Net result and GOP growing for Erg in the first quarter. The group - now exclusively positioned in renewables after the sale of TotalErg in January 2018 - achieved an adjusted group net result of 56 million (+3%) while the EBITDA rose by 7% to 162 million, from 151 million in the first three months of 2017. In the first quarter of 2018, core business revenues amounted to 284 million, down from 300 million in 2017 and lower than market expectations. The company announced it.
Luca Bettonte, managing director of Erg, comments favorably on the management trend: the results for the first quarter "are improving compared to last year". Furthermore, to reflect the recent acquisition of Epuron in France, whose closing is expected in these days, the company increases its forecast of investments at the end of the year by "about 500 million, from the previous 450 million, and net debt to about 1,3, 1,26 billion from the previous 172 billion, including the imminent distribution of dividends for XNUMX million euros”.
Looking at the data in more detail, Erg recalls that after the sale of TotalErg, completed on 10 January 2018, "the comparison of the 2018 results with those of the corresponding periods of 2017 is therefore affected by this change in perimeter: therefore, in order to facilitate the understanding of the trend in the two
periods and in consideration of the new strategic and industrial positioning of the Group
proceeded to modify the 2017 comparative economic data excluding the adjusted results
of the joint venture TotalErg previously consolidated”. In the first quarter of 2017 such
contribution was positive for 6 million (+24 million in the whole of 2017).
Looking at EBITDA, wind power grew to 107 million compared to 104 in the first quarter of 2017, "mainly as a consequence of the better results abroad (+7 million)" due to both better wind conditions and the Brockaghboy in the UK and greater capacities installed in France and Germany. Solar also did well with an EBITDA of 5 million, relating to the plants acquired at the beginning of 2018 from Forvei. Hydroelectric (35 million) was in line and thermoelectric was up (18 million compared to 14 in the same period of 2017).
Investments in the first quarter rose to 365 million mainly due to the acquisitions in solar energy in Italy (30 plants with an enterprise value of 346 million and new installed capacity of 89 MW) and in wind energy in France (17 million). The operating data show an increase in wind power generation (+15%), a 22% increase in hydroelectric production and a 12% decrease in thermoelectric production, with an overall balance up by 9%.
However, the market penalizes the Erg share in Piazza Affari due to the decrease in revenues and the shares are down by 3,8% to 19,8 euros when the Ftse Mib is up by 0,32% around 12,39 on Tuesday May 15th.
Updates:
The acquisitions in France, reported in the quarterly and to which the acceleration of investments for 2018 is mainly attributed, was completed on Tuesday 15 May. The group communicated this in the afternoon, specifying that it had concluded the transaction through its subsidiary ERG Power Generation SpA. Erg acquired Parc Eolien du Melier SAS, owner of an 8 MW park, Parc Eolien de la Vallée de Torfou SAS, owner of a wind farm under construction of 18 MW and Epuron Energies Renouvelables SAS owner of a pipeline of approximately 750 MW in various stages of development.
"Through this operation - specifies the official press release - Erg will bring its installed capacity in France to 300 MW by the end of the year, in addition to expanding and accelerating the path of organic growth in line with the objectives of the industrial plan".
