(Reuters) - Italy's ERG sees a "huge" increase in its core profit next year thanks to government incentives, larger installed capacity and normalised wind production, the energy group's CEO Paolo Merli said on Tuesday.
Merli said in a post-earnings call it was possible to reach a yearly increase of around 100 million euros ($107 million) in 2024 core earnings (EBITDA), based on "reasonable" expectations of larger revenues from new installed capacity and a better regulatory environment across Europe.
ERG's net installed capacity increased by 369 megawatts (MW) in 2023, including a 47 MW wind plant in Sicily expected to be operational by the end of the year.
The Milan-listed shares were up by 2.6% at 1138 GMT, after the group also lifted its core profit forecast for this year.
The company, which operates in the renewable energy sector and generates power mostly from wind and solar sources, forecast 2023 adjusted EBITDA of between 490 million and 520 million euros, compared with its prior range of 480-520 million.
Its third-quarter adjusted EBITDA fell to 102 million euros from 118 million a year earlier, weighed down by lower energy prices, although this was partly offset by higher production, the company said.
It added the results had been impacted by regulatory interventions to contain rising energy prices, such as clawback measures and windfall taxes, through 2022 and 2023.
($1 = 0.9334 euros)