Press release H1 2011 Hera Group
EBITDA recorded growth of Euro 30.5 million (+9.7%).
Published on: Mar 4, 2016
Transcripts - Press release H1 2011 Hera Group
press releaseBologna, 25 August 2011Hera’s Board of Directors approves the results for the firsthalf of 2011EBITDA recorded growth of Euro 30.5 million (+9.7%)Financial highlights • Revenues at Euro 1,983.2 million (+9.8%) • EBITDA at Euro 344.0 million (+9.7%) • Operating result at Euro 199.4 million (+14.1%) • Net profit after minorities at Euro 71.4 million (+14.1%)Operating highlights • Strong growth in electricity sales compared to the first half of 2010, with over 100,000 new customers • Optimised procurement of energy sources, partly attributable to flexibility of the contracts portfolio • Steady growth of regulated activities • Waste management area benefits from consolidation of the Enomondo joint venture and commissioning of the WTE plant in RiminiHera Group’s Board of Directors today unanimously approved the consolidated economic results forthe first six months of the year, which confirm good performance in all business areas.RevenuesGroup revenues at 30 June 2011 increased to Euro 1,983.2 million, up 9.8% on the Euro 1,807.0recorded in the same period in 2010.EBITDAEBITDA increased to Euro 344.0 million (+9.7% compared to the Euro 313.5 recorded in the first halfof 2010), thanks to the results achieved in all the business segments in which the Group operates.Growth was largely achieved due to the Group’s competitive edge in liberalised markets and to thesteady and continuous growth of the regulated sectors. In this context, the positive performance of theelectricity segment stands out, up to 12.3% from 10.1% in terms of its contribution to Group results.Operating result and net profitThe operating result stands at Euro 199.4 million (+14.1%), while pre-tax profit rose to Euro 145.9million (+21.5%). An increase in consolidated net profit was also recorded: Euro 83.2 million (+20.2%)after tax of approximately Euro 62.8 million (Group tax rate of 43%).After deduction of profits attributable to minority interests, the Parent Company recorded net profits ofEuro 71.4 million (+14.1%).Investments and net financial positionIn the first six months of 2011, the Group’s capital investments came to Euro 133.0 million, in line withthe forecasts of the business plan after the completion of the large plants.
The net financial position stands at Euro 1,971.1 million, in line with that recorded in the first sixmonths of the previous year.Financial management recorded a slight improvement compared to the same period in the previousyear.Waste managementFurther growth was recorded in the waste management area, a sector in which the Group retains itsposition as the main integrated domestic operator in terms of the volume of treated waste and thenumber of plants owned.EBITDA increased to Euro 105.2 million (+8.3%). The now fully operational new waste-to-energy plantin Rimini and the 50% consolidation of Enomondo S.r.l., the joint venture with Caviro for theprocessing of biomass, also contributed to the results.Volume trends saw a slight decrease of 1.1%. Municipal waste recorded a decrease of 2.9% (resultingprimarily from the negative financial climate), while industrial waste recorded an increase of 0.9%, as aresult of more intense sales activity.Renewable energy from waste, which increased from 270 GWh in the first half of 2010 to 357 GWh inthe first half of 2011, also contributed to the area’s results.The increase in renewable energy produced is in part due to an increase in the quantity of wastetreated with low environmental impact technology such as waste-to-energy and composting plants,with a consequent saving of landfills capacity.The result achieved in urban waste, which makes a contribution of more than Euro 7 million to thewaste management area, is particularly significant.Herambiente, an associated company of the Hera Group dedicated to waste treatment and disposal,has consolidated in the first half of the year its leading position thanks to the almost completedconstruction in Ravenna of a new plant for dehydration and pre-processing of special waste fromindustry and decontamination of polluted sites.Waste management business accounts for 30.6% of Group EBITDA.Water cycleEBITDA relating to the water cycle area remains stable at Euro 67.5 million, in line with volume trends.The constant focus on operating efficiency has allowed the Group to offset the decreased number ofnew customers and third party works resulting from the stagnation of the real estate industry.Water cycle business accounts for 19.6% of Group EBITDA.GasThe gas area recorded increased EBITDA of Euro 120.6 million (+10.3%). Favourable raw materialprocurement contracts and increased distribution revenues more than compensated for reduceddistribution volumes (1,351.7 million m³, -8.4%) caused by the milder winter compared to the previousyear. On the other hand, sales volumes saw a slight increase (1,688.5 million m³, +0.5%), attributablealso to the increase in quantities managed by the trading area.Gas business accounts for 35.1% of Group EBITDA.ElectricityThe electricity area maintained the excellent performance recorded in the previous quarters, withEBITDA of Euro 42.2 million (+32.9%). The result is attributable to the increase in sales volumes to4,815.0 Gw/h (+29.8%) and to the increase in the customer base to 453,000. This trend is the result ofthe positive performance of the sales area and the acquisition of the safeguard service (“salvaguardia”)in 6 Italian regions (Lombardy, Tuscany, Lazio and Abruzzo, Molise and Puglia) for the 2011-2013three-year period, compared to the 3 regions in the previous two-year period.Improved results were also recorded for distribution activities.
The electricity business accounts for 12.3% of Group EBITDA.Statement from Chairman Tommasi“Despite the ongoing uncertainty that also affects financial markets”, explains Hera Group Chairman,Tomaso Tommasi di Vignano, “the positive half-year results support our forecasts relating to thecontinuation of industrial development and confirm the quality of the measures taken. In addition, Iconsider the competitive edge that the Group is continuing to express on the liberalised markets to beparticularly significant”.Statement from CEO Chiarini“The results of the first half of 2011 record significant growth in all business areas compared to thesame period in the previous year, exceeding our expectations for the current year”, states MaurizioChiarini, Hera CEO. “Investment performance is in line with forecasts and remains at levels that areconsistent with the Group’s functional growth and with the maintenance of a net financial position inline with expectations”.Pursuant to Article 154-bis, section 2 of the Italian Consolidated Finance Act, the Group Director ofFinance Administration and Control, Luca Moroni, declares that the information contained in this pressrelease corresponds to the entries made in accounting documents, ledgers and records.The quarterly report on operations and related documents are available to the public at Borsa ItalianaS.p.A. and on the www.gruppohera.it website, from 25 August 2011.The accounting statements taken from the Interim Report on Operations as at 30 June 2011, notsubject to audit, are attached. Investor Relations Hera S.p.A. Jens K. Hansen tel. +39 051 28 77 37 e.mail: firstname.lastname@example.org website: www.gruppohera.it
Profit and Loss (m€) H1 2011 Inc.% H1 2010 Inc.% Ch. Ch.%Sales 1,983.2 100.0% 1,807.0 100.0% +176.2 +9.8%Other operating revenues 87.7 4.4% 101.8 5.6% (14.1) (13.9%)Raw materials (1,122.0) (56.6%) (1,036.4) (57.4%) +85.6 +8.3%Services costs (422.1) (21.3%) (405.6) (22.4%) +16.5 +4.1%Other operating expenses (17.5) (0.9%) (18.8) (1.0%) (1.3) (6.9%)Personnel costs (189.7) (9.6%) (184.6) (10.2%) +5.1 +2.8%Capitalisations 24.4 1.2% 50.3 2.8% (25.9) (51.5%)EBITDA 344.0 17.3% 313.5 17.4% +30.5 +9.7%Depreciation and provisions (144.6) (7.3%) (138.7) (7.7%) +5.9 +4.3%EBIT 199.4 10.1% 174.8 9.7% +24.6 +14.1%Financial inc./(exp.) (53.5) (2.7%) (54.8) (3.0%) (1.3) (2.4%)Pre tax Profit 145.9 7.4% 120.1 6.6% +25.8 +21.5%Tax (62.8) (3.2%) (50.9) (2.8%) +11.9 +23.4%Group Net Profit 83.2 4.2% 69.2 3.8% +14.0 +20.2%Attrib utab le to:Shareholders of the Parent Company 71.4 3.6% 62.6 3.5% +8.8 +14.1%Minority shareholders 11.8 0.6% 6.6 0.4% +5.2 +78.4%Balance Sheet (m€) H1 2011 Inc.% 31 Dec. 2010 Inc.% Ch. Ch.%Net fixed assets 4,207.6 110.2% 4,142.3 111.0% +65.2 +1.6%Working capital 1.3 0.0% (29.1) (0.8%) +30.4 (104.5%)Gross invested capital 4,208.9 110.3% 4,113.2 110.3% +95.7 +2.3%(Provisions) (391.8) (10.3%) (382.8) (10.3%) (9.0) +2.4%Net invested capital 3,817.1 100.0% 3,730.4 100.0% +86.7 +2.3%Net Equity 1,846.0 48.4% 1,870.2 50.1% (24.2) (1.3%)Long term net financial debts 2,279.7 59.7% 2,292.1 61.4% (12.4) (0.5%)Short term net financial debts (308.6) (8.1%) (431.9) (11.6%) +123.3 (28.5%)Net Financial Debts 1,971.1 51.6% 1,860.2 49.9% +110.9 +6.0%Net invested capital 3,817.1 100.0% 3,730.4 100.0% +86.7 +2.3%