Driest year on record hurts hydropower producer Verbund's results

Driest Year on Record Slashes Verbund’s Hydropower Profits in 2026

Verbund’s Financial Performance Impacted by Historic Drought

By Danny Callaghan

Profit Decline Driven by Low Hydropower Output

Nov 5 (Reuters) - Austrian energy provider Verbund said on Thursday its core profit fell nearly 30% in the first nine months of 2026, after the driest year on record capped output of its hydropower unit and sales prices waned.

Dependence on Hydropower Generation

The Vienna-based utility's earnings are dependent on hydropower generation, which produced around 85% of its electricity output last year. Europe's rivers recorded their lowest flows in more than three decades this summer.

Key Financial Highlights

• Verbund's EBITDA fell to €1.50 billion ($1.7 billion) in the nine-month period, compared with €2.11 billion a year ago

• Its net profit dropped by around 45% year-on-year

Record-Low Water Supply and Its Consequences

• "Electricity generation from hydropower came under pressure due to the exceptionally low water supply," Verbund said in the report

• Water supply was the lowest since records began around 100 years ago, it added

• Verbund now expects full-year core earnings of around €2.12 billion, at the bottom of the €2.1 billion to €2.4 billion range communicated in July

Additional Information

($1 = 0.8880 euros)

(Reporting by Danny Callaghan in Gdansk, editing by Milla Nissi-Prussak)