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UPDATE 1-Verbund H1 EBIT down slightly on power prices

Published 07/28/2009, 02:39 AM
Updated 07/28/2009, 02:40 AM

* H1 EBIT down 5.4 percent to 564.2 million euros

* Decline in spot prices and one-offs weigh

* High rainfall gives boost to hydropower unit

* Reiterates aims for stable results in 2009

(Adds detail)

VIENNA, July 28 (Reuters) - Austria's biggest utility, Verbund, reported a slight fall in first-half operating profit on Tuesday due to lower power prices and one-off effects.

High rainfall, however, helped boost its hydropower business, softening the blow to group results.

Earnings before interest and taxes (EBIT) fell 5.4 percent to 533.7 million euros ($762 million), Verbund said. Net profit fell 16 percent to 359.9 million euros.

Verbund, which generates a large portion of its power from Austrian hydro-electric dams, said higher rainfall and more efficient plants had led to a 4 percent rise in hydro power production.

Spot power prices fell sharply, Verbund said. Base load and peak electricity prices fell 35 percent and 36 percent, respectively. One-offs linked to terminated cross-border links and revaluations of securities also hit earnings.

The group reiterated it aimed for similar operating results in the full year as last year.

Verbund shares have risen 10.6 percent since the start of the year, outperforming a 9.7 percent fall in the DJ Stoxx European utilities index. ($1=.7004 Euro) (Reporting by Sylvia Westall; editing by Simon Jessop)

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