Erg ended the first nine months of 2017 with revenues of 765,3 million euros, a slight increase compared to the 757 million obtained in the same period of the previous year, despite the presence of significantly lower RES production compared to the same period of the 2016 due to extremely adverse weather conditions (wind and water).
However, the drought did not stop the performance of the company which produces almost exclusively energy from renewable sources. In fact, the environmental factors were more than offset, mainly by the average increase in both energy prices and incentives and Energy Efficiency Certificates. The gross operating margin also increased slightly, going from 351 million to 356 million euros (+2%); as a result, margins rose from 46% to 47%. Erg closed the January-September period with a net profit of 113 million euros, an improvement of 37% compared to 83 million in the first nine months of 2016.
In the third quarter alone, ERG recorded a net profit of 26 million euro. At the end of September, net debt had fallen to 1,37 billion euros, compared to 1,56 billion at the beginning of the year, mainly due to the positive net operating cash flow from the collections of incentives relating to production in the first quarter of 2017, to pursuant to current legislation, and the collection of the sale of Energy Efficiency Certificates produced in 2016. In the first nine months of 2017, the company invested a total of 37 million euros.
ERG's management expects to close 2017 with a gross operating margin of around 455 million euro, while net debt should amount to around 1,3 billion euro, against new investments expected for around 100 million. Today on the Stock Exchange, the Erg share is approaching 15 euros per share, gaining more than 1% with two hours to go until the closing of the last weekly session.
