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TI.A - Telecom Italia SpA News Story

$5.21 0.0  0.0%

Last Trade - 05/07/19

Large Cap
Market Cap £9.42bn
Enterprise Value £33.60bn
Revenue £13.43bn
Position in Universe th / 6938

UPDATE 1-Italy's ERG pledges 2.1 bln euros to become pure green

Fri 14th May, 2021 11:37am
(Recasts, adds detail, comments)
    MILAN, May 14 (Reuters) - Italy's ERG  ERG.MI  pledged on
Friday to spend 2.1 billion euros ($2.5 billion) over the next
five years to boost its wind and solar power business across
Europe and drive earnings. 
    Italy's biggest wind operator, which generates some 60% of
earnings from wind power, said it aimed to add 1.5 gigawatts
(GW) of capacity by 2025, boosting its solar business and
selling assets to become a purely green player.
    "Asset rotation of hydro and thermoelectric plants... would
be a chance to speed up further growth and evolution towards a
pure wind and solar model," CEO Paolo Luigi Merli said. 
    In March, sources said ERG had kicked off the sale of hydro-
and gas-fired plant assets worth more than 1 billion euros,
attracting interest from funds and utilities.*:nL8N2K04L3 
    The Genoa-based group, controlled by the Garrone family,
used to be one of Italy's leading oil refiners before selling
out to focus on renewable energy.
    ERG, which last year had total installed capacity of 3.1 GW,
said it would strengthen its presence in Italy and Europe,
expanding into countries, such as Spain and Sweden.
    To give earnings more visibility and make it easier to raise
debt, the group will make 80% of its business "quasi-regulated"
by taking part in capacity auctions and selling production to
corporate clients through power purchase agreements (PPA).
    Earlier on Friday, it said it had signed a PPA with phone
company Telecom Italia  TLIT.MI .*:nL8N2N11DV
    Core earnings will rise to 550 million euros in 2025 from
481 million euros last year, the company said, adding it planned
to maintain a steady dividend of 0.75 euros per share.
    "The capacity increase is in line with our expectations but
the 2025 core earnings target is a bit below," said one
Milan-based analyst.
    At 1012 GMT ERG shares were down 2.2% after earlier falling
as much as 9%.
($1 = 0.8258 euros)

 (Reporting by Rita Plantera and Stephen Jewkes; editing by
Barbara Lewis)
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