Italian co ERG lifts 2016 profit by 11%

Wind turbine. Author: Luc Legay. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

March 16 (Renewables Now) - Italian energy company ERG SpA (BIT:ERG), which operates 1.72 GW of wind parks in Europe and other power plants, saw its 2016 net profit grow by 11% to EUR 107 million (USD 115.4m).

Apart from wind, the firm also has 480 MW of gas-fired capacity and some hydro assets. Last week it announced it has agreed to buy six wind farms in Germany, or 48.4 MW of capacity, for an equity value of EUR 14.4 million .

Details on its 2016 performance are available in the table.

(All in EUR million) 2016 2015 Q4 2016 Q4 2015
Group net result 107 96 24 20
EBIT 202 179 44 38
EBITDA 455 350 104 86

ERG’s results presentation shows earnings before interest, tax, depreciation and amortisation (EBITDA) grew thanks to good operating performance in wind, and improved thermal power generation contribution, among other factors. In 2017, however, it expects EBITDA to decline to EUR 430 million because of the expiry of wind farm incentives for about 200 MW of assets, and the change in regulatory and competitive scenario as regards the thermoelectric business in Sicily.

(EUR 1 = USD 1.08)

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Tsvet has been following the development of the global renewable energy industry for seven years now. She's got a soft spot for emerging markets.

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