Italy's Acea posts 18% profit rise after cost cuts (updated)

Acea SpA

25/07/2024 13:21

(Adds CEO quote in paragraph 3, costs and guidance in 4-5,
background in 6)
       July 25 (Reuters) - Italian regional utility Acea
 ACE.MI  reported on Thursday an 18% rise in first-half
recurring net profit, as cost cuts outweighed a fall in revenue.
    The company, which operates mainly in the Rome region, said
its profits rose to 168 million euros ($182 million), helped by
growth in regulated businesses and better financial management.
    It cut costs to 1.3 billion euros in the first six months of
the year from 1.64 billion in the same period of 2023, without
giving details. 
    Revenue fell 13% to 1.99 billion euros, it said.
    "The financial structure remains solid and in line with the
targets communicated to the market," Chief Executive Officer
Fabrizio Palermo said in a statement.
    Acea confirmed its 2024 guidance, which includes core profit
growth around 3-5%, 1.5 billion euros of investments, and a
ratio of net debt to core profit of around 3.5 times.
    The group announced in March a new business plan in which it
said it would invest 7.6 billion euros to 2028 to expand its
activities in regulated sectors, including water, power grids
and waste management. 
    ($1 = 0.9217 euros)

 (Reporting by Alberto Chiumento; Editing by Jason Neely and
Mark Potter)
 ((Alberto.chiumento@thomsonreuters.com))