Hera (HER) Q2 2024 earnings summary

Executive summary

• H1 2024 saw strong operating and financial growth, with EBITDA up 2% to €732.7–733 million and net profit up 16–16.4% to €218–237.3 million, despite a 32.7–33.3% revenue decline from lower energy prices and reduced incentives.

• The business plan remains on track, with momentum from Q1, robust Q2 execution, and all business areas contributing to structural growth.

• Net Zero 2050 target approved, with a 37% emissions reduction since 2019 and enhanced ESG initiatives.

• Investments increased, with gross operating investments up 8.2% to €344.4 million and net operating investments up 7% to €327.7–328 million.

• Financial structure remains solid, with net financial debt at €4.06 billion and net debt/EBITDA at 2.6–2.7x, reflecting strong flexibility.

Financial highlights

• Revenues: €5,536.8–5,785 million, down 32.7–33.3% year-over-year due to lower energy prices and trading.

• EBITDA: €732.7–733 million (+2% year-over-year); EBIT: €385–385.1 million (+2.8%); Net profit: €218–237.3 million (+14.1–16.4%).

• EPS at €0.152, down from €0.175 in H1 2023; dividend per share increased by 12% to €0.14.

• Operating cash flow for H1: €536 million, up €76 million (+17%) year-over-year.

• CapEx/gross operating investments: €328–344.4 million, up year-over-year.

Outlook and guidance

• Results are in line or ahead of business plan, supporting a positive outlook for H2 2024 and confirming Net Zero 2050 strategy.

• Net debt expected to remain stable around €4.1–4.15 billion by year-end, with financial flexibility from undrawn credit lines.

• Over 1 million new customers from the end of the protected electricity market in July 2024, with financial effects expected in H2.

• Energy efficiency business expected to normalize and grow from 2025 onward.