The electricity group Verbund has hardly felt the corona crisis so far. The energy provider, which specializes in hydropower, plans to continue its multi-billion dollar investment program as planned.
The energy supplier specializing in hydropower Verbund (ISIN AT0000746409) can live well with the development of its business in the Corona crisis. Although after the low-precipitation winter and the low water level of the local rivers, there was fear of a significant decline in own electricity production. However, the results up to June were only slightly lower than in the previous year. Consolidated earnings fell 8.2 percent to 310.4 million. Euro. The stock lost 1.1 percent.
“We have come through the crisis well so far,” said Director General Wolfgang Anzengruber – and you also have the strength to invest. However, support for the framework conditions is necessary, for example through the overdue Renewable Energy Saving Act (EAG) or the Investment Premiums Act, which is in the home stretch.
Investment program continues
Verbund wants to continue investing two billion euros in the period 2019-2021, “we are ready to increase that, if the conditions are right,” said Anzengruber. Currently, the money is mainly invested in the expansion of hydropower plants, primarily increases in efficiency. The investments are possible thanks to high own reserves.
The network experienced the Covid-19 lockdown in the first half of the year with industrial customers with negative earnings effects of two million euros. There were also shifts in volume from commercial to household quantities. For commercial customers, it is due to Covid until June 30. overdue receivables increased. The drop in consumption is now only 5 to 6 percent lower, the pre-crisis level will no longer be reached this year.
Verbund is diligently expanding its power grids. Despite the corona crisis, the projects are under construction, “with some background noise,” Anzengruber pointed to the ongoing protests for the 380 kV Salzburg line in some Salzburg municipalities. The new or reinforced lines should have been used “the day before yesterday”. Because redispatch – interventions in the system in order to maintain the balance in the networks – had already been required in 128 days in the first half of the year.
For the negotiations with the oil and gas company OMV on the acquisition of 51 percent of the OMV subsidiary GasConnect, Anzengruber “assumes that we will find a final this year”. The association had made a binding offer for 51 percent of the shares in mid-June. For the GasConnect acquisition, the association could also issue bonds, CFO Kollmann did not rule out: “Our access to the capital market is intact.”
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