Energy company ERG plans higher dividend, 1.2 bln euros in investment in 2026 (updated)

Erg SA

15/05/2024 18:35

(Details in paragraph 4, 6-7, results in 9-10)
       May 15 (Reuters) - Italian energy company ERG  ERG.MI 
on Wednesday published a new 2024-2026 business plan, under
which it pledges to pay a dividend of up to 1.3 euros ($1.41)
and invest up to 1.2 billion euros.
    The group said it would define the dividend year by year,
but guarantees a minimum value of one euro, the amount included
in the previous plan.
    ERG, which is owned by Italy's Garrone family and generates
power mostly from wind and solar sources, will invest in
countries where the group already operates, with a focus on the
U.S.
    In December it entered the U.S. energy market with an
investment of around $270 million as it bought two wind and
solar assets of U.S. rival Apex Clean Energy.
    "Growth will be pursued through a strategy that we have
called 'Value over Volume', an extremely selective approach in
the choice of investments", Chief Executive Officer Paolo Luigi
Merli said.    
    The group now aims to reach an installed capacity of about
4.5 gigawatt in 2026 and up to 5 gigawatt in 2028, slightly
different from the previous plan, which forecast to reach 4.6
gigawatt in 2026 and around 5 gigawatt in 2027.
    More than half of the 1.2 gigawatt increase it expects to
obtain over the period, it said, is guaranteed by projects
finalised or under construction. 
    It expects core profits to reach 600 million euros to 650
million euros in 2026.
    The group also reported first quarter results, which are
broadly in line compared with the same period a year ago as
adjusted revenue was up 2% to 218 million euros and adjusted net
profit came in flat at 78 million euros.
    ERG confirmed the guidance for 2024, which includes core
profit between 520 million euros to 580 million euros and
capital expenditure between 550 million euros to 600 million
euros.
    
    
($1 = 0.9202 euros)

 (Reporting by Alberto Chiumento. Editing by Jane Merriman and
Josie Kao)
 ((Alberto.chiumento@thomsonreuters.com))