Austrian power producer Verbund posts record loss as drought slashes hydro output

Austria’s biggest electricity generator Verbund warned that a severe drought has left its hydro plants operating with one‑third less water than usual. The shortfall cut hydro generation by 1.2 TWh in the first half of the year, creating a €370 million gap in the company’s earnings. As a result, Verbund’s EBITDA fell about 25 % to €1.06 billion and net‑adjusted profit dropped 31 % to €537.8 million.

CEO Michael Strugl said the company was forced to buy back electricity on the market, costing roughly €200 million, because its usual hedging contracts could not cover the low‑water year. While the hedging policy remains unchanged, the firm is now looking to diversify its generation mix and geographic exposure to guard against increasingly frequent dry summers.

Verbund emphasized that despite the reduced hydro output, electricity supply for the country remains secure, with solar, pumped‑storage, thermal plants and imports compensating for the shortfall.