Italian energy company ERG SpA (BIT:ERG), which operates 1,768 MW of wind parks in Europe plus other power plants, last week reported improved group net result for both the second quarter (Q2) and first half of 2017.
For Q2 2017, the company posted a 59% year-on-year jump in group net profit to EUR 27 million, saying that the improvement is attributed to a decline in depreciation, lower net financial charges and increased revenues from the TotalErg investment.
Recurring earnings before interest, tax, depreciation and amortisation (EBITDA), though, went down 3% to EUR 107 million, with wind power contributing EUR 66 million. Recurring earnings before interest and tax (EBIT) decreased by 7% to EUR 43 million.
April-June 2017 revenues were EUR 236 million compared to EUR 235 million a year back.
For the first half of the year, ERG reported a 17% rise in the group net result to EUR 87 million. This includes inventory losses of EUR 3 million versus a gain of EUR 6 million in H1 2016. Recurring EBITDA declined by 6% to EUR 258 million, while EBIT dropped by 8% to EUR 133 million.
Revenues from ordinary operations in January-June 2017 increased to EUR 538 million from EUR 530 million a year back.
ERG confirmed its 2017 forecast for EBITDA of EUR 430 million and net debt of EUR 1.45 billion. This includes investments of EUR 140 million, primarily in wind projects abroad.