ERG’s net profit remains flat in Q1 2023

Italy-based independent power producer (IPP) ERG SpA (BIT:ERG) on Friday reported a first-quarter adjusted net profit from continuing operations of EUR 84 million (USD 91.7m), unchanged from a year ago, and confirmed its full-year guidance.

The Italian firm operates roughly 3.04 GW of wind and solar farms in several European countries. In January-March, it booked adjusted metrics that exclude the effects of clawback measures adopted in a range of countries to offset the increase in power prices and led to refunds with a negative impact. The adjusted project also includes the contribution of ERG Power Srl, the owner of a gas-fired plant, which is recognised in discontinued operations.

When not taking into account these effects, net profit from continuing operations came at EUR 78 million, up from EUR 67 million a year back.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were burdened by around EUR 7 million from refunds, coming at EUR 164 million. On an adjusted basis, gross of clawbacks and net of special items, the total amounted to EUR 167 million compared to EUR 168 million recorded a year before.

ERG’s reported revenues slipped by 0.9% but improved on an adjusted basis. More details about the company’s performance are available in the table.

During the reporting period, ERG’s power plants generated 1,780 GWh of electricity, which came mostly from Italian assets and was up from 1,538 GWh in the same period of 2022.

The Italian firm reiterated its 2023 forecast, expecting EBITDA of between EUR 500 million-550 million, net of clawbacks. After a recent solar acquisition in Spain, it upgraded its investment goal by EUR 100 million to EUR 500 million-600 million.

(EUR 1.0 = USD 1.092)

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