(Alliance News) - Acea Spa reported Friday that it ended the first nine months with net income down 19 percent to EUR209 million from EUR257 million in the same period a year earlier.

In contrast, the group's post-minorities recurring net income rose 3% to EUR208 million from EUR203 million a year earlier.

Revenues fell by 10 percent to EUR3.40 billion from EUR3.79 billion, and this was mainly attributable to lower revenues from electricity sales due to the sharp drop in prices on energy markets. Revenues related to the Water Italy, Networks & Smart Cities and Environment areas, at EUR1.80 billion, accounted for 53 percent of the total and increased by about 4 percent during the period.

Ebitda increased slightly to EUR1.01 billion from EUR1.00 billion, while the recurring figure rose 3 percent to EUR992 million from EUR964 million. The adjustment is mainly related to the recognition in the nine months of 2022 of the extraordinary contribution related to the technical quality premium in the Water area of about EUR26 million and the sale of CO2 allowances of EUR11 million.

As for the nine months of this year, the adjustment refers to the change in the scope of consolidation of EUR14 million.

Investments made in the first nine months amounted to EUR733 million from EUR700 million in the nine months of 2022 and increased by 5 percent due to more interventions in regulated businesses. More than 88 percent of the investments are allocated to the regulated businesses of Water Italy, regulated Networks & Smart Cities, and Environment.

The group's net debt increased by EUR403.4 million from EUR4.44 billion as of December 31, 2022 to EUR4.84 billion as of September 30, 2023. The change is mainly influenced by the dynamics of investments made, dividend payments, and the increase in the cost of debt. As of Sept. 30, the NFP/Ebitda LTM ratio was 3.7 times compared to 3.4 times as of Dec. 31, 2022 and the guidance for 2023 of minus 3.8 times.

For the full year, the board confirmed the guidance: Ebitda expected up between 2 percent and 4 percent over 2022; capital expenditures basically in line with last year; leverage less than 3.8 times.

In addition, the board appointed Francesca Menabuoni as a new board member.

Acea's stock is down 1.6 percent at EUR11.22 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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