News

Financial Highlights

• Revenues of € 4,189.1 million (-6%)
• EBITDA of € 867.8 million (+7.1%)
• Operating income of € 441.2 million (+10.4%)
• Adjusted net profit € 181.2 million (+24.7%)
• Net debt of € 2.640.4 million  
• Proposed dividend confirmed at 9 cents per share

 Operational Highlights

• Market share in special waste continues to grow despite the scenario
• Good performance of customer base in energy markets, which rose to 2.1 million (compared to about 1.9 million in 2013)   
• Operating performance, as well as financial income and tax benefits, more than offset the decline in revenues due to the mild winter and trends in energy prices

The Hera Group Board of Directors today unanimously approved the consolidated financial results as at 31 December 2013, together with the corresponding Sustainability Report.

Overall consolidated results

Despite a 6% decrease in revenues, due mainly to the mild winter and lower energy prices, the Hera Group’s results were better than in 2013, following improving performance quarter after quarter. The resilience of the balanced multi-utility portfolio, the focus on core activities, the constant market expansion and the extraction of synergies from merged operations were able to offset the negative impact of the winter weather, the mildest for the past 30 years. In addition, sector consolidation continued in Friuli Venezia Giulia, with the integration of Est Reti Elettriche. Isontina Reti Elettriche and Amga Udine, which contributed to the acceleration of results.

Waste management
The EBITDA of the waste management business, which includes waste collection, treatment and disposal services, stood at € 241.8 million (slightly up on the € 239.3 million for 2013). This figure was affected by the interruption of operations of two WTE plants (Bologna and Trieste) and the comparison with the previous year, which benefited from non-recurring income generated by the recognition of green certificates related to previous years. The business area’s results improved thanks to the increase in special waste volumes (+10.6%), as a consequence of the commercial effort and an increase in intermediation activities, due also to the creation of Herambiente Servizi Industriali in March 2014. The contribution of the waste management business to Group EBITDA was 27.9%.  

Water
The EBITDA of the water business, which includes mains water, purification and sewerage services, stood at 217.1 million (+12.2% compared to 2013). This business area rose on 2013, in terms of both contribution to Group EBITDA and in absolute terms. The contribution of the Integrated Water Cycle segment to Group EBITDA was 25%.

Gas
The EBITDA of the gas business, which includes methane gas distribution and sales services, district heating and heat management, increased to € 276 million (+3.9% on 2013). Despite lower trading volumes determined by changed market conditions and the substantial drop of natural gas and district heating volumes sales, as a result of the extraordinarily mild weather in 2014, EBITDA rose thanks to the inclusion in the scope of consolidation of business operations in Gorizia and Udine for € 20 million, the greater margins of energy efficiency certificates for €4 million and the operating efficiencies achieved in distributions. The contribution of the gas business to Group EBITDA was 31.8%.

Electricity
The EBITDA of the electricity business, whose services include the production, distribution and sale of electricity, stood at € 111.4 million (+27.6% on 2013). Positive effects include higher margins on selling activities, especially in the free market and in safeguard services, greater revenues from regulated services and the inclusion of business operations in Gorizia in the scope of consolidation. Capex in this area amounted to € 27.5 million, slightly up on the previous year.
 

“Despite the economic recession and the particularly mild winter of 2014, the results for the year just ended are in line with the business plan, showing even better figures, thus confirming the soundness of Hera’s multi-business model”, said Tomaso Tommasi di Vignano, Hera’s Executive Chairman. “Organic growth and positive results in all of the Group’s main business areas, on one side, and the integration activities, which allow for the extraction of synergies also from the newly-acquired companies in addition to AcegasAps, on the other, were paramount. With Amga Udine, in particular, we further expanded the number of Friuli Venezia Giulia companies included in the Group’s scope of consolidation. In 2014 EBITDA per employee exceeded €100,000, also considering the expanded scope of consolidation, even though the integration of three consolidated companies is still in the initial phase. Thus, we end our twelfth year in operation in a satisfactory manner, as we were able once again to overcome the effects of the persisting unfavourable economic conditions and to achieve as early as the first year a substantial part of the growth projected in the business plant to 2018, with results rising at every level of the income statement”.

“The positive results achieved received a significant boost from regulated activities but they also reflect the Hera Group’s ability to operate in liberalized markets, as shown by the constantly growing market share both in special waste volumes and in energy customers”, said Stefano Venier, Hera’s CEO. “Important effects are also being determined by the management of the debt structure over the past 18 months, especially the issue of the first Green Bond. This process created value for all of the Group’s stakeholders, as shown by all the main sustainability ratios: wealth distributed to the territory was close to €1.6 billion, capex rose for the third consecutive year and all the indicators concerning customers, employees and the environment improved.”