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.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.