Despite the complex macro scenario, the Group’s quarterly report at 30 September 2022 shows an increase in Ebitda compared to 2021
Financial highlights
-
Ebitda* at 875 million euro (+2.4%)
-
Net result* at 248 million euro (-5.6%)
-
Net financial debt at 4,489 million euro, with net debt/Ebitda* at 3.62x
-
Investments increase sharply to 463 million euro (+22.8%)
Operating highlights
-
Contribution to growth coming from core businesses
-
Expansion in initiatives for the ecological transition and the circular economy
-
Commercial margins maintained in the energy area
-
Significant operating investments in networks, plus a significant effort in gas storage, as well as the completion of a number of M&As
-
Solid energy customer base, approximately 3.5 million
Today, the Hera Group’s Board of Directors, chaired by Tomaso Tommasi di Vignano, unanimously approved the consolidated quarterly report at 30 September 2022.
Although the results achieved in the first nine months of the year are part of a complicated scenario, characterised by ongoing volatility on the energy market, which became even more pronounced over the last three months, as well as the complex current economic and geopolitical conditions and the gradual increase in inflation in the country, these figures highlight the Group’s ability to offset adversity, continuing to pursue the goals set out in its business plan, with increasing sustainable investments aimed at generating positive effects for the communities and local areas served. Moreover, the Hera Group’s resilient business model, the management policies it implements and its financial solidity have continued to enable it to seize the strategic opportunities offered by the market, to guarantee a high quality and continuity in its services while at the same time supporting and confirming the commitments made to all its stakeholders.
Among the initiatives in support of stakeholders, note the flexibility shown towards the Group’s suppliers, who were able to revise their supply conditions based on inflation, and the significant gas storage initiative intended to support the customer base and the Italian gas system as a whole. As regards customers, thanks to the special attention to disadvantaged users, more favourable instalment terms than those provided for by law, an extension of the social bonus to include district heating, compliance with and maintenance of fixed-price contractual conditions, to date the performance in receipts for bills has been confirmed as essentially regular.
Revenues rise to roughly 14.3 billion euro
In the first nine months of 2022, revenues amounted to 14,320.1 million euro, up sharply (+122.9%) from the 6,424.3 million euro seen in the same period of the previous year. In particular, the energy segments showed significant growth mainly due to the increase in the price of energy commodities, which reached very high figures, especially in the third quarter of the year.
Ebitda* increases to 874.8 million euro
Ebitda* for the first nine months of the year amounted to 874.8 million euro, up 2.4% from the 854.4 million euro seen at 30 September 2021. The performance of the waste management area was particularly good, with Ebitda up 27.8 million euro, as was that of the water cycle area, up 7.3 million euro, fully offsetting the lower contributions coming from the energy area and the other services area.
Financial operations essentially stable and pre-tax profit* at 347.5 million euro
The result from financial operations for the first nine months of 2022 came to 89.5 million euro, basically stable compared to the 85.4 million seen during the first nine months of 2021. This change is mainly due to the increase in net financial debt generated by the trend in energy commodity prices compared to 2021.
Net result and at 248.4 million euro
With a tax rate of 28.5%, up from the same period in 2021 (26.2%) mainly due to the recognition of the non-recurring contribution against high utility bills (amounting to 2.3 million euro) and the recognition of lower benefits related to the tax credit on investments linked to the technological, digital and environmental transformation, the net result* and net profit* for the first nine months of 2022 amounted to 248.4 million euro. Net profit was largely stable compared to the 263 million seen at 30 September 2021.
Strong growth in investments and net financial debt sensitive to the higher value of stored gas
In the first nine months of 2022, the Hera Group’s operating investments, including capital grants, amounted to 463.3 million euro, up 22.8% compared to the 377.2 million euro seen in the same period of the previous year, with a major focus on resilience- and circularity-oriented projects, as set out in the business plan. The most significant interventions concerned plants, networks, and infrastructures, as well as regulatory upgrading focusing on gas distribution and the integrated water cycle, respectively involving a large-scale replacement of new-generation meters and specific interventions in the purification and sewerage areas.
| Income statement (mln €) |
Sept 22 | %Inc. | Sept 21 (redetermined) |
Inc.% | Abs. change | % change |
|---|---|---|---|---|---|---|
|
Revenues |
14,320.1 |
0.0% |
6,424.3 |
0.0% |
7,895.8 |
122.9% |
|
Other operating revenues |
345.3 |
2.4% |
243.6 |
3.8% |
101.7 |
41.8% |
|
Raw and other materials |
(11,642.5) |
(81.3)% |
(3,498.2) |
(54.5)% |
8,144.3 |
232.8% |
|
Service costs |
(1,693.9) |
(11.8)% |
(1,858.6) |
(28.9)% |
(164.7) |
(8.9)% |
|
Other operating expenses |
(56.6) |
(0.4)% |
(54.4) |
(0.8)% |
2.2 |
4.0% |
|
Personnel costs |
(449.8) |
(3.1)% |
(442.0) |
(6.9)% |
7.8 |
1.8% |
|
Capitalised costs |
52.2 |
0.4% |
39.7 |
0.6% |
12.5 |
31.5% |
|
Ebitda* |
874.8 |
6.1% |
854.4 |
13.3% |
20.4 |
2.4% |
|
Amortization, depreciation and provisions |
(437.8) |
(3.1)% |
(412.5) |
(6.4)% |
25.3 |
6.1% |
|
Ebit* |
437.0 |
3.1% |
441.9 |
6.9% |
(4.9) |
(1.1)% |
|
Financial operations |
(89.5) |
(0.6)% |
(85.4) |
(1.3)% |
4.1 |
4.8% |
|
Pre-tax result* |
347.5 |
2.4% |
356.5 |
5.5% |
(9.0) |
(2.5)% |
|
Taxes |
(99.1) |
(0.7)% |
(93.4) |
(1.5)% |
5.7 |
6.1% |
|
Net result* |
248.4 |
1.7% |
263.1 |
4.1% |
(14.7) |
(5.6)% |
|
Result from special items |
- |
0.0% |
56.2 |
0.9% |
(56.2) |
100.0% |
|
Net profit for the period* |
248.4 |
1.7% |
319.3 |
5.0% |
(70.9) |
(22.2)% |
| Invested capital and sources of financing (mln€) |
Sept 22 | %Inc. | Dec 21 (redetermined) |
%Inc. | Abs. change | % change |
|---|---|---|---|---|---|---|
|
Net non-current assets* |
7,485.3 |
+96.3% |
7,308.3 |
+109.4% |
177.0 |
+2.4% |
|
Net working capital* |
910.6 |
+11.7% |
2.4 |
+0.0% |
908.2 |
+37,841.7% |
|
(Provisions) |
(622.3) |
(8.0%) |
(633.4) |
(9.5%) |
11.1 |
+1.8% |
|
Net invested capital* |
7,773.6 |
+100.0% |
6,677.3 |
+100.0% |
1,096.3 |
+16.4% |
|
Equity* |
(3,284.4) |
+42.3% |
(3,416.0) |
+51.2% |
131.6 |
+3.9% |
|
Long-term borrowings |
(4,680.1) |
+60.2% |
(3,633.1) |
+54.4% |
(1,047.0) |
(28.8)% |
|
Net current financial debt |
190.9 |
(2.5%) |
371.8 |
(5.6%) |
(180.9) |
(48.7%) |
|
Net debt |
(4,489.2) |
+57.7% |
(3,261.3) |
+48.8% |
(1,227.9) |
(37.7)% |
|
Total sources of financing* |
(7,773.6) |
(100.0)% |
(6,677.3) |
+100.0% |
(1,096.3) |
(16.4)% |
*Adjusted results
For further information
Press release
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