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

Milan, 29 November 2022 – The rating agency Fitch has affirmed today Italgas S.p.A long-term issuer default rating at ‘BBB+’, with Stable Outlook.

The rating affirmation is mainly based on the Company’s solid business profile, thus allowing Italgas to benefit from stable cash flows originating from regulated gas distribution activities in Italy and, to a lesser extent, in Greece as well as to mitigate the effect of higher energy prices and a rising interest rate and inflation environment.

The agency also focuses on the relevance of the Strategic Plan presented last June by the Company, which envisages 8.6 billion euros investments over the period 2022-2028, out of which 20% of the total will be earmarked for the upgrading and digitization of the Greek network, and a further 20% for participation in gas tenders planned from 2024 onwards.

Moreover, Fitch highlights that Italgas’ growing perspectives are further based on its solid operating performance realized as of Q3 2022, with EBITDA up to 4.9% year-on-year achieved through higher investments carried out in the regulated core business, energy efficiency business development as well as the first monthly contribution from DEPA that offset the negative effect of a lower WACC.

Italgas is awarded the management of the natural gas distribution service in the Atem area “La Spezia”

Investments of around 230 million euro are planned with a positive impact on the area and a significant effect on local GDP. Around 1,900 new jobs are expected to be created in the supply chain.

La Spezia, 29 November 2022 – The contracting authority Municipality of La Spezia officially awarded Italgas the tender for the management of natural gas distribution service in the “La Spezia” Area, which includes the main town and 32 municipalities in the province.

The awarding of the “Atem area”, which currently has about 110,000 customers served, allows Italgas to provide continuity of service management and actively contribute to the efficiency and decarbonization of consumption through investments of about 230 million euro.

The major investment plan will be able to produce a significant effect on local GDP with positive outcomes on employment as well, thanks to the creation of about 1,900 new jobs in the supply chain.

The extension of the service to new territories will also allow important savings in bills that can be quantified at about 218 million euros, over the 12 years of the concession, due to the lower cost of natural gas compared to other fuels used today. Economic advantages in addition to environmental benefits calculated in an overall reduction of atmospheric emissions of about 390,000 tons of CO2 and 6,000 tons of particulate matter.

Among the interventions envisaged in the Italgas plan are:

  • the laying of approximately 400 kilometers of new grids and the upgrading of about 40 kilometers of network to reach areas not yet served, in order to make natural gas available to around 9,000 new customers.
  • the complete modernization of 100 kilometers of networks, over 400 intermediate plants which will be equipped with monitoring and remote control systems.
  • the completion of the plan to replace traditional meters with latest generation meters, so that all customers in the Area will be equipped with them.

Pier Lorenzo Dell’Orco, CEO of the subsidiary Italgas Reti, commented: “The awarding of the Atem area La Spezia is an important result not only for the Company, whose tender offer was judged better than its competitors 2i Rete Gas and Ireti, but also for the territory, which will benefit from important investments for the building of the networks and energy of the future, starting from the first months of 2023: an even more extensive and widespread network able to bring natural gas in areas not yet served and to receive renewable gases such as biomethane and green hydrogen. After the Turin 1 and 2, Valle d’Aosta and Belluno Atem areas, this fifth tender awarded to Italgas raises to more than 1.1 billion euros the total value of planned investments in the territories concerned, confirming the strategic value of gas tenders for the development of the territories and for the important effect on the country’s GDP.”