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Financial Outlook 2019

Hera expects positive results to be recorded in 2019, in spite of the complex scenario seen in all the Group’s strategic areas:

  • Networks: the results should benefit from tariff increases due to the update of the return on invested capital, which was increased from the beginning of this year to take into account the dynamics highlighted by the country risk premium (spread) during 2018. A positive contribution is expected from the enhanced efficiency expected to be reached within the timeline included in the business plan.
  • Environment: The progressively rising trend in prices for special waste disposal is expected to give a positive contribution to results in this business area.
  • Energy: a lower contribution is expected from last resort markets, partially balanced by the commercial policies and by the expansion of the customer base. Power generation activities should produce a greater contribution than in 2018 due to the availability of all plants, some of which last year had been stopped for maintenance.

Net profits should benefit from a lower cost of debt, and a positive cash generation should be able to entirely cover the Group’s needs regarding dividend payments.

The main financial targets are shown below:

2019 Financial targets
Average cost of debt (%)̴ 3.5%
Tax rate (%)̴ 30.0%
Net Debt / Ebitda< 3x
Dividend (€c)10.5 €c

Page updated 19 August 2019

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