Italy's ACEA sees annual EBITDA, net profit up 5% in 2024-28 business plan (updated)

Acea SpA

06/03/2024 07:27

(Adds CEO quote in paragraph 4, details and context throughout)
       March 6 (Reuters) - Italian utility operator ACEA
 ACE.MI  said on Wednesday that it expects earnings before
interest, taxes, depreciation and amortisation (EBITDA) and net
profit to grow by 5% each year on average, as it unveiled its
2024-2028 business plan.
    Under its "Green Diligent Growth" plan, the company
projected EBITDA of 1.80 billion euros ($1.95 billion) in 2028,
compared with 1.39 billion euros last year, mainly driven by
"organic growth and operating efficiency".
    It also expects net profit to reach 350 million euros in
2026 and 375 million in 2028, up from 294 million euros in 2023.
It plans to invest 7.6 billion euros during this period.
    "The strong discipline on costs and investments is a key
aspect of our strategy to support cash generation combined with
optimisation of our financial structure and capital allocation",
CEO Fabrizio Palermo said in a statement.
        ACEA said that the water sector is the driving force of
its development and the "focal point" of its strategy. 
  
        Management also flagged that the group's net financial
position-to-EBITDA ratio could decline to 3.1 times in 2028 from
3.5 times in 2023. 
  
        ACEA said it is targeting a 4% annual growth rate for
its dividend per share, which stood at 0.88 euros in 2023, with
a total return to shareholders of more than 1 billion euros
throughout the plan.
    In a separate statement, ACEA said it is targeting 3%-5%
EBITDA growth this year, coupled with investments totaling 1.5
billion euros.
    

($1 = 0.9212 euros)

 (Reporting by Alberto Chiumento; Editing by Varun H K and
Dhanya Ann Thoppil)
 ((Alberto.chiumento@thomsonreuters.com))