Verbund, EVN rise after Austria's windfall tax announcement

VERBUND AG

18/11/2022 09:06

** Shares in Austrian hydropower producer Verbund  VERB.VI 
and energy and environmental services provider EVN  EVNV.VI 
rise 8% and 5.6%, respectively, after Austria's government said
it plans temporary windfall tax of up to 40% for oil and gas
firms and power companies
    ** The tax, which will apply to oil and gas firms' profits
this year and next that are 20% above the average of previous
years, can be reduced to 33% if the companies make green
investments, the Finance Ministry said in a statement
    ** A separate system for power companies will apply to
revenues per megawatt hour above 140 euros, it said
    ** Credit Suisse deems the news positive, saying the
threshold of EUR 140/MWh is above its assumption of EUR 70/MWh
    ** CS also points to the deduction for new investments into
renewables
    ** Verbund AG is 51%-owned by Austria
    ** Back in May, Verbund shares dropped after Chancellor Karl
Nehammer said new regulation on windfall profits for companies
with state participation was needed
 (Reporting by Linda Pasquini)
 ((Linda.pasquini@thomsonreuters.com))