In the second quarter of 2023, Hera gave fresh impetus to the growth already achieved in the first quarter, with first-half EBITDA showing an overall progress of 13.8%.

This result reflects the positive contribution of all business areas, while also having a significant sustainable connotation, given the continued development of the Decarbonisation activities.
In the first half of the year, the successful efforts to win new customers in the free market, the tenders awarded in the segments of last resort, STG and Consip, as well as the strong positioning in Decarbonisation services gave the Energy area a driving role in the Group’s growth. 

Hera opens 2023 with reassuring results from the first quarter, not just for the entity but also for the quality of the progress achieved.
All typical drivers contributed to the 9.4% increase in EBITDA: organic growth, mainly supported by the expansion of the customer base in the Energy areas and the strong competitive positioning in Waste, as well as activities that promote the circular economy and M&A.
Operating cash flow generation covered increasing capex and the disbursement for acquisitions, while the depletion of stored gas reserves contributed to the debt reduction of 472 million euro.

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%.

The Business Plan driving Hera to 2026 includes investments for 4.12 billion euro, 7% more than the cumulated amount envisaged for the 2021-2025 period.

Organic investments are mainly focused right there where Hera already enjoys a solid competitive position: in the Networks, where the Group has proven to be able to seize the advantages of the regulatory system, and in Waste, where a strengthened asset base will intercept the attractive dynamics of demand. Being ready for catching the new PNRR opportunities and the increasing value-added services demand, the Company has several and well-managed levers to translate the increased investments into healthy returns. Therefore, EBITDA is expected to increase by almost 250 million euro over the five-year period covered by the Plan.

The sharp increase in the price of energy commodities experienced in the third quarter of 2022 and the WACC cut made by the Regulator starting from January did not prevent Hera from achieving growth at the consolidated EBITDA level in the first nine months of 2022. 

A policy of well-balanced diversification of the businesses in the portfolio and careful management of the risk profile enabled Hera to achieve sound operating performance even in an unfavourable scenario. Therefore, Hera could keep executing its investment plan, while also seizing additional opportunities through the purchase of significant quantities of gas in storage that guarantee the security of supply to customers for the current thermal year at predefined conditions.

Half-year results confirm that Hera has a well-balanced asset portfolio and a clear long-term strategy. These elements allow the Group to navigate through a challenging scenario, such as the current one, without halting growth while confirming solidity.
Another evidence that emerges as Hera’s strength is the controlled risk profile in operational and financial management. On this basis it has been possible to absorb the impact of negative external elements, and, on this basis again, decisions have been taken to ensure the best possible conditions for future development, from higher investments to prudent provisioning.

The 3.3% progress achieved in the quarter at EBITDA level is evidence of Hera’s sound and visionary business-model approach, which was also able to leverage internal and external growth drivers, creating value and offsetting both the negative impacts of the macroeconomic scenario and the WACC cut set by the Regulator.

Despite the increase in net working capital due to the rise in energy prices and the pursuit of an intensive investment programme, Hera managed to maintain a solid financial structure, capable of supporting both customers in need, with bill payment in instalments, and the forthcoming distribution of dividend of 12-euro cent per share, confirming its growing shareholder remuneration policy.

In 2021, Hera achieved a 9% increase at EBITDA level, which exceeded expectations despite an external scenario still affected by COVID-19. A result that is also valuable from a qualitative point of view, given the wide range of organic factors that have fuelled the growth.

Thus, Hera has once again proven how crucial it is to have a multi-business portfolio to leverage, when one is an operator able to guess new trends in demand and promptly satisfy them. This is what happened, for instance, with the significant contribution that in 2021 energy efficiency and plastic recycling provided to Group’s 2021 EBITDA. The involvement in those businesses, moreover, confirms Hera’s active role in pursuing the environmental sustainability targets that Europe has set.

The results of the first nine months of 2021 show a significant growth in terms of EBITDA, around 9.6%. A growth that is significant also for its strong organic component.

Leveraging on a proactive approach in non-regulated business, today Hera can fully benefit from the recovery in volumes compared to the period of restrictions imposed by the pandemic while it is reaping the attractive returns from the energy efficiency solutions developed under the incentive system provided by the National Recovery and Resilience Plan.