Verbund share value tumbles as turnover shrinks

Energy sector giant Verbund AG has suffered a turnover decrease.The Viennese firm, in which the Republic of Austria holds a 51 per cent interest, said today (Weds) its turnover shrank by five per cent to 3.3 billion Euros in 2010. Verbund added that its earnings before interest, taxes, depreciation and amortisation (Ebitda) declined by 15.4 per cent to 1.06 billion Euros.The electricity provider explained weak wholesale prices and one-off effects dampened its performance last year.Verbund chief Wolfgang Anzengruber said in December there was “no chance” for consumer price reductions in the foreseeable future. “Energy trading prices have been low recently, but are currently edging up again,” he told the Kurier newspaper at that time.Verbund angered consumer pressure groups in May by increasing the price for one kilowatt hour of electricity from 6.5 cent to 7.3 cent. The Austrian Labour Chamber (AK), accused Verbund of “putting new pressure on customers” in economically difficult times.Verbund, which was founded in 1947, manages 126 power plants. The company has around 230,000 customers.It entered the Vienna Stock Exchange (WBAG) in 1988. The value of one share of the company dropped by 4.4 per cent, after today¬ís announcement of 2010 performance figures, to 26.6 Euros.