Increased wind power production at Italian developer ERG’s projects helped mitigate the impact of Covid-19 on the company’s second quarter earnings, which fell 3% on the same period last year.
EBITDA was €107m in the second quarter of the year, compared with €110m in 2019, impacted by lower energy prices as a result of less demand caused by the pandemic.
However, net profit was up in the period by 21% to €16m from €14m, helped by lower financial charges and taxes than last year.
EBITDA from wind power was €57m in Q2 2020, up slightly on the €56m reported last year.
The increase was down to more favourable wind conditions in Italy and abroad.
Solar power contributed €22m to EBITDA, up from €21m in 2019. This was due to improved radiation from the sun, the company said.
Hydro power’s contribution to EBITDA fell to €16m from €21m as a result of a prolonged period of low water availability.
In the first half of the year, ERG said net profit was up 3% to €70m from €68m, while EBITDA fell 4% to €263m from €273m in 2019.
ERG chief executive Luca Bettonte said: “The quarter just ended is the one most severely penalised by the effects of Covid-19, with the collapse of electricity prices and demand throughout Europe.
“In view of the situation our results, which are in line with those recorded a year ago, can be considered decidedly positive.
“EBITDA for the period showed a slight downward trend and reflected the sharp reduction in the prices and margins of energy sales, as well as the low hydroelectric power output.”
He said guidance for the year forecasts EBITDA of between €480m and €500m.