Erg closed 2018 with an adjusted net profit for 2018 down by 9% compared to 2017 at 107 million, less than the 122 million expected by the Bloomberg consensus. The adjusted data exclude the one-off components and the 2017 values were processed, for a homogeneous comparison, excluding the sale of TotalErg, completed on 10 January 2018, which marked the definitive exit from the oil world of the Erg group to focus on energy production 100% electricity from renewable sources.
The group led by Luca Bettonte explained the decrease in net profit as the consequence of the drop in operating results, higher depreciation and higher financial charges, associated with a lower remuneration of liquidity and higher debt relating to the investments made, despite a lower average cost of debt than in 2017, thanks to the liability management transactions completed in the first half of 2018. Adjusted Ebitda (GOP) amounted to 491 million, up 4% from 472 million in 2017, but also in this case below consensus forecasts (498 million). The positive change of 18 million reflects the following factors: wind -42 million, solar +32 million, hydroelectric +53 million, thermoelectric -26 million.
Adjusted Ebit (net operating result) instead decreased by 2% from €220 million to €216 million against ever higher expectations (€225 million), after depreciation and amortization of €275 million, up by €23 million compared to 2017 (€252 million) following mainly new solar investments and wind farm acquisitions in France during 2018. At the end of 2018 net financial debt stood at 1,343 billion, 110 million more than a year earlier and just above analysts' estimates of 1,339 billion.
“2018 saw, in addition to the completion of the group's industrial transformation process, a strong acceleration with respect to the growth objectives in renewables, thanks to the acquisition of 89 MW in the solar sector in Italy and the increase of 55 MW in the context of the development of the wind pipeline in France. EBITDA of 491 million is up both on the 472 million in 2017 and on the year-start estimate of 475 million, and in line with the upwardly revised guidance in June”, explained the CEO Luca Bettonte. The manager then pointed out that “the exercise has overall benefited from the contribution of the new wind and solar capacity in France and Italy and the excellent performance of the hydroelectric sector, despite a fourth quarter characterized by reduced margins in the thermoelectric sector, mainly due to the lower valuation of white certificates, and low wind conditions both in Italy and abroad”.
As regards the dividend, Erg will detach a coupon of 0,75 euro per share from the 2018 financial statements, unchanged compared to 2017 if we consider that of the 1,15 euro paid last year, 0,4 euro was extraordinary. At the opening of the session, the Erg share lost share in Piazza Affari, where it lost almost 3% to 17,10 euros per share, shortly after 10.
