Verbund AG

Verbund is a public utility company engaged in the generation and transmission of electricity from subsidiaries' hydro and thermal power stations located throughout Austria. Through its subsidiaries, Co. is involved in the planning and construction of water systems, hydroelectric power plants, river structures, sewage disposal systems, and high voltage transmission towers and lines. Co. generates, trades and sells electrical energy to power exchange buyers, traders, energy supply companies and industrial companies as well as households and commercial customers.
  • TickerVER
  • ISINAT0000746409
  • ExchangeVienna Stock Exchange
  • SectorElectricity
  • CountryAustria
Research Team

Raiffeisen Centrobank Equity Daily 21.10.2020

 AT: CA Immo - Successful issuance of EUR 350 mn green bond (neutral)  AT: Telekom Austria - Strong underlying trends outweigh negative roaming and FX effects (positive)  AT: Verbund - Supreme Administrative Court clears last hurdle for closing high voltage network ring (neutral)  PL: mBank - 3Q profit warning on additional provisions for legal risks from FX mortgages (neutral)  PL: PKO BP - BFG sets MREL target at 12.65% by January 2024 (neutral)

Teresa Schinwald

Sector Update Austrian Utilities - New renewables law, new earnings potential

Following the long overdue publication of the draft of the new renewables law that aims to enable 100% renewables coverage of Austrian power demand by 2030and the EU Commissions push for a 55% reduction of CO2 emissions also by 2030, we have taken a closer look at the potential implications of going full green in Austria and the implications for Austrian utilities. We find that EVN has the biggest local potential for the prime yielding technologies wind and PV, while Verbund lacks the home base and might be encouraged to go ahead with new hydro projects, whose levelised cost (of energy, LCOE) ...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Verbund : A merchant profile that is well-adapted to meet “green” targets

After an atypical year marked by an unprecedented slump in electricity consumption, the conditions have come together for electricity prices to resume an upward trajectory. In our view, the ecological shift enshrined in the European stimulus plans will be conducive to a return to earnings growth. The “green” premium is set to underpin the stock, bearing in mind that consensus revisions are now geared more to the upside. Rating raised to Buy from Reduce, with the target price rais...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Verbund : Un profil « merchant » bien adapté pour capter les objectifs de verdissement

Après une année atypique marquée par une chute historique de la consommation d’électricité, les conditions sont maintenant réunies pour que les prix de l’électricité reprennent une tendance haussière. Le virage écologique des plans de relance nous semble propice à un retour de la croissance des résultats. La prime "verte" devrait soutenir le cours sachant que les risques de révision du consensus sont désormais plutôt orientés à la hausse. Opinion relevée à Achat vs Alléger, OC re...

Teresa Schinwald

OMV/Verbund Company News - Verbund acquires GCA from OMV: Operational fit at a fair price

OMV and Verbund announced the sale of a 51% stake in gas transmission system operator (TSO) GasConnect Austria (GCA) for a purchase price of EUR 271 mn. The deal comes at less than half the price of EUR 601 mn Allianz and Snam paid for a 49% stake in GCA in 2016. The closing of the deal will be in 2021.

Dave Nicoski ...
  • Ross LaDuke

Int'l Insights: Developed Markets Leadership Chart Book

Europe in focus The U.S. dollar continues to grind marginally higher, and EM equities have suffered as a result. Meanwhile, RS for the MSCI EAFE index is bottoming when compared to the MSCI EM index, largely due to outperformance in Europe. With developed int'l markets beginning to outperform emerging markets, we recommend adding exposure to the developed int'l space. Below we highlight attractive and actionable themes within developed int'l: • Europe & Japan: Though this is an all-encompassing bottoms-up chart book for developed ex-U.S., make no mistake, the vast majority of today's buy r...

Research Team

Raiffeisen Centrobank Equity Daily 21.10.2020

 AT: CA Immo - Successful issuance of EUR 350 mn green bond (neutral)  AT: Telekom Austria - Strong underlying trends outweigh negative roaming and FX effects (positive)  AT: Verbund - Supreme Administrative Court clears last hurdle for closing high voltage network ring (neutral)  PL: mBank - 3Q profit warning on additional provisions for legal risks from FX mortgages (neutral)  PL: PKO BP - BFG sets MREL target at 12.65% by January 2024 (neutral)

Teresa Schinwald

Sector Update Austrian Utilities - New renewables law, new earnings potential

Following the long overdue publication of the draft of the new renewables law that aims to enable 100% renewables coverage of Austrian power demand by 2030and the EU Commissions push for a 55% reduction of CO2 emissions also by 2030, we have taken a closer look at the potential implications of going full green in Austria and the implications for Austrian utilities. We find that EVN has the biggest local potential for the prime yielding technologies wind and PV, while Verbund lacks the home base and might be encouraged to go ahead with new hydro projects, whose levelised cost (of energy, LCOE) ...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Verbund : A merchant profile that is well-adapted to meet “green” targets

After an atypical year marked by an unprecedented slump in electricity consumption, the conditions have come together for electricity prices to resume an upward trajectory. In our view, the ecological shift enshrined in the European stimulus plans will be conducive to a return to earnings growth. The “green” premium is set to underpin the stock, bearing in mind that consensus revisions are now geared more to the upside. Rating raised to Buy from Reduce, with the target price rais...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Verbund : Un profil « merchant » bien adapté pour capter les objectifs de verdissement

Après une année atypique marquée par une chute historique de la consommation d’électricité, les conditions sont maintenant réunies pour que les prix de l’électricité reprennent une tendance haussière. Le virage écologique des plans de relance nous semble propice à un retour de la croissance des résultats. La prime "verte" devrait soutenir le cours sachant que les risques de révision du consensus sont désormais plutôt orientés à la hausse. Opinion relevée à Achat vs Alléger, OC re...

Teresa Schinwald

OMV/Verbund Company News - Verbund acquires GCA from OMV: Operational fit at a fair price

OMV and Verbund announced the sale of a 51% stake in gas transmission system operator (TSO) GasConnect Austria (GCA) for a purchase price of EUR 271 mn. The deal comes at less than half the price of EUR 601 mn Allianz and Snam paid for a 49% stake in GCA in 2016. The closing of the deal will be in 2021.

Expert Corporate Governance Service (ECGS)

Verbund - AGM 30 April 2019

Item 4: Since there is no vote on Management Board members' remuneration in Austria, we take the opportunity to voice our concerns regarding the remuneration system currently in place at Verbund which we consider has several shortcomings: The target amounts for the short-term incentive (STI) have not been disclosed and the performance criteria are insufficiently disclosed. Furthermore, there is no long-term incentive (LTI) in place for Management Board members. Finally, pension benefits are also insufficiently disclosed. Although we consider the absolute amounts paid to the Management Board me...

Bruno Cavalier ...
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 07/27/2020

After years of unrealised €/$ bullish forecasts the single currency is finally on an upward trajectory. This change of course reflects a radical shift in the perception of the political risk associated with the European Union. The starting point for the rise (17 May) corresponds, moreover to the Franco-German announcement of the stimulus plan project. The European agreement of 21 July to begin the implementation process argues in favour, in a context of an upturn in PMIs, in favour of...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the we...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch