Last price

Moody’s Investors Service (Moody’s) affirms Italgas at ‘Baa2’, Outlook changed to Negative from Stable

Milan, 9 August 2022 – The rating agency Moody’s has affirmed today Italgas S.p.A Long-Term Issuer rating at ‘Baa2’, revising the Outlook to Negative from Stable.

The rating action follows the outlook change to Negative from Stable on the Italian government’s Baa3 debt rating, carried out by Moody’s last 5 August 2022 and reflect Italgas exposure to the pressures that accompany a decline in sovereign credit quality, considering that its activities are essentially concentrated in Italy. However, as stated by the agency, the rating confirmation attests to Italgas’ strategic position and leadership in the gas distribution sector in Italy and its fully regulated profile.

Italgas Group strengthens its presence in Sardinia: 12 new municipalities acquired

The agreement signed with the company Fiamma 2000 includes assets for over 430 km of networks serving 12,000 customers; the concessions also include Olbia, which joins the other large towns on the island managed by Medea.

Milan, 3 August 2022 – Yesterday, Italgas signed a binding agreement for the acquisition from Fiamma 2000 Group of the LPG distribution and sales business, with related networks and plants, managed in 12 municipalities in Sardinia.

The distribution network covered by the agreement, currently operated by Sarda Reti Gas (Fiamma Group) extends over a total of more than 430 kilometers and serves 12,000 customers in the municipalities of Olbia (Basin 5), Valledoria (3), Buddusò (10), Budoni (11), Sedilo (13), Genoni (17), Terralba (19) Simala (20), Arbus (24), Mandas and Siurgus Donigala (26), Santadi (35).

The enterprise value of the transaction (on a debt-free/cash-free basis) is 31.7 million euros, with the price to be paid entirely by cash, net of the debt related to the perimeter acquired. The closing is expected to take place in the second half of 2022, subject to the occurrence of certain conditions precedent, including the acquisition of the consent of the granting bodies and the successful completion of the notification procedure pursuant to Law Decree 21/2012 and Prime Ministerial Decree 179/2020 (Golden Power).

The Italgas Group is thus extending its presence in most of the 38 basins into which the island is divided and is preparing to convert the acquired networks to natural gas, as part of the broader project to build cutting-edge gas infrastructure to serve the region.

Italgas CEO, Paolo Gallo, commented: “With this acquisition, we are taking another important step in the direction of the methanization of Sardinia: with Olbia, all the main towns in the region are managed by Medea. It has been a journey that, in few years, has allowed the island to close a historical gap, becoming a model capable of attracting other operators in the sector and reactivating an integrated energy system for the benefit of communities. The region, moreover, is in a leading position both because it is equipped with digital networks capable of receive renewable gases such as biomethane and hydrogen in the near future, and because the supply is ensured only by liquefied natural gas. We continue to work to make our service even more efficient, extensive and widespread’.

The Italgas Group has a total or partial presence in 24 of the 38 basins in which Sardinia is divided. Its assets consist of around 1,400 km of “native digital” networks for natural gas. In addition, there are 600 km of propane-air-fueled networks in the municipalities of Cagliari, Sassari, Nuoro and Oristano and the over 430 km of LPG-fueled networks included in today’s agreement, which will all be converted to natural gas in the coming years. Currently, 76 towns on the island are served by natural gas, for a total of 1.2 million cubic meters distributed in the first six months of 2022.

«Ideas 4 Italgas» Starting the third edition that introduces the permanent scouting formula: an ever-active ‘radar’ on open innovation

Milan, 28 July 2022 – Reducing the time to introduce new technologies through interaction with an ecosystem that ensures a continuous flow of knowledge to support the achievement of the digitization, operational efficiency and the sustainability targets set in the Italgas 2022-2028 Strategic Plan. With this aim Italgas, the leading operator in Italy and the third in Europe in the natural gas distribution sector, is strengthening its collaboration with SkipsoLabs, a company that provides advisory services and technology platforms for innovation at an international level, through a new initiative dedicated to open innovation.

The initiative is part of the ‘Ideas 4 Italgas’ program launched by the Company in 2020 and addresses the best Startups and Scaleups from around the world with the aim of enhancing research activities and strengthening the contribution of innovation to the improvement of the Group’s performance.

There are two main features of the project: the Co-Innovation Hub and the SkipsoLabs ecosystem platform. The Co-Innovation Hub (an international network of incubators, accelerators, start-ups and scale-ups) will allow Italgas to monitor the innovation ecosystem and activate an Outpost in Tel Aviv, a hybrid presence within the Innovation Hubs in Israel. This strategic approach will enable the company to validate evolutionary scenarios through the innovation and agility of start-ups, fostering and strengthening their growth in the market. The technology platform, on the other hand, will enable the creation and management of Italgas’ innovation ecosystem by bringing together internal and external innovation in a single digital space capable of fostering the involvement of start-ups, employees and suppliers in innovation and digital transformation programs.

Compared to previous editions, the new research will be an ever-active ‘radar’ on technological and business innovations in the following areas: digitalization (cloud, edge computing and IoT devices), analytics and data management, operation & maintenance, network monitoring, metering, sustainability and circular economy, biomethane, hydrogen and synthetic gases.

In the digital transformation process, open innovation has been one of the main drivers of strategic development since the beginning. An approach focused on identifying solutions that can foster growth and sustainable development in daily operations, for the partners involved and the entire gas distribution sector. In many cases, collaboration with start-ups and SMEs has created the conditions for introducing innovation in other areas as well.

This is what is happening with Composite Research (CoRe), the young Italian start-up active in the sector of innovative materials, which presented ‘MadFlex’ at the 2020 call, a technology to create an ultra-light multilayer material capable of repairing gas grids quickly, durably and resiliently. After passing many stress tests at the Italgas laboratory in Asti, “MadFlex” is now being examined by the CIG (Italian Gas Committee) in order to obtain the necessary certifications for large-scale use by all companies in the sector and in the water distribution sector.

This is not the only case. With I-Tes, the large-scale application of special batteries capable of storing heat produced by other sources and reusing it in processes for feeding gas into the network is underway; software from the American company Satelytics will enable the monitoring of networks to be enhanced through the use of satellite images as well; With the Swiss company Amex Sanivar, a study is underway into the possible application of a special film inside gas grids that can make them immediately hydrogen ready; finally, the application of the Norwegian company Tunable will improve the analysis of the composition of distributed gas blends.

Pier Lorenzo Dell’Orco, CEO of Italgas Reti, commented: “Open innovation is a strategic approach that allows companies to grow faster, increase efficiency and, above all, think differently. In the journey of digital transformation that Italgas Group has undertaken in recent years, we have made extensive use of it. It is thanks to continuous scouting activities that we met companies such as Picarro, of which we also became shareholders, and its CRDS technology, the most advanced in the field of gas network monitoring. And this is how we have progressively created an open ecosystem capable of supporting the implementation of the Group’s Strategic Plan and the growth of our partners, as well as the evolution of the entire gas distribution sector.”  

Carlo Soresina, co-founder and CEO of SkipsoLabs, added: “We are delighted to strengthen our partnership with Italgas through this innovation program dedicated to a key sector such as gas distribution. Today the ecosystem concept plays a central role in the innovation landscape. Our approach, which includes the involvement of the international network of the Co-Innovation Hub, the activation of a specific outpost in Tel Aviv and the technology platform, will facilitate the meeting of innovative start-ups from all over the world, connecting Italgas to a global innovation ecosystem. This is the right way to experience new evolutionary scenarios and to meet new market challenges”.

The project addresses international Startups and Scaleups (with focus on Europe and Israel) that develop products and services based on sustainable and original business models in line with Italgas’ strategy, and that will be able to offer solutions capable to meet the challenges posed by energy sustainability targets.

Interested startups will be able to register within the Italgas innovation ecosystem through the link https://ideas4italgas.italgas.it/en. The start-ups will be assessed by a committee of experts and, following a further selection process, will have the opportunity to work in close collaboration with the company to start the Co-design phase and define an experiment applicable to the sector.


Italgas

Italgas is the leading operator in Italy in gas distribution sector and the third in Europe. It manages a distribution network that extends a total of around 75,000 kilometers through which, during the last year, it distributed approximately 9 billion cubic meters of gas to 7.8 million users. The Group holds 1,899 concessions, with a historical presence in the country’s major cities including Turin, Venice, Florence, and Rome.

SkipsoLabs

Founded in 2008, SkipsoLabs is a company that provides software solutions and advisory services for innovation. Starting with the ambitious goal of creating a platform to support and accelerate sustainable innovation worldwide, over the years SkipsoLabs has become one of the leading international players in innovation management, offering cutting-edge programs to companies, universities, government agencies, accelerators and non-profit organizations worldwide. SkipsoLabs’ advisory services help clients identify the best innovation sourcing channels globally, define the right approach to validate and scale products and solutions both within their organization and in the marketplace. SkipsoLabs has an established framework to help identify strategic acquisition or partnership opportunities, to rank innovation and to engage internal management.

Medea (Italgas Group) becomes a 49% shareholder of Energie Rete Gas

Milan, 26 July 2022 – Medea S.p.A., an Italgas Group company 48.15% owned by the Marguerite II fund and active in the gas distribution in Sardinia, today signed an investment agreement with Energetica S.p.A. for the entry into the capital of Energie Rete Gas S.r.l., the gas transportation company of the Energetica Group with around 142 kilometers of regional methane pipelines.

Entering Energie Rete Gas’s share capital is the result of a mixed operation of transfer and sale of a business unit which includes the assets and activities managed by Medea in the gas transportation sector in Sardinia. These assets mainly consist of 63 cryogenic liquefied natural gas (LNG) tanks for a total capacity of 2,350 cubic meters and the related equipment serving the distribution networks managed in the Basins under concession.

The enterprise value attributed to the business unit transferred by Medea is equal to 53 million euros, against a 49% stake in the capital of Energie Rete Gas and a monetary consideration of 30 million euros.

The closing of the transaction will take place upon the occurrence of certain conditions precedent, including the successful completion of the notification procedure pursuant to Legislative Decree 21/2012 and Prime Ministerial Decree 179/2020 (Golden Power) and the finalization of the financing agreements with a pool of banks by Energie Rete Gas.

The transaction will further accelerate Sardinia’s methanization process and, at the same time, will also allow Medea to rationalize the plant equipment managed in Sardinia by separating, also at a corporate level, the natural gas transportation and distribution activities.

Italgas: consolidated results as at 30 june 2022 approved

Milan, 25 July 2022 – Italgas’ Board of Directors, chaired by Benedetta Navarra, met today and approved the consolidated results for the first half of 2022.

Key figures

Consolidated economic and financial highlights:

  • Total revenues: € 707.4 million (+6.3%)
  • Gross operating margin (EBITDA): € 513.3 million (+4.9%)
  • Operating profit (EBIT): € 296.0 million (+5.9%)
  • Adjusted net profit attributable to the Group: € 188.3 million (+6.9%)
  • Technical investments: € 374.4 million
  • Cash flow from operating activities: € 459.5 million
  • Net financial debt (excluding the effects pursuant to IFRS 16): € 5,033.4 million
  • Net financial debt: € 5,094.4 million

ESG – key indicators, Scope 1 and Scope 2 and energy consumption:

  • Net energy consumption: 301.5 TJ (-14.0%)
  • 54.7 10tCO2eq Scope 1 and 2 (-21.3%)
  • 47,667 km of network inspected (+35.4%)
  • Fugitive emissions/km investigated: 49.02 Sm3/km (-43.7%)

Operating highlights (including affiliates):

  • Municipalities in gas distribution concessions: 1,899
  • Number of active meters: 7.75 million
  • Gas distribution network: around 74,788 Km

The results of the Italgas Group for the first half of 2022 confirm the resilience of the business model, with a steady growth of all the main economic and financial indicators and the Group’s ability to match development with sustainability targets which were further revised upwards in the 2022-2028 Strategic Plan presented to the financial community on 15 June 2022.

An effort that confirms the Company’s commitment to providing an active contribution both to the energy transition process, whose urgency was increased by the targets set by the European Commission in REPowerEU, and to implementing the National Recovery and Resilience Plan.

In the period, € 374.4 million in investments were made, devoted primarily to the digital transformation of assets and processes, the natural gas distribution in Sardinia and the repurposing of the networks to enable them to distribute renewable gases (biomethane immediately and, in the medium term, hydrogen and synthetic methane).

In the first half of 2022, 230 km of new pipes were laid. In Sardinia, the creation of new fully digital networks continued, reaching a total length of 909 km out of a total to be developed of around 1,100 km. In addition, in the first half of 2022, 11 new GNL storage and regasification plants were commissioned, for a total of 64 plants serving the basins under concession.

The financing requirements related to net investments for the first half of 2022 were amply covered by the cash flow from operating activities, equal to € 459.5 million.

The net financial position as at 30 June 2022 was € 5,094.4 million (€ 4,980.0 million as at 31 December 2021). The net financial position amounted to € 5,033.4 million (€ 4,910.0 million as at 31 December 2021), net of financial liabilities pursuant to IFRS 16 of € 61.0 million (€ 70.0 million as at 31 December 2021).

The EBITDA for the first half of 2022 amounted to € 513.3 million (+4.9% compared to 30 June 2021) and adjusted net profit attributable to the Group was € 188.3 million (+6.9% compared to 30 June 2021).

In the context of the public tender called by the Greek government for privatisation of the gas distribution operator DEPA Infrastructure S.A, Italgas is waiting to finalize the acquisition of 100% of the Company.

Paolo Gallo, CEO of Italgas, commented: 

The results of the first half of 2022 provide additional confirmation of the soundness of a Group capable of continuing to grow without interruption, despite a scenario featuring increasingly complex economic-social and geopolitical conditions.

We have reached the first turning point of the year recording growth in all economic indicators: the EBITDA grows by 4.9%, surpassing € 513 million and the adjusted Net Profit at +6.9% came to approximately € 188 million. Investments, exceeding € 370 million, have been used to digitally transform the network, which is increasingly smart, widespread and flexible, serving the energy transition and the decarbonisation of consumption.

In Sardinia, we are continuing with our commitment to complete distribution of natural gas in the areas under concession. The smart network, which covers approximately 1,500 kilometres, is now the most cutting edge network in the country, both because it is already capable of accommodating renewable gases such as biomethane and hydrogen, and because procurement is guaranteed solely through liquefied natural gas.

Technological innovation is confirmed as the main driver that allowed us to anticipate this change, transform our operations and improve service in terms of quality and efficiency while, at the same time, achieving ever-increasing sustainability targets, significantly contributing to the achievement of the REPowerEU targets.

Italgas improves the rating assigned by Moody’s ESG Solution

Milan, 4 July 2022 – Italgas informs that the annual revision of the ESG rating Moody’s ESG Solutions (formerly known as Vigeo Eris rating), recognized the commitment of the Company with an “Advanced” rating, resulting from an overall improvement of 10 points compared to the result assigned last September. Progress mainly determined by the actions carried out and the further commitments undertaken by the Group in the environmental, social and governance fields.

The rating improvement is a further recognition of the Company’s strong focus on sustainability targets that the 2022-2028 Strategic Plan, recently presented to the market, has revised upwards (-34% in Scope 1 and 2 gas emissions, -30% in Scope 3 emissions, -27% in energy consumption by 2028, baseline 2020).

This recognition follows the confirmation of Italgas as a “constituent” of the MIB ESG Index, the blue-chip index for Environmental, Social and Governance (ESG) best practices of Borsa Italiana, part of the Euronext group.

Changes to Italgas’ calendar of corporate events

Press Release of the results at June 30, 2022

Milan, 15 June 2022 – Italgas announces that during yesterday’s meeting, the Board of Directors, chaired by Benedetta Navarra, resolved that issue of the press release concerning the approval of the result at June 30, 2022 has been rescheduled from 26 to 25 July 2022, following its approval by the Board of Director.

As a result, the conference call to present the results to institutional investors and financial analysts will be held on the afternoon of July 25.

Italgas presents its 2022-2028 Strategic Plan

8.6 billion euros investments to complete the digital transformation of assets, create one of the main national players in the energy efficiency sector, continue to play a leading role in achieving EU climate targets.

Turin, June 15th, 2022 – Italgas Chief Executive Officer, Paolo Gallo, is today presenting to analysts and investors the Strategic Plan of the Group for the 2022-2028 period, which was approved yesterday by the Company’s Board of Directors chaired by Benedetta Navarra.

The new Plan envisages an investment program of 8.6 billion euros, with an increase of 0.7 billion euros compared to the previous Plan presented last year. The increase in investments (+8.9%) is driven by the digital transformation of assets, the extension of the network and the initiatives aimed at consolidating in the energy efficiency sector that will enable the Italgas Group to continue to play a leading role in achieving the EU climate targets; in addition, the 2022-2028 Strategic Plan integrates the future commitment of Italgas in Greece with the awaited acquisition of Depa Infrastructure.

The strategic choices made in recent years by the Group have anticipated the approach of national and EU institutions towards the decarbonization and the containment of greenhouse emissions, which has materialized in the Fit for 55” and in the REPowerEU targets.

The new 2022-2028 Plan is structured along three main pillars: (i) continuation of the digital transformation, repurposing and network extension program to equip the country with cutting-edge infrastructures capable of receiving and distributing renewable gases such as biomethane and green hydrogen; (ii) consolidation in the energy efficiency sector with the aim of placing Italgas among the main operators in the sector; (iii) new growth opportunities through ATEM tenders and M&A in the gas and water sectors, and development of the Greek market. In pursuit of these goals, Italgas will further develop the skills of its people – also through insourcing and an internal Academy – and it will use a solid and efficient financial structure ensuring an appropriate return for shareholders.

The Plan pivots on ESG factors and responds to the challenges of sustainability by setting objectives for 2028 and 2030, in line with the carbon neutrality target for 2050, and further raising those defined last year in terms of emissions reduction, energy efficiency, competences, and people development to make the change effective.

In Greece, the Italgas Group expects to be able to complete the acquisition of DEPA Infrastructure over the next few months and to integrate and make the investment plans, currently prepared by the operators involved in the transaction, consistent with its vision.

Highlights 

  • Total net investments Plan of 8.6 billion euros (+700 million euros compared to previous Plan);
  • 4.5 billion euros net for the development, digitization and repurposing of the Italian gas distribution network;
  • 1.8 billion euros for Atem tenders and 1.8 billion euros for Greece;
  • 340 million euros to accelerate growth in the energy efficiency sector;
  • Reduction of greenhouse gas emissions Scope 1 and 2 by 34% by 2028 and by 42% by 2030, Scope 3 (supply chain) by 30% by 2028 and by 33% by 2030, decrease in energy consumption by 27% by 2028 and by 33% by 2030 (baseline 2020);
  • “Net Zero goal” by 2050;
  • Strong attention to generational change, the engagement of the Group’s people as protagonists of the ecological transition and focus on training: the 3 levers that enable change;
  • Optimization of the financial structure, with maintenance of the ratios in the solid investment grade area;

Paolo Gallo, CEO of Italgas, commented:

In a European scenario that has REPowerEU as the new North Star to strengthen the resilience of the energy system and accelerate the ecological transition, Italgas can reap the benefits of a vision that had identified digital, flexible and smart networks as the main enabler of the decarbonization process.

With 8.6 billion euros, a further increase compared to the investment program presented last year, the Group is confirmed as one of the leading industrial companies capable of putting its design, spending and value creation skills at the service of the objectives of sustainable development of the country and of the European Union.

The largest share of the investments is once again destined for the extension, digital transformation and repurposing of the distribution network in order to create in time the conditions for the widespread use of the new gases, such as biomethane, green hydrogen and synthetic methane, which we will soon have to receive in our networks in increasing quantities.

After twenty years we return to having objectives beyond national borders: this Plan allocates 1.8 billion euros to Greece. We expect to complete the acquisition of DEPA Infrastructure over the next few months and thus be able to verify the correspondence of the investment programs of the three operating companies with our vision and the decarbonization targets set under the REPowerEU framework.

The role of energy efficiency in the Group’s development programs is growing. With 340 million euros, almost double compared to the previous plan, we aim to create one of the main players at national level, with a focus on innovation and digitization, contributing to the consolidation of a still very fragmented sector.

Innovation remains our main growth driver, the Digital Factory is the core of our cultural change: a place of ‘contamination’ around which we have developed an approach to open innovation that allows us to meet the most advanced startups and SMEs in the world.

The ability to manage innovation and put it to value will ultimately pivot on our people, to whom we will continue to allocate important resources for training, for the creation of new professionals and to attract best talents, always paying great attention to the issues of Diversity & Inclusion and female leadership”.

The Italgas and Bludigit challenge team wins the 2022 edition of Data Girls of the Luiss Business School

Agile work and digital sustainability: the themes of the Italgas and Bludigit challenge that led one of the groups of the “Data Girls” to victory.

The sixth edition of “Data Girls”, the development course organized by Luiss Business School as part of the “Grow – Generating Real Opportunities for Women” project, which enhances female talents in STEM work areas, has come to an end. Italgas took part in the initiative, for the third year, proposing to the different teams of female and male students the “WoW – Way of Working” challenge dedicated to the analysis of new agile working methods, with special focus on what they were the collaboration tools used in companies suitable for responding to the new needs of employees.

The winning team worked on the basis of data provided by Bludigit, the digital company of the Italgas Group, regarding the use of collaboration tools and a questionnaire that was submitted to employees. Based on this data, integrated with external Istat suppliers on the impact of smart working on Italian companies, they presented solutions and insights on how to “make the use of new digital tools and technologies more sustainable.”

Specially on digital sustainability, the winning students showed how to apply certain behaviors in the professional area by using technologies and digital tools, it is possible to reduce CO2 emissions and achieve the gotals of sustainability objectives.

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

Milan, 2 May 2022 – Italgas’ Board of Directors, which met today under the chairmanship of Ms Benedetta Navarra, in line with the provisions of the Corporate Governance Code, by which the Company abides, has confirmed that the following Committees have been established and has appointed their members:

Control, Risk and Related Party Transactions Committee

  • Gianmarco Montanari*(Chairman)
  • Claudio De Marco*
  • Manuela Sabbatini**

Appointments and Compensation Committee

  • Lorenzo Parola*** (Chairman)
  • Claudio De Marco*
  • Manuela Sabbatini**

Sustainability Committee

  • Fabiola Mascardi* (Chairman)
  • Maria Sferruzza**
  • Qinjing Shen**

The Board of Directors attested that at least one member of the Control, Risk and Related Party Transactions Committee and of the Appointments and Compensation Committee fulfils the requirements set out in the Corporate Governance Code.


* Non-executive independent director in accordance with the CLF and the Corporate Governance Code

** Non-executive director

*** Non-executive independent director in accordance with the CLF