Italian energy firm ERG sees 'huge' jump in 2024 core profit (updated)

ERG

14/11/2023 12:20

(Recasts with 2024 outlook, adds share move and details
throughout)
       Nov 14 (Reuters) - Italy's ERG  ERG.MI  sees a "huge"
increase in its core profit next year thanks to government
incentives, larger installed capacity and normalised wind
production, the energy group's CEO Paolo Merli said on Tuesday.
    Merli said in a post-earnings call it was possible to reach
a yearly increase of around 100 million euros ($107 million) in
2024 core earnings (EBITDA), based on "reasonable" expectations
of larger revenues from new installed capacity and a better
regulatory environment across Europe.
    ERG's net installed capacity increased by 369 megawatts (MW)
in 2023, including a 47 MW wind plant in Sicily expected to be
operational by the end of the year.
    The Milan-listed shares were up by 2.6% at 1138 GMT, after
the group also lifted its core profit forecast for this year.
    The company, which operates in the renewable energy sector
and generates power mostly from wind and solar sources, forecast
2023 adjusted EBITDA of between 490 million and 520 million
euros, compared with its prior range of 480-520 million.
    Its third-quarter adjusted EBITDA fell to 102 million euros
from 118 million a year earlier, weighed down by lower energy
prices, although this was partly offset by higher production,
the company said.
    It added the results had been impacted by regulatory
interventions to contain rising energy prices, such as clawback
measures and windfall taxes, through 2022 and 2023.
($1 = 0.9334 euros)

 (Reporting by Alessandro Parodi in Gdansk; Editing by Milla
Nissi)
 ((alessandro.parodi@thomsonreuters.com))