Italian renewables operator ERG has reported net profits of €107m in 2018, down 9% on €117m in 2017.
However, the company achieved €491m earnings before interest, tax, depreciation and amortisation (EBITDA) last year compared with €472m in 2017.
In the fourth quarter of 2018 ERG’s consolidated EBITDA at adjusted values was €109m, compared with €116m in the same quarter for 2017.
Adjusted net profit for the fourth quarter of last year was €15m, compared with €29m for the same period in 2017.
ERG chief executive Luca Bettonte (pictured) said: “2018 saw, in addition to the completion of the industrial transformation process of the group, a strong acceleration compared to the growth targets in renewables, thanks to the acquisition of 89MW of solar capacity in Italy and a 55MW increase in the company’s wind pipeline in France.
“An EBITDA of €491m is up both on the €472m in 2017 and on the estimate at the beginning of the year of €475m and in line with the revised upward guidance in June.”
ERG said it continues to implement its 2018-2022 business plan, which includes developing wind power projects in foreign markets and on repowering projects in Italy, having achieved its solar targets in advance due to the recent acquisition of an additional 51MW.
The group said that for 2019 it expects, ahead of it planned targets, to achieve a gross operating profit of between €495m and €515m and net debt of €1360m to €1440m, which includes investments between €340m and €370m.
According to ERG because the solar targets set out in its business plan have already been hit, the company has reached an agreement with UK-Italian renewables infrastructure investment house Quercus to suspend their joint venture fund ERG Q Solar 1.
However, both parties will continue to evaluate other opportunities together.
Quercus chief executive Diego Biasi said: “We have worked very well with the ERG team in 2018 and I am sure there will be other opportunities for collaboration in the future, perhaps in wind power or in Europe.”
Bettonte said: “Today the group’s priorities are repowering in Italy and organic development abroad both in the wind sector, important objectives that will absorb the financial resources envisaged in the plan.
“I thank Quercus for the demonstrated professionalism and we remain open to evaluate new opportunities in the future.”