Q2 2024 ERG SpA Earnings Call Transcript
Key Points
- ERG SpA (STU:ER9) reported a 4% year-on-year increase in EBITDA, reaching EUR281 million, driven by larger installed capacity and full consolidation of the US portfolio.
- The company successfully issued its fourth green bond for EUR500 million, extending its average debt duration to over 5 years.
- ERG SpA (STU:ER9) completed significant projects, including a 101-megawatt capacity project in Sicily and acquisitions in the US and France.
- The company maintained a strong financial structure, with Fitch confirming its investment-grade rating.
- ERG SpA (STU:ER9) is on track to reach its target of 3.9 gigawatts of installed capacity by the end of the year, with significant contributions expected from new assets in 2025.
- Adjusted net profit decreased by 7% year on year to EUR106 million, impacted by higher depreciation, financial charges, and a higher tax rate.
- EBITDA outside Italy decreased by 16% year on year due to tough price scenarios in European countries, particularly in Germany and Spain.
- The net financial position increased to EUR1.9 billion, reflecting investments, buybacks, and dividends.
- The company faces challenges in Spain with high volatility in power prices, impacting revenues.
- ERG SpA (STU:ER9) is awaiting regulatory clarity in Italy for its repowering projects, which could delay final investment decisions.
Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the ERG second-quarter 2024 results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Paolo Merli, CEO of ERG. Please go ahead, sir.
Good afternoon, everyone, and welcome to our second-quarter and first-half results presentation. Here with me, as usual, is our CFO, Michele Pedemonte, who will run you through our business performance over the period in, say, more detail later on.
So let's get started with the overview of results over the period. I'm on page number 4, and now I'll focus on first-half results. Then Michele will elaborate more on second-quarter figures.
EBITDA closed at EUR281 million, up 4% year on year, mainly driven by the larger installed capacity, which included the full consolidation of the US portfolio as of April 1. The higher production for about 0.7 gigawatt hour over the first six months of the
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