ERG raises EBITDA guidance after growing first quarter

ERG raises EBITDA guidance after growing first quarter

(Finance) – ERGa company listed on Euronext Milan and active in the production of electricity from renewable sources, closed on first quarter 2022 with adjusted revenues equal to 214 million, an increase of 77 million compared to the first quarter of 2021 pro forma (137 million) mainly due to the contribution of the increased capacity of 400 MW (of which 231 MW wind power and 170 MW solar) following the foreign acquisitions made in the second half-year 2021 and early 2022 in addition to the entry into operation of the parks developed internally and operational from the end of 2021. The radjusted net result of continuing operations it is equal to 84 million, a significant increase compared to the first quarter of 2021 pro forma (34 million).

“In a context characterized by a geopolitical crisis and unprecedented energy prices, ERG records strong growth results compared to last year, thanks mainly to the contribution of 400MW of new wind and solar capacity resulting from recent significant investments in acquisitions and organic developments – commented theCEO Paolo Merli – Added to this are favorable wind and irradiation conditions which have allowed us to increase the volumes sold by almost 30% compared to the same period of the previous year. Furthermore, the path of geographical diversification continues, for the first time over 50% of the group’s EBITDA comes from activities abroad while in Italy, in spite of the debated “extra-profits”the price effect had a substantially neutral impact as a consequence of strongly negative balances both for hedging derivatives and for the value of the incentive, both inversely related to the price of energy “.

“The positive results of the quarter – he added – and the greater contribution of the new plants, both those already in operation and those that will be in the coming months, in a context that remains highly volatile and uncertain, allow us to hypothesize a guidance from EBITDA now expected in the range between 450-480 million (+50 million euros compared to the previous, ed). The guidance for the investments between 420-480 million andnet financial debt, between 750 and 850 million euros, which prudently discounts the potential effects envisaged by the introduction of art. 37 of Legislative Decree 21 March 2022 awaiting the relative approvals and application methods “.

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