The energy market environment for the development of our business continued to present a very positive picture in the reporting period. Prices for primary energy sources in particular rose sharply in quarters 1-3/2021. Below-average gas storage inventories, unfavourable weather conditions and interruptions to supply in an environment in which demand was recovering from the COVID-19 lows were driving forces behind the substantial increase in natural gas and coal prices worldwide. China, too, was asking for more liquefied natural gas (LNG). Prices for European CO₂ emission rights likewise increased significantly at the same time, thus also pushing up wholesale electricity prices in Europe, which are fuelled by primary energy prices and prices for CO₂ emission rights. Wholesale electricity prices in Europe are a key value driver of VERBUND's business performance.

VERBUND's share price also benefited from this positive market environment, reaching a new all-time high of €95.55 on 14 September 2021. VERBUND's market capitalisation on this date hence amounted to around €33.2bn.

The results posted by VERBUND for quarters 1-3/2021 were very encouraging. EBITDA increased by 16.3% to €1,150.6m, while the Group result rose by 23.0% to €587.4m. The adjusted Group result increased by 20.9% to €566.2m. At 0.99, the hydro coefficient for the run-of-river power plants was 1 percentage point below the long-term average and 1 percentage point above the comparative prior-year figure. Generation from annual storage power plants fell by as much as 10.7% in quarters 1-3/2021 due to reduced turbining. Generation from hydropower thus decreased by a total of 589 GWh compared with the prior-year reporting period. However, the significant increase in short-term wholesale electricity prices gave a boost to earnings - unlike futures market prices, which declined in the period under review. Consequently, the average sales price obtained for our own generation from hydropower rose by €7.4/MWh to €51.3/MWh. The full consolidation of Gas Connect Austria GmbH also resulted in a positive contribution to earnings (full consolidation as at 31 May 2021).

Forecast for 2021
Based on expectations of average own generation from hydropower and wind power in quarter 4/2021 and the opportunities and risks identified, VERBUND currently expects EBITDA of between around €1,490m and €1,590m and a Group result of between around €740m and €810m in financial year 2021. VERBUND's planned payout ratio for 2021 is between 45% and 55% of the Group result of between around €720m and €790m, after adjustment for non-recurring effects.

Additional information as well as the Interim Report for quarters 1-3/2021 is available at www.verbund.com > Investor Relations > Latest financial results.