Italy's largest regional power utility, A2A, has revised its core and net profit forecast for the year upwards, buoyed by a 70% increase in first-quarter profit driven by growth in hydroelectric production.
The company now anticipates targeting earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of 2.08 billion to 2.12 billion euros ($2.29 billion), up from its previous projection of 2 billion to 2.02 billion euros. This adjustment reflects the expected strong performance of its Generation & Trading and Market Business units in the coming months.
Additionally, A2A has raised its net profit forecast to a range of 650 million to 670 million euros, compared to the earlier estimate of 570-590 million euros.
Chief Executive Renato Mazzoncini highlighted the significant milestone achieved in the first quarter, stating, “The company's hydro, wind and photovoltaic production in Q1 exceeded production from gas power plants for the first time in the history of the utility.”
During the January-March period, A2A reported a net profit of 294 million euros, with core earnings increasing by 40% year-on-year to 703 million euros.
The utility's optimistic outlook reflects its robust performance and strategic focus on renewable energy sources, positioning it for continued growth and profitability in the evolving energy landscape.
