electricity wholesale prices also negatively impacted the earnings trend as did the continued difficult economic situation for gas power plants, Verbund said.

-Earnings before interest, taxes, depreciation and amortisation decreased by 11% on the year to EUR312.3 million and the operating result fell by 18% to EUR233.7 million.

-Verbund said it expects its 2013 EBITDA to be approximately EUR1 billion.

 
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