Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ERG SPA. We currently have 6 research reports from 1 professional analysts.
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Q4 15 and guidance 2016 in line
23 Mar 16
Q4 15 results in line with expectations and guidance: adjusted EBITDA at €86m (+8% yoy) and net profit at €20m (vs. €6m in Q4 14). Management proposes a dividend of €1 per share (o/w €0.5 is exceptional). Guidance 2016 confirmed (in line with the business plan): - EBITDA at c. €440m; - net financial debt at €1.7bn.
Q3 results; ongoing geographical diversification of ERG Renew
12 Nov 15
Guidance for EBITDA 2015 is confirmed at €350m. Net debt is confirmed at €600m (excluding the acquisition of E.on's Italian hydro assets and French and German wind farms). Q3 adjusted revenues were €216m (-16% yoy). Adjusted RC EBITDA was below expectations, at €66m (-17% yoy). By division: 1) Renewables: EBITDA was €45m (-13% yoy), affected by poor wind conditions in Italy (production in Italy -19% yoy, to 361GWH), somewhat offset by new capacity in France (57GWH vs. 18GWH in Q3 14) and Poland (25GWH vs. nil in Q3 14). 2) Power: EBITDA was €27m (-18% yoy), due to lower electricity prices in Sicily (Mucchetti amendment). Adjusted net income, at €19m (+32% yoy), beat expectations thanks to an improvement in the contribution from TotalERG (fuel marketing business). In October, ERG Renew agreed to buy 206MW (o/w 124MW in France, 82MW in Germany): - The acquisition encompasses two companies providing technical assistance on 800MW in France, Germany and Poland; - EV of €297m, equity of €128m. Wind farms financed with limited recourse project financing; - Expected EBITDA contribution: c. €30m in 2016.
ERG buys E.ON’s Italian hydroelectric portfolio
07 Aug 15
ERG has agreed to buy E.ON's Italian hydroelectric business for €0.95bn. Assets: 16 power plants, 7 dams, 3 reservoirs and a pumping station. The average annual output is c. 1.4TWh (1.8TWh in 2014). ERG will finance the deal with part of its cash and a €700m loan. The acquisition is still subject to anti-trust approval. Q2 15 results: adjusted revenues were at €222m (-11% yoy). Adjusted RC EBITDA came in at €86m (+15% yoy). By division (ex corporate): 1) Renewables: EBITDA was €62m (flattish yoy); 2) Power: EBITDA came in at €30m (+20% yoy). Adjusted EBIT at replacement cost was €46m (+35%), and the adjusted net result was €23m (vs. €10m in Q2 14). The adjusted net debt was at €477m (vs. €409m in Q2 14). Guidance on EBITDA 2015 is raised to €350m (from €330m), net debt at €600m (from €530m) without the impact of the E.ON transaction, capex at €230m (vs. €120m to account for the wind acquisition.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.