The Board of Directors of ERG S.p.A. approves the consolidated results for the first quarter of 2024
The Board of Directors of ERG S.p.A. approves the consolidated results for the first quarter of 2024
Adjusted consolidated EBITDA1: EUR 165 million, EUR 164 million in the first quarter of 2023 Adjusted profit attributable to owners of the parent: EUR 78 million, EUR 78 million in the first quarter of 20232
2024 Guidance confirmed, EBITDA between EUR 520 million and EUR 580 million
Solid first-quarter results – Results increased slightly compared to the same period in 2023 despite a sharply declining price scenario, mainly as a result of increased output due to the contribution of new plants, repowered or greenfield developed in-house, and acquisitions made during 2023 and early 2024. The lower market scenario only partly impacts the results due to the Group’s hedging policy of selling through fixed rates, PPAs and CFDs.
Entry into the US market – On 24 April, the closing was finalised for the acquisition from Apex Clean Energy Holdin- gs LLC of 75% of the portfolio consisting of one wind plant and one solar system in the US, both in operation, for a total of 317 MW of installed capacity and an estimated output of approximately 1 TWh. It should be noted that the results for the quarter do not yet reflect the effects of this acquisition.
Energisation of the third wind farm repowering started – In April, the energisation of the Mineo-Militello-Vizzini wind farm began (101 MW), the third and largest in the Group’s portfolio of plants subject to a total technological renovation, confirming the centrality of repowering in ERG’s business strategy.
Growth and PPA – During the quarter, the 47-MW greenfield wind power plant in Roccapalumba in Sicily was commissioned. Revenue relating to the entire generation will be sold through a twenty-year Pay-as-Produced PPA with Google, a fundamental tool in a context of strong price volatility.
Financial Strategy – Fitch affirmed ERG S.p.A.’s Long-Term Issuer Default Rating (IDR) and senior unsecured rating at BBB- with a stable outlook. In an energy scenario characterised by increasing volatility, the rating reflects the solidity of the Group’s business model and its portfolio.
ESG – In February, for the second consecutive year, ERG was included in the CDP “A List”, confirming the validity of the decarbonisation strategies implemented by the Group. In January, ERG was again included in the “Global 100 Most Sustainable Corporations in the World” of Corporate Knights, ranking in 28th place (previously 53rd), first among the Italian companies.
2024 Guidance – Guidance confirmed with an estimated EBITDA in the range of EUR 520 to 580 million, capital expenditure expected in the range of EUR 550 to 600 million. Net financial indebtedness is expected to be between EUR 1,750 million and EUR 1,850 million3, including the distribution of the ordinary dividend of EUR 1 per share.
Gender equality achieved in the new BoD – ERG’s Shareholders’ Meeting appointed the new Board of Directors for the next three years with the addition of four new female directors. Gender equality is thus achieved in the composition of the Board, which now consists of six men and six women.
Genoa, 15 May 2024 – The Board of Directors of ERG S.p.A. has approved the consolidated results for the first quarter of 2024.
Paolo Merli, Chief Executive Officer of ERG, commented: “In the first quarter of 2024, against a backdrop of contraction and high volatility in energy prices, ERG once again demonstrated strong resilience posting solid results, slightly up on the previous year, thanks mainly to the contribution of new installed capacity, including our first repowering projects. In April, we finalised our entry into the US renewables market, which will begin to contribute financially from the second quarter. Despite a complex price scenario, for 2024 we confirm the guidance for an estimated EBITDA in the range of EUR 520-580 million and capital expenditure of EUR 550-600 million. Net financial indebtedness is expected to be between EUR 1,750 million and EUR 1,850 million, including the distribution of the ordinary dividend of EUR 1 per share.”
1Starting from this press release, the adjusted economic results include the accounting impacts of IFRS 16. The comparative results for 2023 are therefore restated in line with the new approach defined by the Group.
2It should be noted that the adjusted profit attributable to owners of the parent, relating to the comparative period 2023, refers to the scope of “Continuing operations” and therefore does not include the contribution of the thermoelectric business sold in October 2023.
3The net financial indebtedness shown is “before IFRS 16”. Therefore it does not include the IFRS 16 liability, equal to EUR 172 million (actual year 2023) and EUR 210 million (guidance 2024), respectively.