Slight H1 miss weighs on Verbund

VERBUND AG

28/07/2022 09:21

** Shares in Verbund  VERB.VI  fall 4.3% after the Austrian
hydropower producer reported H1 results slightly below
expectations, confirmed its 2022 guidance
    ** "The results were below our and market expectations,
mostly due to the negative impact of valuation of energy
derivatives, in our view" Credit Suisse says
    ** Verbund's H1 EBITDA came in at EUR 1.38 billion, which
missed Credit Suisse's expectations of EUR 1.44 billion by about
4%, the broker says
    ** "The main driver is the negative impact from the
valuation of energy derivatives in connection with hedging
transactions for future energy deliveries, which we would
consider as a temporary effect that will reverse" CS notes
    ** Verbund narrowed the 2022 guidance range and raised the
bottom end of of the guidance as expected, it adds
    ** "While Verbund is operationally strong, the equity is
expensive", the broker says
    ** Stock at the bottom of Austrian blue-chip index  .ATX 
    
    
    ($1 = 0.98 euros)

    

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))