Latest news with #Verbund
Yahoo
30-04-2025
- Business
- Yahoo
Austrian government appoints coordinator for Ukraine's reconstruction
Austrian Foreign Minister Beate Meinl-Reisinger has introduced the special coordinator for Ukraine's reconstruction, Wolfgang Anzengruber, the former Chairman of the Board of the Verbund energy concern. Source: European Pravda with reference to the Austrian daily newspaper Die Presse Details: In her account on X (Twitter), Beate Meinl-Reisinger said that the Austrian federal government had made Ukraine's reconstruction a priority - "both to support Ukraine itself and in the interests of the Austrian economy and, therefore, the Austrian people". "I am very pleased that we have been able to attract Wolfgang Anzengruber, a recognised expert who knows entrepreneurship, business and energy issues like few others. That is why he is the ideal candidate to help Austria in its reconstruction efforts," added Meinl-Reisinger. At a briefing on 30 April, the Austrian foreign minister said that about 200 Austrian companies are already operating directly in Ukraine, creating jobs and contributing to stability. "We have strong companies with the necessary expertise," she said. Anzengruber, the former chairman of the board of the Verbund energy concern, in turn, named green energy, hydropower, infrastructure, mechanical engineering, road construction, housing, services, insurance and finance as priority areas. He said that this is "a complex and multifaceted job". Meanwhile, the far-right Austrian Freedom Party (FPÖ) criticised the appointment. "The most expensive government in history has once again created a 'warm seat' for a person from the ÖVP circle, a position that does not provide anything for Austrian citizens," said FPÖ foreign policy spokesperson Susanne Fürst. She added that Ukraine's reconstruction is possible only after the war is over, and Austria should not take responsibility for it. Support Ukrainska Pravda on Patreon!
Yahoo
26-03-2025
- Business
- Yahoo
Verbund AG (OEZVF) (Q4 2024) Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: Not explicitly mentioned in the transcript. EBITDA: Decreased by 22.5% to EUR3.48 billion. Hydro Segment EBITDA: Decreased by 23% to EUR3 billion. New Renewables Segment EBITDA: Decreased by 25% to EUR170 million. Sales Segment EBITDA: Increased to EUR7 million. Grid Segment EBITDA: Decreased to approximately EUR284 million. Gas Connect Austria EBITDA: Approximately EUR86 million. Group Result: Decreased by 17% to EUR1.87 billion. Operating Cash Flow: Decreased to EUR3.25 billion. Free Cash Flow After Dividends: Decreased to EUR145 million. Net Debt/EBITDA: At 0.6 as of December 31. Dividend Proposal: EUR2.8 per share for 2024. CapEx Plan: Increased to EUR5.9 billion over the next three years. 2025 EBITDA Guidance: Between EUR2.7 billion and EUR3.3 billion. 2025 Group Result Guidance: Between EUR1.35 billion and EUR1.75 billion. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verbund AG (OEZVF) reported a significant increase in hydro generation, with a 9.6% rise to 33,448 gigawatt hours compared to 2023. The company successfully commissioned new renewable power plants in Spain, Austria, and Germany, contributing to increased generation from wind and PV. Verbund AG (OEZVF) completed important projects like the 45-megawatt ReiBeck II pumped-storage power plant and the 11-megawatt Gratkorn run-of-river power plant. The sales segment showed improvement, with EBITDA increasing to a slightly positive value of EUR7 million, driven by lower procurement costs. The company plans to invest EUR5.9 billion over the next three years, focusing on growth and maintenance, particularly in the regulated Austrian electricity grid and renewable generation projects. Verbund AG (OEZVF) experienced a decrease in average achieved contract prices, impacting overall results despite increased generation volumes. EBITDA in the hydro segment decreased by 23% to EUR3 billion due to lower achieved contract prices. The new renewables segment saw a 25% decrease in EBITDA to EUR170 million, affected by lower achieved prices and higher operating expenses. The Grid segment recorded lower contributions from Gas Connect Austria and Austrian Power Grid, with a significant negative impact expected in 2025. The company faces uncertainty regarding the Austrian windfall tax and potential adjustments to the price cap, which could affect future financial results. Q: What is the impact of the new tax in Austria on Verbund's financials, and how does it affect future projections? A: Peter Kollmann, CFO, explained that the new tax could range between EUR50 million to EUR100 million for 2025. The government aims to collect EUR200 million annually from the energy sector, and Verbund, being a major player, will contribute significantly. The tax's future impact depends on potential changes in the price cap and the ability to offset investments against the tax. Q: Can you provide more details on Verbund's hedging strategy and achieved power prices? A: For 2025, Verbund has hedged approximately 74% of its production at EUR117 per megawatt hour. The unhedged portion is currently marked at EUR90, leading to a mark-to-market price of EUR109. For 2026, 42% is hedged at EUR80, with a mark-to-market price of EUR82. Q: How does Verbund plan to manage the lower hydro coefficient and potential buybacks of power? A: The hydro coefficient is currently 14% below the long-term average. Verbund typically hedges only 80% of its production, reducing the likelihood of needing to buy back power. However, if conditions remain dry, there is a possibility of buybacks, although it is considered a low-probability event. Q: What are Verbund's plans for renewable investments, particularly in Spain, and how do they manage risks associated with these projects? A: Andreas Wollein, Head of Group Finance and Investor Relations, stated that Verbund aims to develop 1.7 gigawatts of renewable capacity in Spain, focusing on solar and wind projects. They plan to mitigate risks through long-term PPAs, although some merchant exposure will remain to optimize generation. Q: How does Verbund view the potential for increased gas plant utilization in light of lower hydro production? A: Verbund's CCGT in Mellach is efficient and modern, but the company does not plan further investments in gas plants, as it focuses on renewable energy. The existing gas plant can help stabilize the system during low hydro production periods. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
23-03-2025
- Business
- Yahoo
BASF Commissions Electrolyzer for Major German Hydrogen Production Project
German multinational chemical company BASF has commissioned that country's largest proton exchange membrane (PEM) electrolyzer. The company said the 54-MW facility will have an annual capacity of as much as 8,000 metric tons of hydrogen. The electrolyzer is located at BASF's Ludwigshafen site. It is designed to produce zero-carbon hydrogen, using electricity from renewable energy resources, with capacity to supply the main plant at the site with up to one metric ton of chemical feedstock each hour. BASF commissioned the facility on March 17, two years after the start of construction. The water electrolyzer was built in cooperation with Siemens Energy. BASF officials in a news release said the electrolyzer "is embedded in the production and infrastructure at the Ludwigshafen site, making it truly unique in terms of its interface and integration into a chemical production environment." The system includes 72 stacks, which are the modules in which the actual electrolysis process takes place. Officials said the electrolyzer has the potential to reduce greenhouse gas emissions at BASF's main plant by up to 72,000 metric tons per year. [caption id="attachment_231267" align="alignnone" width="640"] The individual electrolyzer modules are linked to each other and to the H2 network at the Ludwigshafen site in three so-called arrays. Source: BASF SE[/caption] BASF said that after it's produced, the hydrogen is fed into the site's hydrogen Verbund network and distributed to the production facilities as a raw material. BASF, in addition to using it as a feedstock for chemical products, plans to supply hydrogen for mobility in the Rhine-Neckar Metropolitan Region, supporting the development of a hydrogen economy in the area. "The commissioning of the electrolyzer makes it possible for us to support our customers in achieving their climate targets by offering them products with a lower carbon footprint," said Katja Scharpwinkel, a member of BASF's executive board and the site director at Ludwigshafen. "At the same time, we are gaining experience at our largest Verbund site with the integration and operation of a system that brings us another step closer to transforming our main plant in Ludwigshafen. We welcome the fact that the federal government and state government have recognized the importance of this technology and provided us with significant support toward the project's implementation." Katrin Eder, Rhineland-Palatinate's state minister for Climate Protection, Environment, Energy, and Mobility, said, "BASF has embarked on an ambitious path to net zero. In addition to progressively increasing its generation of electricity and process heat from renewable energies, the company also plans to use renewable raw materials as alternatives to the fossil energy sources currently employed, such as natural gas. Designed to produce green hydrogen as a raw material, the new electrolyzer at the Ludwigshafen location represents an important milestone and supports the achievement of Rhineland-Palatinate's climate protection targets." [caption id="attachment_231268" align="alignnone" width="640"] A worker inspects equipment during a plant tour through the new electrolysis plant. Source: BASF SE[/caption] Several agencies have supported the project. The German Federal Ministry for Economic Affairs and Climate Action, in cooperation with the State of Rhineland-Palatinate, provided funding of up to €124.3 million ($135.2 million) for the construction of the plant, with €37.3 million ($40.6 million) of that financed by the government of Rhineland-Palatinate. BASF's investment in the project amounts to about €25 million ($27.2 million). The project, called Hy4CHem, was selected as part of the IPCEI Hydrogen expression of interest procedure and subsequently funded as an individual project. [caption id="attachment_231269" align="alignnone" width="640"] The heart of the electrolyzer facility at the Ludwigshafen site comprises a total of 72 stacks. Source: BASF SE[/caption] Alexander Schweitzer, minister-president of Rhineland-Palatinate, said, "The commissioning of the electrolyzer at BASF for the production of green hydrogen is a milestone for the ramp-up of the hydrogen economy in Rhineland-Palatinate, Germany, and Europe and an important commitment of BASF to its technology and production site in Ludwigshafen. With the Hy4Chem project, BASF is impressively demonstrating how the transformation of the energy-intensive chemical industry can succeed—innovatively, sustainably, and internationally competitively. As the state government, we support this process with up to €37.3 million because we are convinced that hydrogen plays a key role in decarbonizing and securing our industrial jobs. Today's inauguration sends a strong signal for a climate-neutral future and strengthens Ludwigshafen as a business location." "I am delighted that the federal government's efforts to support the hydrogen economy in Germany are bearing fruit," said Udo Philipp, state secretary at the Federal Ministry for Economic Affairs and Climate Action. "A flagship project for the integration of hydrogen into a chemical production site has become a reality at the Ludwigshafen site. It is the largest project of its kind in Germany to date, making it an important pioneer as we strive to achieve our climate targets. Through this collaboration, BASF is demonstrating what decarbonization of the industrial sector can look like in practice and inspiring further technological progress.' Hydrogen previously has primarily been produced at the Ludwigshafen site through the use of natural gas-based steam reforming, or as a coupling product and by-product. —Darrell Proctor is a senior editor for POWER.
