Debt and rating
The goal of the Group's financial operations is to maintain an adequate current and projected balance between investments and the use of capital on the one hand, and sources of financing on the other, in terms of both repayment plans and types of interest.
In order to maintain the low risk profile reached, Hera counts on improving the Group's financial structure, setting as a target in the plan to 2027 a Net debt/Ebitda ratio coming to 2.7x, an improvement compared to the previous Plan.
| Indexes | E2027 |
|---|---|
| Debt/Equity |
~ 1x |
| Debt/Ebitda |
~ 2.7x |
The increase in investments foreseen in the new Business Plan was made possible not only by the positive results reached in 2022, but also by Hera’s financial solidity, which leaves room to manoeuvre with additional unforeseen investments.
summary of Hera's financial profile
| MLN € | 2023* | 2022* | 2021* | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Average cost of money (%) | 2.9 | 2.6 | 2.8 | 3.0 | 3.5 | 3.7 | 3.6 |
| Short term fin. debt | 487.7 | 1,348.7 | 371.8 | 390.1 | 109.2 | (26.8) | 212.4 |
| Long term fin. debt | (4,315.4) | (5,598.5) | (3,633.1) | (3,617.1) | (3,383.4) | (2,588.8) | (2,735.4) |
| Net financial position | (3,827.7) | (4,249.8) | (3,261.3) | (3,227,0) | (3,274.2) | (2,585.6) | (2,523.0) |
| Total Net Equity* | 3,751.6 | 3,710.9 | 3,416.0 | 3,155.30 | 3,010.00 | 2,846.7 | 2,706.0 |
| Debt/Equity (x) | 1.02 | 1.15 | 0.95 | 1.02 | 1.09 | 0.91 | 0.93 |
| Ebitda | 1,494.7 | 1,295.0 | 1,219.4 | 1,123.0 | 1,085.1 | 1,031.1 | 984.6 |
| Debt/Ebitda (x) | 2.56 | 3.28 | 2.67 | 2.9 | 2.9 | 3.5 | 2.5 |
| FFO/Debt | 26% | 21% | 27% | 25% | 24% | 27% | 26% |
* Values net of operational adjustments
Download Hera financial profile track record
reached in 2023:
Hera’s rating better than the country’s
| INDEXES | HERA | A2A | ACEA | IREN |
|---|---|---|---|---|
| Net financial debt (mln€) | 3,827.7 | 4,683.0 | 4,846.8 | 3,931.8 |
| Debt/Equity (x) | 1.02 | 0.98 | 1.72 | 1.21 |
| Debt/Ebitda (x) | 2.56x | 2.38x | 3.48x | 3.30x |
| Long term rating | ||||
| Standard&Poor’s | BBB+/A-2 | BBB/A-2 | n.a. | BBB |
| Moody’s | Baa2 | Baa2 | Baa2 | n.a. |
Source: companies’ annual reports as at 31 December 2023 and communications to financial market.
Page updated 26 March 2024