The first nine months of 2023 showed double-digit growth, moving from EBITDA to the P&L bottom line.
A set of clear features backs up the quality of the growth achieved over the period. Indeed, this was a cross-sectional growth, which involved operational, financial, and fiscal management, as well as all businesses across the multi-utility portfolio. Such growth can also be described as qualitative due to the high EBITDA component achieved in activities that contribute to the energy transition and circularity.
The Energy area goes on playing a driving role, in the wake of repeated and well-targeted achievements through commercial activities that often bring with them better margins. The outcome is that Hera can now leverage a solid base of 3.8 million customers.
In the first nine months of the current fiscal year, Hera achieved an EBITDA growth of 15.1%, despite a 22.3% decrease in Total Revenues, due to falling energy commodity prices.
Energy areas, which explain 112.4 m€ of the total EBITDA progress of 132.0 m€, recorded a significant increase (+43.8%), leveraging on a fast growth of the customer basis (+310 thousand) and a wide range of services provided, including those successfully addressing the Decarbonisation issue.
In the Waste area (+4.8%), where one of the two Waste-to-Energy plants in revamping has not returned into operation yet, Hera leveraged higher treated volumes and prices, as well as the broader scope gained with the acquisition of ACR Reggiani.
The last three months have seen an unfavourable scenario for equity investment: interest rates rising steadily, reaching 20-year peaks; the Chinese economy afflicted by persistent weakness; and, on 7 October, the outbreak of war in the Middle East, which exacerbated geopolitical tensions. The indices thus showed a volatile trend. The performance of Hera’s shares reflected this market sentiment: multiples have therefore not yet discounted the brokers’ upward revisions to estimates after half-year results.
As the end of the Central Banks’ aggressive cycle of interest rate rises approaches, the general market sentiment is starting to become less uncertain, especially looking ahead to 2024…
Water is the most important resource on Earth. An essential resource to avoid social, political, and economic crisis. However, due to Climate Change, it is destined to become increasingly scarce while its demand is increasing, driven by continued population growth, further industrialisation, and more intensive use in agriculture. Such a structural deficit of supply over demand creates investment opportunities that the national Regulators tend to promote.
In Italy, Hera boasts a strong position in the integrated water cycle, being the second largest operator and the first in terms of service quality. A status that the Group has built with 2.5 billion euro of investments over the last 20 years…