Italy’s De Nora upgrades 2022 guidance after core earnings jump

The De Nora logo is seen on a smartphone in this picture taken June 13, 2022. REUTERS/Dado Ruvic/Illustration

MILAN, Aug 4 (Reuters) – New Italian electrode maker Industrie De Nora ( DNR.MI ) on Thursday raised its guidance for this year’s profit and sales after adjusted core profit more than doubled in the first half.

Milan-based De Nora last month braved volatile markets amid fears over inflation and interest rates in a rare European stock market. read more Cornerstone investors including Italian gas network operator Snam ( SRG.MI ) and ERG ( ERG.MI ) owners the Garrone family backed the initial public offering (IPO).

The company said adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came to 102 million euros ($104 million) in the period, up from 45 million last year.

“The company expects to continue to grow in all business areas, pursuing the challenging new goals for 2022,” CEO Paolo Dellachà said in a statement.

De Nora guided for revenue of around €900m and adjusted EBITDA between €185m and €195m

It had previously forecast revenue of €830-880m and adjusted core earnings of €155-165m.

By 0740 GMT De Nora shares were up more than 5 percent at 14.49 euros. That compares to an IPO price of €13.50 per share, which valued the company at €2.72 billion. read more

The group said it is among six Italian companies selected to participate in the first major project of common European interest (IPCEI) on hydrogen approved by the European Commission.

De Nora’s electrode technologies business, which accounts for 55.5% of sales, posted revenues of €228m, up 57.4% in the period.

Sales in the wastewater treatment sector increased by 65.9% to €175.7 million, representing 42.8% of total sales.

A 130% increase was registered by the energy transition department in the first half, with revenues of 6.9 million euros.

($1 = 0.9845 euros)

Reporting by Francesca Landini and Francesco Zecchini, editing by Maria Pia Quaglia and Valentina Za

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