Coronavirus effect contained for Erg. The Ligurian company has released its first quarter accounts, which indicate only a slight decrease in results, despite the difficult context. EBITDA, for example, is down (-4% to 156 million), but mostly due to the very low wind in Italy, compared to the particularly high one of the previous year. 50% increase on the other hand for the profitability of assets abroad. It's just abroad that Erg's development plan continues at full speed, particularly in wind power, with the acquisition of 38 MW in France and the permits for the construction of a 36 MW wind farm in Poland: the overall construction of around 285 MW continues throughout Europe.
The net operating result decreased by 11% to 82 million, with the group net result substantially stable at 53 million. Improve your financial position compared to 31 December 2019: 61 million less net debt. However, the coronavirus will also affect the 2020 guidance. In fact, also in the light of the potential impact of COVID-19, the forecast of the gross operating margin is revised downwards by 4%, in a range now between 480-500 million, as is the estimate of investments reduced by 35 million in the range of 150-180 million. Net financial debt was also down by approximately 10 million between 1.350 and 1.430 million euro compared to the previous forecast.
“The serious health emergency linked to the COVID-19 pandemic – he commented the managing director of Erg, Luca Bettonte – represents an unprecedented challenge to which we are trying to respond promptly and effectively, guaranteeing business continuity and the best possible standards in terms of health and safety. We are making extensive use of smart working in which around 70% of the company population is still involved. The slightly down gross operating margin was affected by the lack of wind in Italy compared to the particularly high one of the previous year, only partially offset by the contribution of the excellent performance and the greater wind capacity installed abroad”.
“The contribution of the Solar and Hydroelectric sectors is substantially in line – added Bettonte -: the latter, despite recording an increase in production, continues to be penalized by a persistent shortage of water, with volumes well below historical averages. Thermoelectric was down slightly due to the lower amount of energy efficiency certificates produced following the expiry of the incentive period of a part of the CCGT plant”.
