The BoD Approves Financial Statements as at 31/12/22, Corporate Governance Report, NFS, Update of the Business Plan and the ESG Plan 2022 -2026

Source Company Press Release
Company ERG S.p.A.
Tags Corporate: Corporate Results, Guidance, Country: Chile, Financial - Costs & Metrics: Capital Expenditures, Sustainability: ESG/CSR
Date March 15, 2023

The Board of Directors approves the draft financial statements as at 31.12. 2022
Business Plan and ESG Plan 2022 -2026 updated
Approved the report on corporate governance and the ownership structure and the consolidated non-financial statement
Proposed increase of the dividend to 1 euro per share

Year 2022
Consolidated EBITDA at adjusted values ​​1 : 537 million Euros, 399 million in 2021 adjusted  2 Adjusted net result from continuing operations: 216 million Euros, 127 million in 2021 adjusted 

Fourth quarter 2022
Consolidated adjusted EBITDA 126 million Euros, 145 million in 4th quarter 2021 adjusted Adjusted
Group net result: 43 million Euros, 60 million in 4th quarter 2021 adjusted

2022 Business Plan Update -26
RES portfolio growth of 2.2 GW confirmed to reach 4.6 GW in 2026 and 5 GW in 2027, investments of 3.5 billion euro and EBITDA in 2026 in excess of 650 million euro . Dividend of €1 per sustainable share over the period of the Plan

RES portfolio growing strongly from 2021 to date – The Group's installed capacity in wind and solar grew by 927 MW from the beginning of 2021 to today (+526 MW in 2022 ), confirming ERG's execution capacity, both in M&A, which contributed about 60%, and organic development with about 40%. The ERG group is now present in 9 European countries and has achieved a total installed wind and solar capacity of over 3 GW.

2022 results – EBITDA at 537 million euros, up 35% following the increase in installed capacity during the year by 526 MW, thanks to the consolidation of the 228 MW of new wind capacity that gradually entered service abroad and to of M&A in the period for 298 MW, as well as the full contribution of the plants that entered into operation or purchased in 2021. Net profit significantly increased in consideration of the better operating results and lower financial charges.

Extra profits and windfall taxes - The urgent and temporary measures to contain the effects deriving from price increases in the electricity sector in Italy and abroad, not included in EBITDA as special items  3  hadan overall impact for the Group in 2022 equal to approximately 91 million gross, of which approximately 63 million in Italy alone.

Increase in investments – In 2022 ERG invested 946 million euro, demonstrating the Group's strong commitment to growing the RES portfolio both in Italy and abroad. Investments were made for 25% in solar and the remainder in wind.

Guidance 2023 : EBITDAfor20232022(502 million net of clawback), investments are forecast in the range between 400 and 500 million. The financial structure is strengthened, with an expected net financial debt between 1,300 and 1,400 million (1,432 million at the end of2022), including the distribution of the ordinary dividend of 1 euro per share.

Update of the 2022-2026 ESG Plan – The sustainable strategy, increasingly at the center of the business model, has been rewarded through upgrades and recognitions of the main international ratings, where ERG is confirmed in the Top Tier . Approved the Consolidated Non-Financial Disclosure and published today the Executive Summary which summarizes our approach to sustainability. The ESG strategy is confirmedwith even more challenging objectives to continue the path towards a "Just Transition".

Update of the 2022-2026 Business Plan – In light of the changed context characterized by high prices and volatility, ERG's BoD approved an update of the plan targets to 2026, confirming the strategic guidelines of the 2022-2026 plan . 4.6 GW installed target in 2026 confirmed, expected to rise to around 5 GW in 2027. Expected EBITDA of over 650 million in 2026, 85-90% quasi-regulated. Investments in the period 2022-2026 at approximately 3.5 billion euros, of which 946 million euros already invested in 2022 .

Asset Rotation : asset rotation strategy confirmed to become a pure renewable player, through the relaunch of the sale of the thermoelectric business.

Financial strategy : Net financial debt expected in 2026 at 2.3 billion euros and maintenance of a solid and sustainable financial structure consistent with the Investment Grade rating and a NFP/Ebitda ratio of up to 4 times over the period of the plan.

Dividend Policy : annual dividend increased to 1 euro per share, sustainable over the period of the plan.

Genoa, 15 March 2023 – The Board of Directors of ERG SpA has approved the update of the 2022-2026 Business Plan and ESG Plan , the draft financial statements as at 31 December 2022 , the report on corporate governance and the ownership structure, the declaration consolidated non-financial report and the report on the remuneration policy and the fees paid.

Adjusted consolidated financial results

IV Quarter  Main economic data (millions of Euro)  Year 
2022  2021  Var. %    2022  2021  Var. % 
126  145  -13%  MOL  537  399  35% 
64  ninety two  -31%  Net operating result  308  198  56% 
43  60  -29%  Net income from continuing operations  216  127  71% 
  31.12.22  31.12.21  Variation 
Net financial debt from continuing operations (millions of Euro)  1,434  2.051  617 
Leverage  4  41%  57%   

Paolo Merli, Chief Executive Officer of ERG commented : “We are very satisfied with the performance achieved in 2022 , achieved in a context characterized by high price volatility, pressure on the supply chain and extraordinary regulatory measures. The Group has once again demonstrated its industrial and financial resilience with strong growth in operating results, driven by the greater installed capacity, and with a solid financial structure, despite the huge investments, ready to support future growth.
In this context of international crisis and extreme volatility ERG, with over 3 GW of RES capacity installed to date and a solid pipelinefor almost 4GW, between wind and solar, it is even more determined to play a leading role in the energy transition and in the fight against climate change. We confirm the goal of reaching 4.6 GW of installed capacity by 2026 with an expected EBITDA exceeding 650 million euros. Challenging but visible targets, with many projects in an advanced stage of development or under construction.”

The Board of Directors proposes to the Shareholders' Meeting, which will be convened for 26 April 2023 in first call and, if necessary, for 27 April 2023 in second call, the distribution of a dividend equal to 1 Euro per share which will be payable starting from 24 May 2023 (payment date), subject to detachment of the coupon starting from 22 May 2023 (ex date) and record date on 23 May 2023 . 

The Company has decided to make use of the faculty introduced by the Decree Law of 17 March 2020, n. 18, containing "Measures to strengthen the National Health Service and economic support for families, workers and businesses connected to the epidemiological emergency from COVID-19" (converted, with amendments, by Law 24 April 2020, n. 27 and as last extended by article 3, paragraph 10-undeces of Legislative Decree No. 198 of 29 December 2022 , converted with amendments by Law of 24 February 2023, n.14) providing that (i) the Shareholders may attend the Shareholders' Meeting exclusively through the Designated Representative; (ii) the administrative and control bodies of the Company as well as the Designated Representative can participate in the Shareholders' Meeting by means of telecommunications which guarantee the identification of the participants, their participation and the exercise of the right to vote, without in any case the need for the Chairman and the secretary taking the minutes are in the same place.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd