German investor IVG has reported a third-quarter profit of €10.2m on the back of improvements in its caverns business.
The Bonn-based group’s result is an improvement on the same period last year, when losses amounted to €10.4m. IVG’s gas and oil storage caverns rose in value, up by €49m. However, overall revenue for IVG was down by 6% to €136m.
Leverage remains high, at between 85% and 90%. Analysts at JP Morgan said an equity injection of €650m would be needed to get IVG’s loan-to-value ratio down to 75%, or €2bn if it was to aim for 50% LTV. IVG says it has no major debt maturing until 2012.
