Erg 2021 budget up sharply. The company active in the renewable energy sector closed the 2021 financial statements with Net income of 202 million, an increase of 91% compared to 106 million of the previous year, also thanks to lower depreciation, due to the lengthening of the useful life of some assets, and lower financial charges. The board of directors proposed to the shareholders' meeting - convened for 26 April 2022 - the distribution of dividend of €0,90 per share, up on the previous €0,75. The coupon will be detached on Monday 23 May 2022 with payment on 25 May. Furthermore, the renewables group has approved the new 2022-2026 industrial and ESG plan in which it expects to invest almost 3 billion between now and 2026.
The results of the fourth quarter of 2021 are "significantly above expectations thanks to higher volumes/prices" commented the CEO, Paolo Merli, noting the enormous efforts made, with investments "fourfold compared to the previous year and higher than the operating margin gross of 580 million". A solid financial performance despite some "headwinds", characterized by the persistence of the pandemic and the unprecedented increase in commodity prices. “Overall, good indications, we expect a positive reaction from the stock on the stock market”, concluded Merli.
After the publication of the accounts, in Piazza Affari the title Erg it rose against the tide with respect to the Ftse Mib index (-1,08%) by 1,05% to 28,82 euros.
Erg 2021 budget, revenues on the rise with hydroelectricity
In the 2021 i adjusted revenues they amount to 1.232 million, an increase of 258 million compared to 2020 (974 million). This growth was driven by higher hydroelectric production, greater wind conditions in Italy as well as the significant increase in energy sales prices associated with the higher unit value of the incentive in Italy (i.e. from 99 to 109,4 euro/MWh ). The higher installed capacity in France (+80 MW) also contributed to this good performance.
Il very well established adjusted is 580 million euros, up by 99 million compared to 481 million recorded in 2020, thanks to the significant increase in wind and hydroelectric volumes in Italy in a context of favorable price scenario and to the contribution of new farms abroad.
THEadjusted net financial debt is 2.051 million, +612 million compared to 31 December 2020 (1.439 million). The change mainly reflects the impact of recent acquisitions in France, Germany and Sweden (389 million) and investments in the period (258 million).
Il net operating result amounted to 163 million (145 million in 2020) after depreciation and amortization of 263 million (256 million in 2020), which "includes the application of IFRS5 with the reversal of the economic results relating to the hydroelectric business being sold as well as the effects of the write-down of the wind assets subject to repowering".
Erg budget 2021: the outlook for 2022
With the full contribution of the new wind and solar plants and on the basis of the new perimeter, without Hydro and Ccgt, for 2022 the group estimates a gross operating margin in the range between 400 and 430 million, the investments are expected in the range between 420 and 480 million. While, net financial debt is expected to be between 750 and 850 million (2.051 million at the end of 2021), including the distribution of the ordinary dividend of 0,90 euro per share.
The Ligurian group of the Garrones also communicated the financial targets for the period 2022/2026. At the end of the plan, the gross operating margin should be 560 million euros, while total investments will amount to 2,9 billion euros, dedicated to growth in renewables according to a sustainable development model.
Industrial Plan and ESG 2022-2026: 2,9 billion investments
The 2022-2026 business plan sees the group continue to grow in renewables through an increase in installed power of 2,2GW, with investments of 2,9 billion and an EBITDA growing from 399 million euros to 560 million, of which 50% made abroad. Erg will reach 5GW of installed power by 2026 with about a third of the growth in solar and the first developments in storage.
The dividend policy envisages – as previously mentioned – an annual coupon increased to 0,90 euro per share, sustainable over the period of the plan.
At the same time, Erg expects the completion of the valorisation process of the conventional assets with the sale of the CCGT of Priolo expected in the third quarter of this year which will allow the group to finalize the transformation into a pure RES business model. Specifically, the plan sees an increase in the weight of solar energy in the portfolio and the strengthening of the presence in Europe with expansion into new countries such as Sweden and Spain and a quasi-regulated business model with 85-90% of EBITDA guaranteed through participation in auctions or PPAs.
