Verbund drops on 2024 profit warning

VERBUND AG

09/02/2024 08:28

** Shares in Verbund  VERB.VI  fall 4% after the Austrian
utility firm gave a profit warning on Thursday, citing a rapid
and massive drop in wholesale prices 
    ** The company expects a 2024 EBITDA of around 2.6-3.3
billion euros ($2.80-3.55 billion) and a group result of around
1.30-1.75 billion euros
    ** This compares to a company-compiled consensus for an
annual EBITDA of 3.8 billion euros and a group result of 2.1
billion euros 
    ** "Verbund's news 2024 guidance some 20% and 27% below
consensus is logical, given the massive drop in electricity
prices in the last two months (by almost 50%)," Erste Group says
    ** "Still, we believe that there is no reason for short-term
recovery of the stock in current environment," the broker adds
    ** Verbund hits the bottom of the Austrian traded index
 .ATX  

($1 = 0.9284 euros)

 (Reporting by Tristan Veyet)
 ((Tristan.chabba@thomsonreuters.com))