MNI BRIEF: BOJ Tankan: Business Inflation Expectations Solid

MNI BRIEF: RBA Details Hypothetical Monetary Policy Paths

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

ERG Results Broadly In-Line; Guidance Is Soft With Leverage To Rise

UTILITIES
  • Spreads muted in early trading
  • The Italian utility’s FY rev looks broadly in line at +4% YoY as does EBITDA of +2% YoY though equities may be unhappy with a 14% miss at the bottom line though the flat EUR 1 DPS was in line.
  • FY24 EBITDA guidance range implies flat to 11.5% growth (note BBG consensus FY24 figure implies +16% growth from FY23) while CapEx is seen rising from EUR 489mn this year to EUR 550-600mn.
  • Credit metrics look stable; their chosen leverage ratio of net financial debt from continuing ops to invested capital is flat at 40% (calculated vs. EBITDA we see lev falling from 2.86x to 2.78x at FY22) though FY CFO fell to EUR 501mn from EUR 548mn.
  • We do note that guidance implies an increase in net financial indebtedness from EUR 1.45bn to EUR 1.75-1.85bn on the back of the dividend payment - using midpoints this translates to EBITDA leverage of 3.3x (or 3.65x when excluding projected IFRS16 liabilities). For context, they have covenants requiring leverage remain below 4x.
Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.