Iren SpA (FRA:TZ8) Q2 2024 Earnings Call Highlights: Navigating Growth Amidst Market Challenges

In This Article:

  • EBITDA: EUR636 million, up 5% year on year.

  • Net Financial Debt: Increased by 2% compared to the end of 2023.

  • Investments: Almost EUR370 million in H1 2024.

  • Net Profit: EUR145 million, up 2% year on year.

  • Revenue from Networks: EBITDA increased by 26% due to regulated revenues.

  • Waste Business Unit: EBITDA decreased by 5% compared to the same period last year.

  • Energy Business Unit: EBITDA decreased by 30% due to lower electricity prices and reduced plant availability.

  • Customer Portfolio: Almost 2.2 million customers at the end of June 2024.

  • Group Net Profit Guidance for 2024: EUR260 million to EUR270 million, plus 4% compared to last year.

  • Investment Guidance for 2024: About EUR1 billion.

  • Net Debt to EBITDA Ratio: Expected to be 3.3x by year-end 2024.

Release Date: July 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Iren SpA (FRA:TZ8) reported a 5% growth in EBITDA for H1 2024, driven by regulatory adjustments and a strong commercial strategy.

  • The company successfully signed two green loans totaling EUR280 million to enhance the resilience of its electricity and water networks.

  • Iren SpA (FRA:TZ8) achieved a 4% reduction in carbon intensity, supported by increased hydroelectric production and decreased thermoelectric production.

  • The company recorded a 72% separate waste collection rate, with a 19% increase in material recovery at its waste treatment plants.

  • Iren SpA (FRA:TZ8) confirmed its 2024 guidance, expecting a 4% increase in EBITDA and a net profit range of EUR260 million to EUR270 million.

Negative Points

  • Net financial debt increased by 2% compared to the end of 2023, reaching EUR4 billion.

  • The waste business unit experienced a 5% decrease in EBITDA due to lower plant availability and planned maintenance.

  • The energy business unit saw a 30% reduction in EBITDA, impacted by lower electricity prices and reduced cogeneration plant margins.

  • There was a temporary unavailability of waste treatment plants, leading to reduced efficiency and increased startup costs.

  • The company faced a higher tax rate of 30.5% compared to 26.1% last year, affecting net profit growth.

Q & A Highlights

Q: Can you provide an update on the governance and the potential appointment of a new CEO? A: The governance is currently managed by the Executive Chairman and Deputy Chairman. The majority shareholders have the right to appoint a CEO if deemed appropriate. No decision has been made yet, so the governance remains unchanged. (Luca Dal Fabbro, Executive Chairperson)