Italian oil company ERG has booked net group profit at replacement cost of E19 million for the second quarter of 2007, compared to a net loss of E17 million in the same period of 2006. ERG also revealed that its earnings before interest and tax at replacement cost amounted to E53 million, as compared to a loss of E16 million posted in the same period of 2006.
In addition, ERG’s consolidated earnings before interest, taxes, depreciation and amortization at replacement cost in Q2 2007 was E98 million, compared with E22 million in Q2 2006.
In ERG’s integrated downstream unit, earnings before interest, taxes, depreciation and amortization (EBITDA) at replacement cost was E19 million, as compared with E31 million for the same period of 2006. The decrease was mainly due to lower results from the marketing activities, with a decrease in margins due to the notable and constant increases in international petroleum product prices during the quarter, the company said.
As regards the company’s inland refineries, there was a slight downturn in the results of the period, partly due to the reduced availability of ERG’s Rome refinery.
In power generation, EBITDA at replacement cost amounted to E26 million, compared with E27 million in Q2 2006. During the quarter, electricity generation at ISAB Energy was 638GWh, compared to 1,059GWh in Q1 2007. The decrease was mainly due to planned maintenance lasting approximately 40 days and a turbo generator breakdown in April.
Alessandro Garrone, CEO of ERG, commented: The overall results achieved by the group in the period are positive, but there is still room for improvement, which we will achieve in the second half of the year. Mr Garrone said that, due to the progress that the group is making in restyling its service stations, it expects to see an increase in sales volumes during the second half of 2007.