Results at 30 June 2020: further growth of investments (+29%) and positive signs of resilience of business activities, even in an unfavourable scenario

04/08/2020

The results achieved in the first half of 2020 show Gross Operating Profit (EBITDA) of € 473 million, substantially in line with that of last year (-1%), thanks to stabilisation of the margins of the Market BU, organic growth of all the business activities and synergies that have made it possible for the company to cope with a particularly penalising energy and climate scenario, further worsened by the health crisis.

Main financial and economic indicators

  • Revenues totalling € 1,826 million (-18.4% compared to € 2,238 million at 30/06/2019). This decrease can be attributed to a particularly unfavourable energy and weather scenario. The drop in revenue was not reflected in margin losses.
  • Gross Operating Profit (EBITDA) of € 473 million (-1.0% compared to € 478 million at 30/06/2019). Excluding the net balance for approximately € 20 million of non-recurring items that had a positive influence in the first half of 2019 and the first half of 2020, the EBITDA would be up by 4%. The negative impact generated by the COVID-19 crisis was € 10 million.
  • Operating Profit (EBIT) of € 232 million (-10.0% compared to € 258 million at 30/06/2019).
  • Group Net Profit attributable to shareholders of € 133 million (-11.9% compared to € 151 million at 30/06/2019).
  • Net financial debt of € 2,919 million (+7.9% compared to € 2,706 million at 31/12/2019). The increase was due to the worsening of net working capital also caused by the delay in collecting receivables from customers due to COVID-19 (€ +50 million ) and to the sharp growth of investments (+29%).

Business highlights

  • Total organic growth of around 11 million Ebitda.
  • Synergies for € 5 million of EBITDA.
  • Investments of € 254 million (+29%). The increase was mainly connected with the repowering of the Turbigo plant.
  • Solid customer base in the energy sectors (approximately 1.863 million customers), up by over 47,000 compared to 31/12/2019.
 
In a particularly complex scenario, in the first six months of the year the Group was able to continue its growth through external lines by defining the acquisition of SEI Energia’s company branch, SI.DI.GAS, I.Blu, which will allow for further acceleration in the circular economy allowing Iren to become a leading operator in the selection of COREPLA plastic and in the treatment of plasmix and, finally, of Unieco Ambiente which will encourage entry into new territories and further strengthen Iren's industrial profile in the Environment sector and in the treatment of special waste. The significant growth in the customer base in the energy sectors testifies to the high level of service offered by Iren also in an extraordinary period in which the more than 8,000 employees of the Group, whom I thank warmly, continued to provide the services with the usual efficiency, professionalism and flexibility”, said the Iren Chairperson Renato Boero.
 
“The results achieved in these first six months of 2020 in a highly unfavourable context show the resilience of the Group’s business model and the strategic value of the integration of all the businesses.” - commented Massimiliano Bianco, the Group’s Chief Executive Officer who then added - “Once again the Group has shown the ability to pursue effectively the objectives of the Business Plan, increasing investments by 29% and confirming the recovery, by the end of the year, of the slight delays that have occurred on works under construction caused by the health crisis. The drop in profitability is mainly due to the absence of extraordinary items, the negative climate and the COVID-19 crisis, demonstrating that the ordinary management is solid and oriented to future growth. The investments made in recent years on people and technological innovation have allowed us to effectively counter and mitigate the impact of a particularly complex scenario. Strengthened by this awareness, we look forward to the second half of the year with optimism”.