Verbund Drops as Weak Power Market Cuts Profit: Vienna Mover
Shares fell as much as 36 cents, or 2.3 percent, to 15.60 euros and traded at 15.69 euros at 9:15 a.m. in Vienna. Verbund’s stock has fallen 15 percent in the last year, giving the company a market value of 5.5 billion euros ($7.3 billion).
“Economic conditions for electricity suppliers in Europe have deteriorated even more in recent weeks,” Verbund said late yesterday in a statement issued after markets had closed. “Wholesale prices for electricity remain under sustained pressure.”
Full-year earnings before interest, tax, depreciation and amortization will be at least 1.15 billion euros, a 7 percent drop from 2012, the company said. Net income will rise at least 54 percent to 600 million euros after a one-time gain on asset sales, the Vienna-based company said.
Verbund swapped power-generating assets in Turkey with E.On SE (EOAN) in December after deciding to curtail its international expansion and focus on Austria and southern Germany. The company, which generates most of its power from hydro plants in the Alps and along Austrian rivers, reiterated it will pay a 1-euro dividend in 2013.
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