Third quarter of 2017

  • Consolidated recurring EBITDA: €98 million, €78 million in the 3rd quarter of 2016
  • Recurring Group net result: €26 million, €9 million in the 3rd quarter of 2016

Nine months of 2017

  • Consolidated recurring EBITDA: €356 million, €351 million in the 9 months of 2016
  • Recurring Group net result: 113 million, €83 million in the 9 months of 2016

Genoa, 10 November 2017 - At its meeting held today, the Board of Directors of ERG S.p.A. approved the Interim Management Report at 30 September 2017.

Consolidated recurring financial results

3rd Quarter

Performance highlights (million Euro)

First nine months

2017

2016

Var. %

2017

2016

Var. %

98

78

27%

EBITDA

356

351

2%

36

13

174%

EBIT

168

158

7%

26

9

203%

Group net result

113

83

37%

30.09.17

31.12.16

Variation

Net financial debt (million Euro)

1,370

1,557

-187

Leverage

43%

47%

Luca Bettonte, ERG's Chief Executive Officer, commented: 'The quarter's results show a strong growth over last year in the sectors of both programmable sources and non programmable sources. The wind power business performed well, with good wind conditions recorded both overseas and in Italy, where it benefited from a favourable price scenario, as did the hydroelectric power division, which by exploiting its flexibility was able to take advantage of the improvement in prices, thereby offsetting the scarce water availability during the period. A good performance was also reported by the thermoelectric power division, supported inter alia by the trend in White Certificate prices. In view of these results and given the still favourable price scenarios anticipated for the coming months, we have carried out an upward adjustment of our year-end guidance. We forecast EBITDA of Euro 455 million, in line with the 2016 result, and a further reduction in net debt to around Euro 1,300 million, owing to the increase in cash flow, the Euro 71 million in dividends paid by TotalErg and the expected reduction in investments to Euro 100 million. Following the recent extraordinary transactions and in anticipation of an imminent and clear definition of the regulatory and competitive situation insofar as concerns the geographical areas of interest to us, also with regard to the matter of repowering, we consider it appropriate to reschedule for early 2018 our presentation of the Business Plan.'

Recurring results do not include inventory gains (losses) and non-recurring items.

Recurring Group net result does not include inventory gains (losses), non-recurring items or applicable theoretical taxes.

The ratio of total net financial debt (including project financing) to net invested capital.

ERG S.p.A. published this content on 10 November 2017 and is solely responsible for the information contained herein.
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