The Hera Board of Directors approves the 2012 Q1 results
Revenues of €1,373.9 million (+21.9%) and EBITDA of €224.7 million in line with the good 2011 first quarter result
Published on: Mar 4, 2016
Transcripts - The Hera Board of Directors approves the 2012 Q1 results
Press ReleaseBologna, 15 May 2012The Hera Board of Directors approves the 2012 Q1 resultsRevenues of €1,373.9 million (+21.9%) and EBITDA of €224.7 million in line with thegood 2011 first quarter resultFinancial Highlights • Revenues of €1,373.9 million (+21.9%) • EBITDA of €224.7 million (+0.2%) • Net profit, after minorities, of €65.3 million (-2.3%; adjusted +0.1%) • Net financial position of €2,006.4 million, essentially unchanged compared to €1,987.1 million at the end of 2011Operational Highlights • Significant expansion in electricity sales, exceeding 500,000 customers • Reduction in volumes of waste treated due to the negative economic situation • Notable growth in the gas segment, thanks to higher margins and larger volumes • Significant contribution to the increase in EBITDA (€4 million) for regulated servicesToday, the Hera Group Board of Directors unanimously approved the consolidated financial results forthe first three months of the year. They were basically in line with the 2011 first quarter performance,which featured a particularly positive performance in an economic situation which was not as bad asthe one we are currently faced with.-----------------RevenuesGroup revenues as at 31 March 2012 rose to €1,373.9 million, an increase of 21.9% compared to€1,126.9 million in the same period of 2011, mainly due to higher earnings and gas distribution andsales volumes, a greater quantity of electricity sold and increased revenues from integrated waterservices, covering the services provided.EBITDAEBITDA stands at €224.7 million, slightly up (+0.2%) compared with first quarter of 2011, when Herashighest level of growth, since its establishment, was recorded for that period of the year (€40 million,equal to +21.4%). The first quarter 2012 result was impacted by the negative effects of about €5million related to the end of the CIP6 incentive of Bologna waste to energy plant and by the change infair value of hedging compared with 31 December 2011 by -€7.8 million (whereas in 2011 this changeresulted in a positive contribution).Operating profit and net profitOperating profit stood at €151.4 million (well in line with €151.3 million in 2011). Pre-tax profit totalled€120.3 million, slightly down (-2.3%) compared to the same period of 2011, mainly due to increasedfinancial charges, owing, in part, to a modest increase in medium-term debt and, in part, to anincrease in spreads.
Net profit for the period stood at €69.8 million (-6.3%), because of a 2.5% increase in the tax ratewhich reached 42%, caused by the increase in the Robin Hood Tax and IRAP (regional income tax)applied to utility suppliers. Having deducted minority interests, net profit after minorities came to €65.3million (-2.3%). Net of the effect of the CIP6 incentive, there would have been a positive variation inprofit after minorities of +0.1%.Investments and net financial positionIn the first three months of 2012 the Group’s gross investments came to €58.9 million, in line with whatwas anticipated in the Business Plan and in line with the same period of 2011. Of this amount, €20.3million (+10.3%) was related to the integrated water cycle. Investments in the Waste ManagementSegment, however, fell after the WTE plant at Rimini was completed.Net financial position stood at €2,006.4 million, basically stable (+1%) compared to €1,987.1 million at31 December 2011, in spite of the seasonal increase in net working capital.-----------------Waste Management segmentEBIDTA in the Waste Management Segment stood at €48.0 million, down 17.2% compared to thesame period of 2011. This drop, in spite of better urban sanitation results, was due, to a great extent,to the previously mentioned end of the CIP6 incentive at the Bologna waste to energy plant, whichcaused lower revenues from electricity production. Net of this impact, area EBITDA would have stoodat €53 million (-9.6%). This area was also affected by smaller volumes treated, both urban andindustrial, (-11.2% in total), correlated with the economic situation. The lower volumes were alsoaffected by the difficult weather conditions recorded in February, which slowed down waste collectionand treatment activities.The contribution of the Waste Management segment to Group EBITDA was 21.4%.Water Cycle segmentThe Integrated Water Cycle segment closed the quarter with EBITDA of €36.1 million, up by 8.1%.This was due to the greater volumes supplied (+3.4% mains water, +1.8% sewerage, +1.6%purification) and in spite of the increased electricity costs (more than €2 million) also resulting fromgreater system expenses.The contribution of the Integrated Water Cycle segment to Group EBITDA was 16.1%.Gas segmentThe Gas segment recorded notable growth with EBITDA rising to €114.4 million (+15.4%).This result was due to greater sales margins, increased revenues from distribution and greateramounts of heat supplied, where consumption in the district heating segment recorded a recovery.The incorporation of Sadori Gas (a gas sales company working in Marche and Abruzzo) in July 2011had a positive effect on results in this segment.The contribution of the Gas segment to Group EBITDA was 50.9%.Electricity segmentThe Electricity segment recorded EBITDA of €21.4 million, down by 25.1% compared to 2011, eventhough sales were excellent, exceeding 500,000 customers at the end of March. The decrease in theresult was due to the different performance of fair values for purchasing hedging contracts comparedwith the first quarter of 2011.There was also a reduction in consumption due to the economic situation, which had a negativeimpact on margins in this segment.
During the quarter, the Group also further increased its photovoltaic generation capacity, rising toabout 9 MW thanks to the acquisition of 4 MW.The contribution of the Electricity segment to Group EBITDA was 9.5%.-----------------Chairman Tomaso Tommasi di Vignano states:“Having matched the excellent results achieved in the same quarter of last year should be seen assomething incredibly positive”, explained Tomaso Tommasi Vignano, Hera Chairman. “In spite of theincreasingly difficult economic climate, the Group has in fact once again shown its commercialstrength and its capacity to operate efficiently in all of the services offered; this makes us confidentthat we will achieve our growth targets set in the 2015 Business Plan”.CEO Maurizio Chiarini states:“The Groups financial profile has proved to be absolutely solid and balanced, also in relation to othercomparable companies in the industry”, affirms Maurizio Chiarini, Hera CEO. “The substantial stabilityof the net financial position comes as a consequence of the careful policy of investment selection andrigorous management of working capital”.The Director assigned to the preparation of the Company accounting documents, Luca Moronideclares, pursuant to Article 154-bis, paragraph 2 of the Consolidated Finance Act, that theaccounting information contained in this document corresponds to the records available and to theaccounting ledgers and registers.The Consolidated Quarterly Report and the related documentation are available to the public at BorsaItaliana S.p.A. and on the website www.gruppohera.it, from 15 May 2012.The financial statements, extracted from the Consolidated Interim Report as at 31 March 2012, notsubject to audit, are attached. www.gruppohera.it 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 & Loss (mln €) 31/03/2012 Inc. % 31/03/2011 Inc. % Ch. Ch.%Sales 1,373.9 100.0% 1,126.9 100.0% +247.0 +21.9%Other operating revenues 40.9 3.0% 41.6 3.7% (0.7) (1.7%)Raw material (874.4) (63.6%) (656.0) (58.2%) +218.4 +33.3%Services costs (214.7) (15.6%) (198.4) (17.6%) +16.3 +8.2%Other operating expenses (8.9) (0.6%) (7.5) (0.7%) +1.4 +18.6%Personnel costs (96.9) (7.1%) (94.0) (8.3%) +2.9 +3.1%Capitalisations 4.9 0.4% 11.7 1.0% (6.8) (58.2%)Ebitda 224.7 16.4% 224.3 19.9% +0.4 +0.2%Depreciation and provisions (73.4) (5.3%) (73.0) (6.5%) +0.4 +0.5%Ebit 151.4 11.0% 151.3 13.4% +0.1 +0.1%Financial inc./(exp.) (31.0) (2.3%) (28.2) (2.5%) +2.8 +9.9%Pre tax profit 120.3 8.8% 123.1 10.9% (2.8) (2.3%)Tax (50.6) (3.7%) (48.6) (4.3%) +2.0 +4.1%Net profit 69.8 5.1% 74.5 6.6% (4.7) (6.3%)Attrib utab le to:Shareholders of the Parent Company 65.3 4.8% 66.8 5.9% (1.5) (2.3%)Minority shareholders 4.5 0.3% 7.7 0.7% (3.2) (42.0%)Net financial position (mln €) 31/03/2012 Inc. % 31/12/2011 Inc. % Ch. Ch.%Cash on hand 436.5 415.2 +21.3 +5.1%Other current loans 89.7 39.1 +50.6 +129.4%Current financial indebtedness (212.3) (118.3) +94.0 +79.5%Current net financial indebtedness 313.9 (15.6%) 336.0 (16.9%) (22.1) (6.6%)Non current loans 13.2 10.9 +2.3 +21.1%Non current financial indebtedness (2,333.5) (2,334.0) (0.5) (0.0%)Non current net financial indebtedness (2,320.3) 115.6% (2,323.1) 116.9% (2.8) (0.1%)Net financial indebtedness (2,006.4) 100.0% (1,987.1) 100.0% +19.3 +1.0%