VERBUND (VER) Q4 2023 earnings summary

Executive summary

• Achieved strong financial results in 2023, with significant growth in EBITDA and Group result year-over-year, despite a challenging macroeconomic and regulatory environment marked by energy market volatility, inflation, and geopolitical tensions.

• Advanced strategic transformation program 'Mission V', focusing on strengthening the domestic market, expanding renewables in Europe, and positioning as a European hydrogen player.

• Major investments in hydropower, grid infrastructure, storage technologies, and new renewables, with a €5.5bn investment plan for 2024–2026.

Financial highlights

• Revenue increased to €10,449.5m in 2023 (+1.0% year-over-year).

• EBITDA rose by 42.1% to €4,490.5m; EBIT up 33.3% to €3,501.9m.

• Group result grew by 32.0% to €2,266.1m; adjusted Group result up 49.1% to €2,615.8m.

• Earnings per share increased to €6.52 (+32.0%).

• Free cash flow after dividends reached €2,098.1m (2022: -€25.7m).

• Net debt reduced by 54.9% to €1,758.7m; net debt/EBITDA improved to 0.4.

• Proposed dividend of €4.15 per share (regular €3.40, special €0.75).

Outlook and guidance

• For 2024, EBITDA expected between €2,600m and €3,300m; Group result between €1,300m and €1,750m.

• Planned payout ratio for 2024: 45–55% of Group result (adjusted for non-recurring effects).

• Investment plan for 2024–2026: €5,535m, with focus on grid, new renewables, and hydropower.

• Outlook remains highly uncertain due to energy market volatility, regulatory risks, and geopolitical factors.