ERG to hold fourth quarter and full year 2013 results
The conference call is scheduled for 15.00 Italian time (14.00 UK time) on Wednesday, March 12, 2014.
In 2013, adjusted revenues amounted to EUR 10,368 million, in decline from EUR 12,457 million in 2012, mostly as a result of the smaller quantities generated because of the planned general downtime and of the reduction in ERG's share of the ISAB Refinery, as well as of the
shut-down of the Raffineria di Roma by TotalErg.
The EBITDA at adjusted replacement cost3 amounted to EUR 569 million, up strongly compared with EUR 458 million in 2012. The change is a result of the following factors:
EBIT at adjusted replacement cost3 was EUR 278 million (EUR 216 million in 2012) after amortisation and depreciation of EUR 291 million (EUR 242 million in 2012).
Group EBIT at replacement cost amounted to EUR 38 million versus EUR 12 million in 2012. The improvement of the result is mainly linked to the growth in operating margins.
Group EBIT amounted to EUR 28 million (EUR 151 million in 2012) and mainly included the impacts of the previously commented sale of the final 20% equity investment in ISAB S.r.l. involving a capital gain of EUR 177 million, partly offset by the provisions tied to the activities
on the Priolo site and mainly consequent to the exit from the Refining business and by the ancillary charges related to the acquisition of ERG Wind. The result also reflects the write-down, by EUR 58 million, of the equity investment in TotalErg.
The results of 2012 were mainly affected by the capital gain deriving from the sale of a 20% equity investment in ISAB, net of the related tax effects, i.e. EUR 214 million, and by negative non-recurring items totalling EUR 72 million, relating to provisions for liabilities and writedowns
of assets of the TotalErg joint venture as a result of the closing of the Rome Refinery.
In 2013, adjusted Group capital expenditures totalled EUR 165 million (EUR 126 million in 2012), of which 59% in the Renewable Energy Sources segment (31%), 15% in Power & Gas (28%) and 25% in the Refining & Marketing segment (40%)4.
Net financial indebtedness amounted to EUR 807 million, up by EUR 294 million compared to 31 December 2012, mainly as a result of the acquisition of ERG Wind and of the payment of the dividends, effects that were partly offset by the collection relating to the sale of the
final 20% of ISAB, by the operating cash flow of the period and by time-limited events affecting working capital.
Net financial indebtedness includes financial liabilities related to the fair value of interest rate hedging derivatives, amounting to approximately EUR 141 million (EUR 76 million as at 31 December 2012).
Adjusted net financial indebtedness, which includes the portion attributable to ERG of the net financial position in the TotalErg and LUKERG Renew joint ventures, amounted to EUR 1,015 million, an increase of approximately EUR 293 million compared to 31 December 2012,
substantially for the same reasons explained above and because of time-limited events affecting working capital, for TotalErg as well.
Adjusted net financial indebtedness includes approximately EUR 147 million of financial liabilities relating to the fair value of derivatives hedging the interest rate risk (EUR 84 million at 31 December 2012).
(3) For the definition and reconciliation of results at adjusted replacement cost and details of non-recurring items, please refer to the section "Alternative performance indicators"
(4) Not including the capital expenditures in the ISAB refinery and the M&A in the renewable energies sector.
ERG S.p.A. - Genova
Head of Corporate Finance & Investor Relations
0039 010 2401376
ERG S.p.A. - Genova
0039 010 2401423