Italian renewable energy producer ERG SpA reported solid earnings for the third quarter of 2024, despite facing exceptionally poor wind conditions across Europe. The company's adjusted EBITDA for the quarter reached EUR 109 million (USD 114.8 million), a slight increase from EUR 105 million in Q3 2023. However, its adjusted net profit declined to EUR 25 million from EUR 24 million due to higher amortisation, depreciation costs, and increased financial expenses from the consolidation of new assets.
For the first nine months of 2024, ERG's adjusted EBITDA rose to EUR 390 million, compared to EUR 375 million in the same period in 2023. Adjusted net profit from continuing operations attributable to owners of the parent company stood at EUR 130 million, down from EUR 149 million last year.
ERG's organic growth strategy continued to progress, with the completion and energisation of the Bourgogne and Limousin I wind farms in France, adding over 41 MW of new capacity. In Germany, ERG secured 22 MW of wind power capacity in an auction and obtained authorisation for an additional 40 MW. The company also made strides in its repowering programme, finalising the construction of the Salemi-Castelvetrano wind farm in Italy, which now boasts an installed capacity of 76 MW, up from 26 MW.
CEO Paolo Merli commented, “Third-quarter results were affected by exceptionally low wind conditions across Europe and falling electricity prices in major markets. The Group's EBITDA recorded modest growth in this challenging environment, driven by new wind and solar capacity in Europe and the US.”
Due to the challenging wind conditions, ERG revised its full-year guidance, trimming the top end of its EBITDA forecast by EUR 20 million. The company now expects full-year EBITDA to range between EUR 520 million and EUR 560 million. Projections for capital expenditure and net debt remain unchanged, with expected capital expenditure between EUR 550 million and EUR 600 million, and net debt projected to be between EUR 1.75 billion and EUR 1.85 billion.
ERG continues to expand its renewable energy portfolio, consolidating over 500 MW of new assets in the first nine months. The company expects to reach an installed capacity target of approximately 3.9 GW by the end of the year.
