Foresight in tackling the new scenario and confidence in the solidity of the business model: by leveraging these two strengths, Hera faced the challenges of fiscal year 2022, making progress in all financial KPIs.
The purchase of significant amounts of gas, to have adequate stocks available against the threatening energy crisis, was an intuition that has allowed the Group to keep its risk profile under control while continuing with the execution of the investment plan that underpins the continuous business growth.
The healthy results – achieved while maintaining a balanced leverage – make it possible to remunerate shareholders with a dividend of 12.5 euro cents per share, which represents a yield of about 5%.
Hera’s EBITDA growth path continued uninterrupted in 2022, with progress of 75.6 million euro that allowed the Group to reach a record level of 1,295 million euro, despite a much more challenging external scenario than was foreseeable at the beginning of the year.
The portfolio maintained a well-balanced structure, with the liberalised activities reaching 59% of the Group’s EBITDA.
All businesses performed well, as a result of continuous investments and wise management policies, although the extra-returns recognised in regulated activities were not able to fully offset the WACC cut of 22 million euro set by ARERA.
After the presentation of the Business Plan to 2026 on 8 February 2023, with today’s release of FY22 results, Hera does provide investors with additional confirmation of the founding elements of its equity story.
To some extent, analysts have already built in their valuations the features of Hera’s continued growth, achieved by carefully managing the risks of the external scenario. As of 20 March 2023 – before the 2022 annual results are known – brokers have a mean target price of 3.24 euro, over 30% above recent trading prices.
Hera has achieved uninterrupted growth since inception in 2002 to date.
Embracing from the very beginning an innovative multi-business and multi-stakeholder model has proved to be a winning choice. Over time, Hera has executed a clear growth strategy, based on two pillars: on one hand fuelling organic development through the deployment of significant technical investments and the expansion of market shares in liberalised businesses, and on the other hand expanding externally through targeted M&A operations, always effectively integrated.
Leveraging on such approach, consistently applied over time, Hera has achieved great results even in the most challenging scenarios, creating value for the benefit of all stakeholders.