Fitch Ratings (“Fitch”) affirms Italgas at ‘BBB+’, Stable Outlooks

Milan, 29 July 2021 – The rating agency Fitch has affirmed today Italgas S.p.A long-term
issuer default rating at ‘BBB+’, Stable outlook.

The rating affirmation is based on Italgas’ strong growth perspectives, well highlighted in its
Strategic Plan 2021-2027 presented to the financial community last June 15 th , 2021.

In particular, the agency emphasises the continuous increase in the Company’s investment
plan despite the pandemic emergency not yet fully overcome and the solid cash flow
generation. Moreover, the Group's commitment to the digital transformation, which will
enable Italgas to achieve significant benefits in terms of operating efficiency, together with its
attitude for strategic diversification towards water distribution sector and energy efficiency,
were once again positively acknowledged.

Fitch highlights as well Italgas’ proactive approach to debt management, whereby the
Company currently relies on a solid liquidity profile and faces no refinancing risk, also thanks
to the successful liability management transactions recently carried out.

 

PR_Italgas – Fitch affirms Italgas rating

Italgas and Salesforce: Strategic agreement for the development of a solution to digitally transform the Capital Deployment activity

Milan, July 29, 2021 – Italgas, Italy’s leading player in gas distribution and third in Europe, and Salesforce, global leader in Customer Relationship Management (CRM), signed a strategic agreement aimed at optimizing Italgas Capital Deployment through advanced digital solutions.

The agreement is part of a broader transformation journey launched in 2017 with over 2 billion Euros investment, which aims at enabling Italgas to become the world’s first utility with a fully digital network.

The agreement will see Bludigit, the Italgas Group’s IT new company, leverage the Salesforce platform to support capital deployment, create new ways of working and boost productivity across the Group, ensuring investments are effectively delivered on time and within budget. This includes:

  • optimizing each phase of capital deployment (from investment planning, to engineering design, permit requests to procurement, project execution to operations and maintenance), through the introduction of smart and flexible functionalities;
  • automating information exchange across the different design and execution phases;
  • providing end-to-end visibility across the entire investment deployment plan, to boost productivity and remove potential process bottlenecks.

 

“If I had to represent the digital transformation journey commented Italgas CEO Paolo Gallothe most faithful image would be like a continuous flow. It would be a paradox if we were to consider it a conclusive process because there are always new opportunities to simplify projects and daily operations and make them more efficient. The agreement with Salesforce will enable us to further improve the efficiency of our processes and give new boost to the achievement of the sustainability targets included in our Strategic Plan that will contribute to the energy transition and the net zero goals”.

 

“Salesforce is delighted to support Italgas on its digital transformation journey,” said Gavin Patterson, President and Chief Revenue Officer, Salesforce. “With the Salesforce Customer 360 platform, Italgas will be able to build a single source of truth across the entire capex cycle, breaking silos through effective data integration and visualization and creating a step change in process efficiency”.

 

Italgas and Salesforce: Strategic agreement for the development of a solution to digitally transform the Capital Deployment activity

Italgas: 2020 financial calendar

Milan, 29 January 2020 – Italgas announces the financial calendar and the dates of the publication of its 2020 financial results as approved by the Board of Directors:

Consolidated financial statement at December 31, 2019 and draft financial statements at December 31, 2019;
Dividend proposal for 2019;
Report on Corporate Governance and Ownership 2019;
Report on Remuneration 2020; Structure 2019; Sustainability Report 2019; PWC Resolution; Call of Shareholders’ Meeting.
Board of Directors approval

Press release and Conference call*

March 11, 2020

March 12, 2020

Financial statements at December 31, 2019;
Dividend approval for 2019,
Appoint BoD and Board of Statutory Auditors.
Shareholders’ Meeting

Press release***

April 20, 2020 in a single call
First quarter 2020 reportBoard of Directors approval Press release and Conference call**April 29, 2020
Strategic Plan 2020-2026Board of Directors approval

Press release and Strategy Presentation*

June 10, 2020

June 11, 2020

Second quarter 2020 results and interim financial report at June 30, 2020Board of Directors approval
Press release and Conference call**
July 27, 2020
Third quarter 2020 reportBoard of Directors approval Press release and Conference call***October 29, 2020

* Press release will be issued in the morning (non trading hours). The conference call for the presentation of results/Strategic Plan to the financial community in the afternoon on the same day;

** Press release will be issued at the end of BoD (trading hours) and Conference Call for the presentation of results will be held later on the same day.

*** Press release will be issued at the end of Shareholders’ meeting;

  • The dividend for the 2019 financial year will be paid on 20 May 2020 (record date 19 May 2020) with coupon payment date 18 May 2020.
  • A road show to present the company’s objectives as established in the 2020-2026 Strategic Plan to institutional investors and financial analysts is scheduled to start in June 2020.

Any amendment to the above calendar will be notified to the market in due time.

Italgas’ Board of Directors appoints the members of the Board Committees and their Chairmen

Milan, 14 May 2019 – Italgas’ Board of Directors, which met yesterday under the chairmanship of Alberto Dell’Acqua, in line with the Code of Corporate Governance, to which the company adheres, confirmed the institution of the following Committees and appointed their members:

Control and Risk and Transactions with Related Parties Committee

  • Paola Annamaria Petrone* (Chairman)
  • Giandomenico Magliano*
  • Silvia Stefini*

Appointments and Compensation Committee

  • Andrea Mascetti* (Chairman)
  • Maurizio Dainelli**
  • Silvia Stefini*

Sustainability Committee

  • Giandomenico Magliano* (Chairman)
  • Yunpeng He**
  • Veronica Vecchi*

The Board of Directors has declared that at least one member of the Control and Risks and Related-Party Transactions Committee and of the Appointments and Remuneration Committee meets the requirements of the Code of Corporate Governance.

* Non-executive and independent Director
** Non-executive Director

Italgas: Consolidated results as at 30 June 2020 approved

Milan, 27 July 2020 – Italgas’ Board of Directors, chaired by Alberto Dell’Acqua, met today and approved the consolidated results for the first half of 2020.

Key figures

Consolidated economic and financial highlights:

  • Total revenues: 646.8 million euros (+6.1%)
  • Gross operating margin (EBITDA): 462.7 million euros (+6.6%)
  • Net profit: 153.4 million euros (-7.7%)
  • Technical investments: 369.5 million euros (+16.3%)
  • Cash flow from operating activities: 388.8 million euros
  • Net financial debt: 4,625.8 million euros

Operating highlights including affiliates:

  • Municipalities in gas distribution concessions: 1,886
  • Number of active meters: 7.7 million
  • Gas distribution network: around 73,000 Km

The performance achieved by Italgas in the first half of 2020 demonstrates the company’s ability to continue generating solid economic-financial results thanks to digital efficiency and to the innovation projects deployed over the recent years, which made possible to mitigate the impacts of Resolution 570/2019/R/gas, relating to the tariff regulation of gas distribution and metering services for the period 2020-2025, to cushion the negative effects of the pandemic and to ensure the safety and continuity of the service during the lockdown period.

The 369.5 million euros invested over the period (up 16.3% compared to the first half of 2019) were devoted to the development and modernisation of the networks and digital transformation.

In the first half of 2020, around 486 km of new pipelines were laid, compared to around 379 km in the corresponding period of 2019. Construction of the distribution networks continued in Sardinia, with the laying of around 216 km of new networks, for a total of more than 680 km overt a total of about 1.100 km to build.

Despite the difficulties arising from the health emergency, the traditional meter replacement plan continued, with the installation of 0.6 million smart meters, also taking affiliates into account, bringing the total number of smart meters installed as at the end of the first half of 2020 to approximately 7.1 million. The plan, which is expected to be concluded in 2020, is part of the wider project for the digital transformation of the entire network operated. To date, this project has already upgraded the technology of over 400 distribution networks.

The financing requirements related to net investments for the first half of 2020 were fully covered by the positive cash flow from operating activities, equal to 388.8 million euros.

The net financial position as at 30 June 2020 was 4,625.8 million euros (4,410.6 million euros at 31 December 2019), net of financial liabilities pursuant to IFRS 16 of 75.5 million euros (74.7 million euros at 31 December 2019).

The EBITDA of the first half of 2020 amounted to 462.7 million euros (up 6.6% compared to 30 June 2019) and net profit was 153.4 million euros.

Paolo Gallo, CEO of Italgas, commented:

The performance in the first half of 2020 shows the capability of Italgas to react to exeptional situations – like the one we are currently experiencing due to Covid-19 – by continuing to produce solid results. Despite the adverse effects of the new tariff regulation in force from 1 January, we achieved an EBITDA of 462.7 million euros, up almost 7% compared to last year, and a Group net profit of 153.4 million, which was slightly down compared to the same period of 2019, due to to the heavy economic effects of the new regulation mitigated by all the actions implemented by the Company.

Our investments grew, amounting to around 370 million euros, most of which focused on digital transformation and continuous development and modernisation of the networks. Thanks to the digital transformation carried out over the last three years and to the great efforts of our people, we ensured safety and continuity of services throughout lockdown and we were able to get our worksites up and running again in early May. This restart was made possible by the proprietary technologies, developed and created in-house in our Digital Factory, such as “WorkOn Site”, an application that has made the process of verifying the compliance of worksites and works extremely efficient thanks to artificial intelligence and remote operation. 

After completing 65% of the 1,100 kilometres of networks of the methanisation plan in Sardinia, we are getting ready to make some of these networks operational, with immediate benefits for the economy and local population; overtime sustainable benefits, which however required a clear regulation of the entire gas supply chain and the implementation of the tariff equalization in line with the rest of Italy.

Regarding ATEM tenders, we hope for an important acceleration, to release new investments in our sector for over than 3 billion euro per year, essential for the restart of our Country. In the meantime, we are reaping the fruits of our work with the the further award of the Belluno Atem to Italgas and we we are getting ready to start in the coming months all the investments planned –  on this Atem and the other Atems assigned to us. 

Technological innovation, digitisation, efficiency, investments and a close relation with the community will characterize even more Italgas in the next months.  

Italgas: Consolidated results as at 30 June 2020 approved

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Italgas: the redevelopment of Parco Russoli is underway

Milan, 12 March 2019 – A new spring is approaching for the over 10,000 square meters of green area of the Franco Russoli park in via Carlo Bo. Thanks to a collaboration agreement signed with the Milan City Council, Italgas has started the redevelopment works that will affect the entire area between its Milan headquarters and the IULM university campus.

The project plans to renovate the existing structures (football pitches and bowling alleys, children’s play area), preserving the current overall layout of the park, but at the same time transforming the floors and furniture by introducing other areas of use available to citizens.

In the area there will be an outdoor fitness area, with equipment for physical activity and nine gymnastic stations for free-body exercises, as well as a space reserved for dogs. Particular care will be dedicated to greenery, with the introduction of new shrubby and herbaceous species that will contribute to enrich the vegetation, preferring evergreen and flowering plants with scaled flowering in the various seasons.

Other elements of the restyling include the enlargement of the aggregation area, with the insertion of a long pergola under which tables and benches will be placed, the improvement of the access and connection routes to the park and the renovation of the play area which will become fully accessible to disabled children.

“We would like to thank Italgas for having chosen to invest in the redevelopment of a park with great potential that has so far been under-exploited – says the Councillor for Urban Planning, Green and Agriculture Pierfrancesco Maran – . Russoli Park is the largest green area between Romolo and Famagosta and with this intervention will become much more attractive and liveable for residents and users of the neighborhood. The collaboration with Italgas is part of the “Cura e Adotta il Verde Pubblico” project, which allows more and more companies and companies to manage parks, flowerbeds, parterres, roundabouts and sports areas, consolidating the synergy between public and private in the care and growth of our city”.

“We are pleased to be able to collaborate with the City of Milan – is the comment of Italgas CEO Paolo Gallo – and to contribute to the development of the district that has been hosting our new headquarters for almost three years. The redevelopment of the Russoli park will make an area where hundreds of people pass through every day, including students, workers and residents, even more lively and enjoyable, offering new spaces and facilities that also stimulate physical activity and the promotion of a healthy lifestyle. With this initiative we want to contribute to creating value for the territories where we are present, pursuing corporate social responsibility and putting people at the centre of our commitment, whether they are our employees or the people who live near our offices”.

Completion of the redevelopment work and delivery of the new Russoli Park to the townspeople is expected by the summer. As part of the agreement, the Municipality and Italgas have also agreed that Italgas will be responsible for the ordinary management of the area and its facilities for a three-year period.

Sardinia: acquired from Conscoop the whole share capital of Isgas33

Milan, 13 July 2021 – Italgas today completed the acquisition of the whole share capital of Isgas33, the company holding the concession to manage the gas service in Basin 33 in Sardinia, from Conscoop, cooperative society based in Forlì.

The acquisition, announced on 28 January, was finalised following the fulfilment of the conditions set out in the sale and purchase agreement.

In particular, last January Isgas33 completed the conversion from propane air to natural gas of the distribution network in the municipalities of Quartu S. Elena, Monserrato, Quartucciu, Settimo S. Pietro and Sinnai.

More specifically, the company’s assets include:

– 242 km of network;

– Around 700 active PdR (redelivery points);

– 1 LNG plant with a capacity of 60 cubic metres.

The value of the transaction is EUR 25 million (enterprise value), equal to the estimated RAB for the company’s assets, adjusted for the value of the financial debt at closing.

With the completion of the transaction, the number of Basins in which Italgas is present in Sardinia through its subsidiary Medea has risen to 18 (out of 38). Furthermore, with the acquisition of this network, Italgas, through its subsidiary Medea, has: (i) approximately 1,400 km of networks for natural gas, two thirds of which are already in operation, (ii) about 250 km of LPG-fuelled networks whose conversion – in progress – will be completed by 2021 and (iii) approximately 600 km of propane-fuelled networks in the municipalities of Cagliari, Sassari, Nuoro and Oristano, which will be converted to natural gas. The end customers currently served are 50,000 with the aim of growing them to 150,000 over the next few years. All networks are and will be fully digitalised and equipped for the installation of fibre optics to serve local communities.

Bludigit announcement

Italgas announces the birth of Bludigit, the new company that brings together all the Information Technology activities of the Group. It will give a new boost to innovation and digital transformation.

The new organization, headed by Marco Barra Caracciolo, formerly CIO of Italgas, can rely on the skills of around 100 people and will allow both to increase the Group’s internal efficiency, making the digital transformation even more central, and to offer the market the new proprietary technological solutions.

Rome, 8 July 2021 – Bludigit S.p.A. is born, the new Italgas company in which all the Group’s Information Technology activities and the Digital Factory, the technological innovation hub created to develop digital solutions that enable business transformation, have been concentrated.

The new company, which can immediately rely on the skills of over one hundred people, controls assets worth around 100 million euros and more than 100 contracts for a total value of over 300 million euros.

Bludigit is the natural evolution of the digital transformation path started by Italgas in 2017 and will allow further rationalization of IT activities in terms of efficiency and internal cost control while developing new synergies inside and outside the Group in a service provider approach. Through the new company, the Group will offer cutting-edge proprietary digital solutions, making its in-house developed skills and applications available to other operators in the energy and infrastructure sector.

President and CEO of Bludigit is Marco Barra Caracciolo, formerly CIO of Italgas. With a degree in Electronic Engineering, 53 years old, Barra Caracciolo has a deep knowledge of the IT world, having held relevant positions in this sector.

Paolo Gallo, CEO of Italgas, affirmed: “Digital transformation is at the heart of our strategy, the main enabler of the growth path that will allow us also to support the energy transition to achieve the EU 2030 and 2050 targets. Four years ago, we started our digitalization process with a visionary choice, the adoption of the public cloud, and then we continued with a deep business transformation in the management of assets, processes, and people. And the evolution goes on. Today, with the birth of Bludigit, we aim to give a further boost to this path and to enhance the proprietary technologies developed in our Digital Factory by offering them also to operators from different sectors”.

Italgas: Changes to corporate events calendar

Milan, February 24, 2021 – Italgas announces that during today’s meeting, the Board of Directors, chaired by Alberto Dell’Acqua, resolved to modify the 2021 calendar of corporate events, moving the Shareholders’ Meeting, originally scheduled for April 14, 2021, to April 20, 2021.

Italgas specifies that the ex-dividend date, the record date and the dividend payment date, already communicated to the market on January 25, 2021, remain unchanged.

The calendar of corporate events is available at https://www.italgas.it/en/investors/financial-calendar/

Medea: in esercizio altri 140 km di rete

Sud Sardegna a tutto metano: Medea (Gruppo Italgas) mette in esercizio altri 140 chilometri di nuove reti native digitali in 7 comuni

Salgono a 410 i chilometri di nuove condotte attivate nella sola provincia Sud (570 in tutta l’isola), oltre alle reti oggetto di conversione. I lavori di attivazione hanno interessato anche Sestu (Cagliari), dove il Gruppo ha in programma la realizzazione di un impianto per la produzione di idrogeno verde da distribuire anche attraverso la rete cittadina.

Cagliari, 6 luglio 2021 – Il gas naturale è una realtà sempre più concreta e diffusa da nord a sud della Sardegna, a disposizione di un numero crescente di famiglie che beneficiano così di una fonte di energia più sostenibile, economica e sicura. Negli ultimi giorni, Medea (Gruppo Italgas) ha completato e messo in esercizio ulteriori 140 chilometri di nuove reti “native digitali”, concentrate nel Sud Sardegna nei bacini attigui a quello di Cagliari, anch’esso in concessione al Gruppo Italgas, oltre a quelle oggetto di conversione da GPL a gas naturale.

Si tratta nello specifico dell’infrastruttura al servizio dei comuni di Sestu e Monastir (bacino 37), Guasila, Samatzai e Samassi (27), Piscinas e Tratalias (35). Qui, come negli altri territori in concessione, Medea ha realizzato nuove reti di distribuzione dotate di sensoristica integrata per il controllo da remoto.

Nei 7 comuni, che contano complessivamente circa 36.500 abitanti, Medea ha già realizzato 5.498 predisposizioni per l’allacciamento e raccolto oltre 6.000 manifestazioni di interesse, la metà delle quali dalla sola città di Sestu.

In particolare, l’importanza della messa in esercizio della rete full digital di Sestu deriva dal fatto che sarà il principale network di distribuzione collegato all’impianto Power to Gas (P2G) che Italgas ha in programma di realizzare nel territorio comunale e che produrrà idrogeno verde. Un impianto che sarà la prima vetrina tecnologica della filiera di produzione dell’idrogeno verde in Italia e consentirà di testare i possibili utilizzi del gas rinnovabile nell’ambito dei contesti urbani: fornitura a industrie energivore del territorio, agli autobus per il trasporto pubblico locale, miscelazione con il gas naturale e distribuzione ai clienti allacciati alla rete.

“La Sardegna ha commentato Paolo Gallo, Amministratore Delegato Italgasè il nostro laboratorio green d’eccellenza al servizio della transizione energetica e dell’obiettivo Ue ‘net carbon zero’. Qui abbiamo posato, in meno di due anni, più di 900 chilometri di reti full digital, le più moderne del Paese. Insieme alla loro progressiva messa in esercizio, stiamo procedendo anche alla conversione a metano delle reti di 36 comuni nel nord dell’isola alimentate a gpl. Il futuro è già tracciato: le nostre reti native digitali distribuiranno non solo gas naturale, ma anche biometano, metano sintetico e idrogeno verde che produrremo direttamente nell’impianto Power to Gas di Sestu”.

Con gli ultimi comuni raggiunti dal gas naturale salgono a 570 i chilometri di nuove reti attivate da Medea sull’isola, 410 dei quali nel solo Sud Sardegna, oltre a quelle oggetto di conversione da GPL a gas naturale. Il primo metano è stato distribuito ad agosto 2020 nelle condotte di Alghero (bacino 6); a novembre dello stesso anno è stata la volta dell’intero bacino 19 nell’oristanese (comuni di Marrubiu, Mogoro, Palmas Arborea, Santa Giusta, San Nicolò D’Arcidano e Uras), quindi a febbraio 2021 i chilometri di reti attivate sono stati 150, nei comuni di Barrali (bacino 26), Sanluri e Serrenti (27), Masainas e Villaperuccio (35), Nuraminis e Villagreca, Ussana e San Sperate (37) tutti nel Sud Sardegna, Irgoli, Loculi e Onifai (15) nel nuorese.

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