Italian oil company ERG has posted its consolidated results for Q1 2007. Earnings before interest, taxes, depreciation and amortization at replacement cost amounted to E113 million, up 55% compared with E73 million in the same period of 2006.
<p>ERG's group net income including gains and/or losses on inventory, net of taxes, saw a loss of E18 million for the period. This led to group net income of E3 million, down 89% on the first quarter of 2006<br /><br />However, ERG's group net income at replacement cost was E21 million in Q1 2007 compared to break-even in Q1 2006. ERG attributed the increase to a good result from its coastal refining division's plants. <br /><br />The company's CEO, Alessandro Garrone, said that the group expects its integrated downstream operations to see improved results looking forward due to the restyling of the company's service stations. This is proceeding in line with expectations and will be completed by the end of 2008. <br /><br />According to PetrolPlaza, Mr Garrone has also said that ERG is not looking to acquire any refineries but will instead focus on a renewables investment program in its power generation arm. The publication said that ERG is planning to invest over E2.5 billion in between 2007 and 2010, around 50% of which will be in renewables. <br /><br />Mr Garrone is also reported to have confirmed that ERG hopes to expand its share of the Italian petrol stations market from 7% to around 15% to 20%. When questioned about the company's designs on Libyan fuel retailer Tamoil, which has 8% of Italy's petrol stations, Mr Garrone reportedly said that ERG is looking into all opportunities.</p>