Gas distributor Italgas reports 11% rise in first-half core profits

MILAN (Reuters) - Europe's biggest gas distributor Italgas said on Wednesday its first-half adjusted core earnings rose 11% year on year as positive regulatory effects more than compensate a drop in its energy efficiency business.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 671 million euros ($727.50 million) also supported by the consolidation into its first-half accounts of several recently acquired water service assets.

The group, which is in talks to buy smaller rival 2i Rete Gas, said its net debt was 6.73 billion euros at end-June, up from 6.56 billion at end-March.

($1 = 0.9223 euros)

(Reporting by Francesca Landini, editing by Alessandro Parodi)