Profitability growing, but revenues and profits slightly down. Erg's board of directors approved the 2019 accounts, closed with a consolidated EBITDA equal to 504 million euros, 13 million more than the previous year. L'Net income it stood at 104 million euros, down by 3 million compared to 2018.
Also slightly down adjusted revenues, equal to 1,022 billion compared to 1,027 in 2018, "as a result of volumes in hydroelectric much lower than the exceptionally high ones of last year, partly offset by the increase in wind and solar production, both in Italy and abroad abroad”, explains the company in a note.
The board of directors will propose to the assembly a dividend equal to 75 cents per share, stable compared to 2018.
AS OF 31 December 2019, the iadjusted net financial debt it increased by 133 million compared to the previous year, reaching 1,476 billion. “The change mainly reflects the investments for the period (432 million), the distribution of dividends (112 million), the extraordinary expenses incurred for the important liability management transactions (43 million), and the payment of taxes (41 million). All of this, partly offset by the positive cash flow for the period (492 million) also following the reduction in the timing of the collection of incentives in Italy”, Erg points out.
Bettonte added: 'EBITDA of 504 million is up from 491 million in 2018 and is at the top end of the mid-year guidance. This excellent result was achieved despite a much lower performance in Hydroelectric, due to a decidedly dry year, and the weak trend in energy prices, both in Italy and abroad. The good wind conditions in the countries where we operate, the important result obtained in the thermoelectric sector, thanks to the trend in the price of gas, but above all the full contribution of the greater operating capacity developed of 198 MW, are the factors that have allowed us to grow further, and to exceed 500 million mol".
As regards the new projects, the CEO explains that "in 2019 we also completed the authorization procedures abroad which allow us to start new construction sites in 2020 for the construction of approximately 285 MW between the United Kingdom, France and Poland, while the authorization procedure for the our Repowering project portfolio, in compliance with the provisions of the Business Plan. Overall, we therefore confirm our goal for 2022 of increasing installed capacity by approximately 850 MW compared to 2017, of which approximately 350 MW have already been completed".
Speaking of the financial targets, “For 2020 – commented the CEO Luca Bettonte – we expect a gross operating profit of between 500 and 520 million, up on last year, and a net debt reduction of between 1.360 and 1.440 million, including investments which will amount to between 185 and 215 million, dedicated almost entirely to the construction of the greenfield projects of our pipelines in Great Britain, Poland and France”.
