Verbund announces earnings rise despite drop in contributions from hydro

Verbund financial results

Verbund in Austria has released its 2015 earnings report and indicates its operating result rose 6.8% from 2014 despite reduced water supply at its hydro facilities.

Verbund’s Integrated Annual Report 2015 says the company had revenue of €2.97 billion and operating result (earnings for interest and taxes) of €411 million.

Hydropower produces about 90% of Verbund’s electricity. The company owns 93 run-of-river plants and 21 pumped storage plants. Verbund also holds purchase rights to 12 run-of-river plants owned by Ennskraftwerke AG.

Water supply is measured by means of a hydro coefficient, with a value of 1.0 standing for the long-term average. the company’s hydro coefficient dropped to 0.93, from 1.02 in 2014 and 1.07 in 2013. Hydropower generation in 2015 was 28,098 GWh, down nearly 10% from 2014. “Hydropower saw a considerable supply-related decline,” the report explains.

Despite this, “We are gearing our business towards 100% renewable energy generation from hydropower, supplemented by wind power, with a strict focus on cost-efficient generation,” the report says.

Verbund is able to classify its pumped-storage hydro facilities as renewable, “because pumped storage power plants are operated exclusively using electricity with guarantees of origin from 100% hydropower,” the report says.

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