Verbund claims drought costs company 370 million euros in the first half

Austrian utility Verbund announced on Thursday that the 'drought conditions' reduced earnings in the first half by 370 million Euros ($423 Million) compared to a year with normal hydrological conditions.

The exceptionally low water levels during the period affected hydropower, which was responsible for around 85% Verbund's?electricity?generation.

"2026 will be the driest year since we started keeping hydrological records, and that's a 100-year period," Michael?Strugl, Chief Executive of Verbund told reporters. Verbund, Europe's biggest?hydroelectric energy producer, reported that?dry weather had reduced hydropower production by 1.2 Terawatt-hours between January and June. This contributed to a 25 percent drop in core earnings. Hydropower production has been disrupted by low water levels across Europe. Last week, the Danube - which flows from Germany through Austria to the Black Sea - reached record lows. Serbia's state utility reported that its largest "hydropower" plant was producing just one third of its daily average output.

Strugl pointed to wind, solar and battery storage as examples of a "broader portfolio" in terms of generation.

Verbund will expand its?generation capacity to include?Romania and Albania, as well as its core markets Austria and Germany.

(source: Reuters)