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Significant growth in 1H 2023 results

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26/07/2023
Significant growth in 1H 2023 results

The consolidated half-year report at 30 June shows growth in all main operating-financial indicators, confirming Hera’s financial solidity and once again demonstrating the effectiveness of the choices made by management

Financial highlights

  • Ebitda at 718.3 million euro (+13.8%)
  • Net profit attributable to shareholders at 187.7 million euro (+2.4%)
  • Overall investments rise to 403.4 million euro (+22.4%)
  • Net debt at 4,145.7 million euro, down by 104.1 million euro compared to the 31/12/22 figure, with net debt/Ebitda ratio at 3x

Business highlights

  • Significant contribution to growth from the energy sectors, the waste management area and the water business
  • Ongoing growth in the energy customer base, which rose to over 3.7 million, up 7.9% in 12 months
  • Further development of initiatives for the energy transition and the circular economy, thanks to state-of-the-art plants and increasingly green services

The Board of Directors of the Hera Group, chaired by Cristian Fabbri, unanimously approved the consolidated results for the first half of 2023.
The first half of the year ended with operating results and investments up compared to the previous year, although in the first months of 2023 some of the served areas were affected by extreme weather phenomena and the uncertain global context continues to generate volatility in commodity prices, a generalised rise in inflation and an increase in the interest rates.
The consolidated half-year report at 30 June, indeed, shows positive operating and financial performances, demonstrating once again the Group’s financial solidity and strength of its business model, balanced between internal and external growth and between regulated and free market activities.

Cristian Fabbri, Executive Chairman of the Hera Group:



“The first half of 2023 closed with substantial growth in results, with Ebitda reaching 718.3 million euro, up 13.8%, mainly due to the overall contribution coming from the energy area, which also saw an increase in services for decarbonisation, while growth in the waste management area confirms our commitment to the circular economy. The results for this half-year see us moving rapidly towards achieving the goals set out in our Business Plan and are the fruit of our consolidated multi-business strategy, which has always been geared towards combining corporate growth with the sustainable development of the local ecosystem. This is additionally confirmed by the 22% rise in investments, both for developing the Group’s industrial assets and for M&As that focus on growth towards the ecological transition, innovation and resilience. Our business model is capable of continuously innovating while maintaining strong local roots, and has allowed us to once again respect the commitments made to our shareholders, to whom a dividend up by 4.2% was paid last month, consistent with what was announced during the presentation of the Business Plan to 2026.”

 

Orazio Iacono, CEO of the Hera Group:



“The consolidated half-year financial report at 30 June shows significant growth in Ebitda, with a contribution coming from all business areas, in particular the energy sector with 239 million euro (+30%) and the waste management area with 162.9 million euro (+8%), and increased investments and M&A transactions, amounting to over 400 million euro. All of this was made possible by a significant cash generation and a solid financial position. The financial structure was further reinforced during the first half of the year by sustainable sources of financing on favourable terms, including the issue of a sustainability-linked bond, a new revolving credit line and a recent EIB loan. These initiatives allowed us to maintain our net debt/Ebitda ratio at roughly 3x, in line with the previous half-year and the targets defined.”

 

Revenues at 8.3 billion

In the first half of 2023, revenues amounted to 8,297.5 million euro, as against 8,896.0 million euro at 30 June 2022, mainly due to the drop in energy commodity prices and lower volumes of gas sold, as a result of the mild weather in the first half of the year. Revenues related to the higher volumes of electricity sold, instead, were up, thanks to commercial development actions, Consip tenders and the lots awarded in the protected and gradual protection services, as well as higher revenues from energy services, in which opportunities related to energy efficiency incentives in residential buildings and increased activities in value-added services for customers remained. A positive contribution also came from revenues in the waste management sector, due to increased treatment activities and acquisitions in the industry market.

Ebitda rises to 718.3 million euro

Ebitda for the first half of 2023 rose to 718.3 million euro (+13.8%), compared to 631.2 million euro at 30 June 2022. This increase is mainly due to the overall contribution coming from the energy areas, amounting to 68.1 million euro, and the positive performance of the waste management area, up by 12.2 million euro.

Net operating result grows

The net operating result at 30 June 2023 rose to 374.7 million euro, up 11.9% compared to the 334.9 million euro seen one year earlier. This performance remained positive even after higher depreciation and amortisation, due to the significant increase in investments, and conservative provisions for bad debts, due to the increased turnover in last resort markets. Financial charges increased, mainly due to the medium- and long-term credit lines stipulated in 2022 and the significant change in the interest rate scenario, which saw a significant increase in the cost of money.

Net profit attributable to shareholders up to 187.7 million euro

Net profit rose to 208.0 million euro (+3.1%), compared to 201.7 million euro in the first half of 2022, with a tax rate coming to 26.8%. Net profit attributable to Group shareholders* totalled 187.7 million euro, up (+2.4%) from 183.3 million euro at 30 June 2022.

Strong growth in operating investments and Group solidity reinforced

In the first half of 2023, the Hera Group made investments and corporate acquisitions totalling 403.4 million euro (+22.4% compared to the same period in 2022). Operating investments, including capital grants, amounted to 318.4 million euro, up by 31.3 million euro compared to the previous year (+10.9%), and were mainly related to the development of plants, networks and infrastructures. In addition, regulatory upgrading mainly concerned gas distribution, with a large-scale meter replacement, and the purification and sewerage area.

Income statement
(mn€)
Jun-23 % inc. Jun-22 % inc. Abs. change % change

Revenues

8.297,5

 

8.896,03

 

-598,5

-6,7%

Other operating revenues

299,3

3,6%

219,4

2,5%

+79,9

+36,4%

Raw and other materials

(5.961,0)

-71,8%

(7.062,2)

-79,4%

-1.101,2

-15,6%

Service costs

(1.576,2)

-19,0%

(1.105,2)

-12,4%

+471,0

+42,6%

Other operating expenses

(41,5)

-0,5%

(39,3)

-0,4%

+2,2

+5,6%

Personnel costs

(330,4)

-4,0%

(308,7)

-3,5%

+21,7

+7,0%

Capitalised costs

30,6

0,4%

31,2

0,4%

-0,6

+1,9%

Ebitda *

718,3

8,7%

631,2

7,1%

+87,1

+13,8%

Amortization, depreciation and provisions

(343,6)

-4,1%

(296,3)

-3,3%

+47,3

+16,0%

Ebit *

374,7

4,5%

334,9

3,8%

+39,8

+11,9%

Financial operations

(90,5)

-1,1%

(50,9)

-0,6%

+39,6

+77,7%

Pre-tax result *

284,2

3,4%

284,0

3,2%

+0,2

+0,1%

Taxes

(76,2)

-0,9%

(82,3)

-0,9%

-6,1

-7,4%

Net result *

208,0

2,5%

201,7

2,3%

+6,3

+3,1%

Attributable to:

-

 

 

 

-

+

Shareholders of the Parent Company *

187,7

2,3%

193,3

2,1%

+4,4

+2,4%

Minority shareholders

20,3

0,2%

18,4

0,2%

+1,9

+10,3%

 

 

Invested capital and sources of financing (mn€) 30-giu-23 Inc.% 31-dic-22 Inc.% Var. Ass. Var.%

Net non-current assets*

7791,2

100,7%

7522,3

94,5%

268,9

3,6%

Net working capital*

612,2

7,9%

1096,0

13,8%

(483,8)

(44,1)%

(Provisions)

(668,1)

(8,6)%

(657,6)

(8,3)%

(10,5)

1,6%

Net invested capital*

7.773,6

100,0%

7960,7

100,0%

(225,4)

(2,8)%

Equity*

3589,6

46,4%

3710,9

46,6%

(121,3)

(3,3)%

Long-term borrowings

5067,5

65,5%

5598,5

70,3%

(531,0)

(9,5)%

Net current financial debt

(921,8)

(11,9)%

(1348,7)

(16,9)%

426,9

(31,7)%

Net debt

4145,7

53,6%

4249,8

53,4%

(104,1)

(2,4)%

Total sources of financing*

7735,3

100,0%

7960,7

100,0%

225,4

(2,8)%

 

* Adjusted results

 

 

For further information
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Search Results

13/07/2019

PSBO: open to the public Piazzale Kennedy

Piazzale_Kennedy_110 Piazzale Kennedy is now open to the public, the heart of the Piano di Salvaguardia della Balneazione (PSBO), created by Hera and the Municipality of Rimini together with Romagna Acque and Amir, one of the main hydraulic works of recent years in Italy, thanks to total investments for over 150 million euros, and reported by the UN for its importance in safeguarding marine environments. After months of incessant work on the building site, under the Construction Management of the Hera Group, the area was in fact returned to the city and the first of the two viewpoints was completed. The high lookout (the so-called "torrino") is still not accessible, although partially completed, which will remain fenced for safety reasons until the end of the summer period, also thanks to panels that show the citizens the most important phases of the intervention. Let us remember that Piazzale Kennedy is a project of great importance, not only from a plant engineering point of view, which the city of Rimini has undertaken. It is in fact the result of an important work of coherence between hydraulic works and urban planning and redevelopment guidelines. A synthesis of planning and architectural and landscape integration of the plant system in the city system. Piazzale Kennedy is one of the most important construction sites of the PSBO both in terms of impact and complexity: started in 2016, the shipyard sees today completed about 90% of the works. At the end of the summer season the works will resume in the remaining part of the area to reach the final phase of the redevelopment, the most visible and spectacular, with the opening of the lookout above the new hydraulic garrison. The underground part The new hydraulic facility provides an important accumulation infrastructure characterized by a total volume of almost 40,000 cubic meters, consisting of a first tank of 14,000 cubic meters of volume, which collects the first rainwater, and a second tank of 25,000 cubic meters with lamination and accumulation function. The first tank came into operation in mid-June, for the benefit of bathing in the Marina Centro area of Rimini. At the end of September, after the summer break, instead the works of the second larger tank will resume, which aims to limit, through a process of rolling the flood, the mixed flows that will eventually be conveyed to the sea. This tank is preparatory to the subsequent outflow lifting, with a pumping capacity of 18,000 liters per second, or to return to treatment at the Santa Giustina purifier. The large pool will come into operation once the sea pipelines have been completed, whose forecast for completion is scheduled for next autumn. In addition to the creation of new storage volumes and related lifting systems, particular attention was paid to the containment of odors. The project, in fact, provides a system based on forced ventilation that will convey the air drawn in from the tanks (both the first rain and the rolling one) to a treatment system that uses a specific activated carbon technology. Furthermore, the importance of the project must also be highlighted from the point of view of hydraulic protection: thanks to the work put in place it will in fact be possible to prevent flooding phenomena such as those already caused in the past by exceptional weather events. Finally, thanks to appropriate screening and storage treatments of the materials deriving from the excavations fielded by Hera, it was possible to recover over 20 thousand cubic meters of excellent quality sand, already used for the nourishment of the Rimini coasts. The operation is fully part of the initiatives aimed at protecting our beaches, because it helps to combat soil erosion, and as a good practice in a circular economy perspective. 20190713_PSBO_open_to_the_public_Piazzale_Kennedy.1564144575.pdf 2019-07-26 piazzale_kennedy_800_1.1563181364.jpg The viewpoint above the construction site, the heart of the Bathing Safeguard Plan, is now fully accessible Read more Piazzale_Kennedy_110
09/07/2019

HeraSolidale: with Butterfly Onlus our contribution has reached Africa

Pozzi_110 In Ethiopia, access to drinking water sources is extremely problematic. It is estimated that, on average, only 27% of the population has access to clean water. From all this derive diseases related to intestinal infections that tend to affect the weakest categories such as children, the elderly and women. This project is part of ongoing programs aimed at improving access to water supply for rural populations in the eastern area of the Tigray and Afar, regions in the extreme north of Ethiopia that live in a serious state of economic and social crisis. Here agriculture plays a predominant role employing 90% of the population. During 2018, for the Hera Solidarity project, thanks to the involvement and collaboration of workers, company and customers, we raised 145 thousand euros, of which 15 thousand for Butterfly Onlus. With this important amount, 3 wells were rehabilitated and then inaugurated. But let's not stop there: the goal for the year 2019 is to collect a useful amount to inaugurate another 4 wells, of which another 4,300 people will benefit. 2019-07-29 butterfly_foto1_800.1562838805.jpg Thanks to the donations of workers, company and customers, Butterfly Onlus has inaugurated three wells in Ethiopia that allow over 3 thousand people to drink clean water Pozzi_110
01/07/2019

10 candles: Herambiente celebrates its tenth anniversary with a gesture of solidarity

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When the children are not from Bologna, the AGEOP structures become "their home" and the high standards of hygiene and health with which they are conceived make them a safe and welcoming haven in which to face the therapeutic period without ever being left alone in front of the illness . consegna_chiavi_veicolo 20190702_Herambiente_sets_solidarity_in_motion.1564143740.pdf 2019-07-26 The Hera Group company celebrates its birthday by donating a van equipped for transporting children and their families to the Sant'Orsola Malpighi hospital at the AGEOP of Bologna sinistra Read more 10anni_HA_110
28/06/2019

The biggest Italian company dedicated to the management of industrial waste grows

Hasi-WR_110 As of 1 July, Waste Recycling, a subsidiary of Herambiente, is founded through a merger with Herambiente Servizi Industriali (Hasi), which then becomes the largest Italian company dedicated to the management of industrial waste, with registered office in Bologna and three commercial locations in Ravenna, Padua and Pisa. Hasi targets one million tonnes treated per year The objective of the merger is to simplify and further rationalise the overall structure of the company and make corporate coordination activities easier in order to achieve economies of scale with a general improvement in operating efficiency. The entry to Hasi of the three Tuscan multifunctional sites of Waste Recycling (two in Castelfranco di Sotto and one in Pisa, the former Teseco) will also enable an increase in the range of customers, allowing Hasi to transfer more types of waste to the same platform. In Italy, waste from production activities accounts for 80% of all waste produced. With respect to urban waste, industrial waste requires highly professional management systems and cutting edge treatment plants. Thanks to this merger, the volumes treated by Hasi have doubled, up from 550,000 to one million tonnes per year, mainly coming from the chemical-pharmaceutical, petrochemical, iron and steel sectors, and also the manufacturing and food sectors. The same goes for customers, which rose from 1,500 to 3,000, small and medium enterprises and also 250 large customers. The number of employees in the new company Hasi rose from around 40 initially to 200, while turnover reached Euro 140 million per year, compared to Euro 50 million previously. Serving companies Hasi was created in 2014 from an offshoot of Herambiente, the Hera Group company which is a national leader in waste management, with more than 6 million tonnes per year (including urban and special, hazardous and non-hazardous, originating from urban collection and industrial and productive activities). Thanks to the availability of roughly 90 certified Herambiente plants and a network of qualified suppliers throughout the country, Hasi is the Group company that offers services to companies that range from micro collection for small commercial activities to treatment and disposal of all types of waste for SMEs and large industrial groups. With a view to reducing costs and enhancing the circular economy performance of business customers, Hasi's offer has evolved over time, augmenting waste treatment and transport with a comprehensive series of related higher value services: the so-called Global Waste Management, customised solutions to support customers at each phase of management of their waste,always with a focus on recycling and recovery, as also indicated in the EU directives. The companies supported by Hasi with Global Waste Management services actually reach recovery shares of roughly 80%, thanks to efficiency plans proposed to reduce waste produced and an improvement in plant performances. In addition, the synergy with other Hera Group companies allows business customers to access additional services based on the circular economy, such as energy and water efficiency plans, that sit alongside those implemented by Hera regarding waste treatment. Hasi-WR_870 20190628_Nasce_la_pi_grande_realt_italiana_dedicata_alla_gestione_di_rifiuti_industriali_DEF.1563435725.pdf 2019-07-18 hasi_wr_870.1561725495.1563435724.jpg As of 1 July 2019, the Tuscan company Waste Recycling, with its three multifunctional areas in the province of Pisa, joins Herambiente Servizi Industriali (Hasi). Hence, the range of solutions for industrial waste treatment will be expanded. A million tonnes of waste that will be treated annually Read more Hasi-WR_110

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Hera SpA, Viale Carlo Berti Pichat 2/4, 40127 Bologna, Tel.051287111 www.gruppohera.it