November 15 (Renewables Now) - Italian energy company ERG SpA (BIT:ERG), which operates almost 2 GW of wind parks in Europe, saw its adjusted attributable net profit drop to EUR 7 million (USD 7.7m) in the third quarter of 2019 as revenues were dragged down by the unfavourable weather conditions.
The company closed the July-September quarter with revenues of EUR 231 million, down from EUR 250 million in the year-ago period due to the lower hydropower output and low winds in Italy. This decline was partly offset by the expansion of ERG’s wind fleet at home and abroad.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the three months climbed to EUR 107 million from EUR 105 million thanks to the improved results of all segments, but hydropower. The slight improvement, according to CEO Luca Bettonte, is a result of the expanded installed power generation capacity and the contribution of the thermoelectric business.
More details on ERG’s financial performance are available in the table.
|Amounts in EUR million||Q3 2019||Q3 2018||9mo 2019||9mo 2018|
|-- of which wind||43||40||214||199|
|-- of which solar||22||12||56||28|
|-- of which hydropower||20||38||64||118|
|-- of which thermoelectric||25||18||59||48|
|Adjusted net profit||7||17||75||92|
ERG added 190 MW of new capacity to its portfolio in the third quarter, of which 138 MW came from wind parks in France and Germany and 51 MW from solar parks in Italy. As a result, it had 1,929 MW of installed wind, 141 MW of solar and 527 MW of hydropower assets.
The company's wind power plants generated 692 million kWh of electricity in the third quarter, up from 578 million kWh a year back, while the solar output rose to 75 million kWh from 45 million kWh. Hydropower production, however, decreased to 274 million kWh from 401 million kWh.
ERG confirmed its 2019 forecast for EBITDA of between EUR 495 million and EUR 505 million. It expects total investments to stand at EUR 430 million-450 million, following buys in Germany, so net debt is now seen at between EUR 1.5 billion and EUR 1.56 billion, as compared to EUR 1.39 billion-1.47 billion projected previously.
(EUR 1.0 = USD 1.103)