Nov 11, 2011 - Italian power group ERG SpA (BIT:ERG) surprised the market Friday, posting a net profit of EUR 8 million (USD 10.9m) in the third quarter of 2011 compared with a net loss of EUR 14 million for the third quarter of 2010, attributing the earnings to its renewables business.
ERG's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) surged 52% to EUR 120 million and adjusted operating profit soared 177% to EUR 61 million, ERG said in a statement.
For the nine months to September, ERG saw its net loss widen to EUR 32 million from EUR 13 million for the same period of 2010.
Adjusted EBITDA grew to EUR 229 million from EUR 213 million and adjusted operating profit dropped to EUR 53 million from EUR 56 million.
The company invested EUR 117 million between January and September compared with EUR 195 million for the corresponding period last year.
ERG's net debt rose to EUR 841 million at September 30, 2011 from EUR 723 million at end-2010, mostly due to the acquisition of ERG Eolica Campania and minorities in ERG Renew, and to payment of dividends, partially offset by the sale of 11% in the ISAB refinery.
ERG expects its renewables business to further grow for the rest of the year.
The company's stock had gained 1.51% to EUR 9.085 at 1338 CET on the Milan market on Friday.
(EUR 1 = USD 1.364)
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