ERG lowers 2023 core profit guidance on poor wind conditions

Erg SA

28/07/2023 12:05

July 28 (Reuters) - Italian energy group ERG  ERG.MI 
lowered 2023 core profit guidance due to declining operating
results in the second quarter caused mainly by lower wind speeds
in a significantly declining price environment, it said on
Friday.
    It cut its core profit forecast to between 480 and 520
million euros  from a previous target of 500-550 million euros.
It also confirmed 2023 debt of between 1.4 and 1.5 billion
euros, it said in a statement.
    Shares in the company fell more than 5% after the lower
profit forecast was issued.
    "The operating results in the second quarter were lower than
our expectations mainly due to extraordinarily poor wind
conditions. Net profit has significantly increased, thanks to
lower financial expenses," ERG CEO Paolo Merli said.
    Net profit came in at 34 million euros ($37.4 million) in
the second quarter, up from 14 million euros of the previous
year.
($1 = 0.9098 euros)

 (Reporting by Alberto Chiumento)
 ((Alberto.Chiumento@thomsonreuters.com;))