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Italgas: CDP (Carbon Disclosure Project) confirms “B” score for the fight against climate change

Milan, 8 December 2020 – For the fourth consecutive year Italgas has been recognised by CDP (Carbon Disclosure Project) for its efforts in the fight against climate change, through the confirmation of the “B” score for Climate Change. This score ranks Italgas in the “Management band”, above the European average – equal to “C” – and at the same level as the Energy Utilities Network sector.

Among other elements, CDP acknowledged the important work carried out by the Company, which compared to last year has significantly improved the score assigned to the “Scope 1&2 emissions” and “Emission reduction initiatives” categories.

Italgas is a leader in Italy in the gas distribution sector and third in Europe, it is present in over 1860 Italian municipalities with a historical presence in the major cities of Rome, Turin, Venice, Florence and Naples.

CDP is a non-profit organisation that assesses its performance in the field of climate change every year. This year more than 9,600 companies worldwide answered its questionnaires.

Italgas: UNI ISO 37001:2016 anti-corruption certification for all Group companies

Milan, 9 December 2020 – Italgas has obtained for the third consecutive year the UNI ISO 37001:2016 anti-corruption certification, achieving its extension also to the “anti-corruption government” of all Group companies, as well as the subsidiary Italgas Reti, which had already achieved it last year.

As confirmation of  their commitment to legal compliance, in 2020 Toscana Energia, Medea, Italgas Acqua, Gaxa, Seaside, Umbria Distribuzione and Metano Sant’Angelo Lodigiano also introduced a system for preventing and combating corruption, adopted on a voluntary basis and certified in accordance with the internationally recognised standard.

The management system for prevention and combating has been verified by the independent certification body DNV GL Business Assurance, after in-depth analysis that have confirmed its adequacy and compliance with the required requirements, as well as its effective implementation.

 

“Legality, transparency, corporate responsibility, integrity – commented Italgas CEO, Paolo Gallo – are just some of the values that make up the polar star of our daily actions. That’s why I consider the achievement of anti-corruption certification for the third consecutive year and its extension to all Group companies to be significant results that are at the same time coherent with the activities that we carry out every day along our network, serving 7,7 million customers all over the country“.

Italgas confirmed in Dow Jones Sustainability Index for the 2nd consecutive year

Milan, 16 November 2020 – Italgas has confirmed its position as one of the world’s top sustainability leaders thanks to the inclusion, for the second consecutive year, in the Dow Jones Sustainability Index World, the index managed by S&P Global which includes companies that have excelled globally on sustainability issues.

This result is even more important in consideration of the growing number of companies that aspire to be admitted or confirmed in the index and the increasingly stringent analysis criteria adopted to identify the best performers in terms of sustainability.

Especially, Italgas has been recognised for the progress achieved in Supply Chain Management and Environmental Reporting. This recognition rewards the company’s ability to develop increasingly accurate and transparent reporting, also thanks to the use of innovative technologies and methodologies.

The inclusion confirms Italgas’ ever-increasing focus on sustainability as an integral part of daily action and growth strategy, as well as a further source of value creation for all stakeholders.

Italgas presents the new 2020-2026 Strategic Plan: innovation and sustainability as future fundamentals

CEO Paolo Gallo: “The planned investments will make an important contribution to the country’s economy.”

“The cornerstone of our Strategic Plan is still digital transformation. In the three years since this process launched, it has already profoundly changed the Group’s DNA making it a reference model in Italy and Europe.” The presentation of the new 2020-2026 Strategic Plan opens with the words of the CEO, Paolo Gallo, finding continuity in digitisation: over time this process has allowed Italgas to construct digital and smart networks, becoming an example for other sectors. The digital infrastructures ensure an increasingly efficient service and will play a key role in the Italian and European energy transition.
In addition to digitisation, the 2020-2026 Strategic Plan includes investments of 7.5 billion (+1.1 billion on the previous Plan) which, as confirmed by Paolo Gallo, “represent an important contribution to the country as it undergoes an economic restart. This commitment coincides with infrastructure investments that therefore get the national economy moving.”
The set undertakings affect all areas of the company: from area tenders to new business opportunities, consolidation of the economic and financial structure and continuous value creation for the market and shareholders of the Group. All this comes under a single business model that incorporates the principles of sustainability, in all its forms, which, in the words of the CEO, “is the matrix that links the four pillars of our new Strategic Plan.”
The new Plan, in fact, integrates the core ESG (environmental, social and governance) values in the same way, strengthening the role of gas distribution in the energy transition and ensuring an increasingly decarbonised economy.

Development of the core business

3.1 billion of the total investments will be allocated to developing the core business of Italgas, by improving and modernising the existing infrastructure.

This business is to be developed, also thanks to the area tenders which will pay an ever more central role in the company’s future. “The area tenders, continued Gallo, “will give strong impetus to Italgas’ growth path and will further improve the quality of our service, contributing to the economic and social development of the territories we operate in.”
The company will invest 2 billion to seize the opportunities offered by the area tenders. Of this amount, 1.2 billion euros will be allocated to the acquisition of new networks, while 0.8 billion will be allocated to the maintenance, modernisation and the extension of the networks already acquired.
The deadline for the area tenders is set as 2025 and Italgas’ target is to increase its market share in Italy from the current 35% to 45% (in terms of active re-delivery points). All this is to ensure the country an increasingly efficient, sustainable, modern and secure service.

Sardinia is one of the Italian regions that, under Italgas’ 2020-2026 Strategic Plan, will have one of the most modern gas distribution networks. In recent months, thanks to the work carried out by the Italgas Group, this region has seen 800 kilometres of pipes installed and, thanks to investments of 400 million envisaged in the Plan, will see the completion of 1,100 kilometres of “digital native” networks. The island has also been guaranteed the most modern and technological network in the country, which will allow it to replace the most polluting energy sources still in use today with natural gas. For greater environmental protection and for estimated savings of up to 30% in end user consumption (compared to the fuels currently used on the island).

Digital Transformation

“An entirely digital network,” continued Gallo, “is achieved when each device connected to the network is capable of transmitting and receiving information and can be controlled remotely and in real time.” Year after year, innovation is becoming the trademark and core of the Italgas Group to an increasing degree. Digitisation in the new 2020-2026 Strategic Plan translates into around 1.1 billion in investments and sees the Digital Factory as the place where the path embarked on will be pursued.
The digital transformation programme involves the continuous improvement of processes and the constant release of innovative solutions in business management: technologies necessary to improve the service for end customers and to facilitate the work of Italgas staff onsite and remotely. This factor became decisive above all during the lockdown when Italgas continued to ensure safety and continuity of service and a prompt restart of the construction sites throughout Italy.
In recent years, the programme to replace the old meters with modern Smart Meters has played a central role in the network digitisation programme and, now that the plan is reaching an early conclusion, the most important part of the investments will be allocated to assets, processes and people always with an eye on environmental sustainability and training for all Italgas personnel.
A digital network is required for the release of new renewable gases such as biomethane and hydrogen. The change also includes support for the decarbonisation process, in which Italgas seeks to play a leading role within the scope of European energy policies. Italgas is the only European company that digitally and remotely measures and monitors methane emissions along the whole network. This process proves how integral sustainability is to Italgas’ business and represents a key value of the corporate culture.

New opportunities

One of Italgas’ objectives is to export and exploit all the best practices acquired in the gas distribution sector in other business area similar to the core one.  This undertaking translates into 240 million in investments, which will allow us to leverage the expertise and experience within the Italgas Group thanks to the companies Italgas Acqua and the ESCOs of the Group, Seaside and Toscana Energia Green. In this context too, Italgas’ contribution will be represented by the development of digital technologies, in particular for the water networks (which have been allocated 120 million euros), with the aim of improving their quality and efficiency.
The energy efficiency sector will also play a key role in the new Strategic Plan. The two ESCOs of the Group will be further integrated into the corporate dynamics to seize on the business opportunities of the public and private sector and become one of the main operators on the Italian market, also in the residential sector.
Italgas is always looking to the future. In 2021, the company will start to develop pilot projects in the Power to Gas area, a path pursued in collaboration with industrial partners, the Polytechnic University of Turin and the University of Cagliari. The programme involves the production of gas using excess renewable energy in order to play a leading role in decarbonisation and in the future of sustainable and renewable energy and to create an increasingly integrated system between production and the use of clean and “flexible” energy.

Consolidated financial structure and return for shareholders

Italgas wants to assure ongoing value creation for all its shareholders, supporting all opportunities for growth and guaranteeing them a solid return. For this reason, the new 2020-2026 Strategic Plan introduces a new dividend policy set to increase for the next four years. Remuneration will be based on a payout of 65% and with a minimum DPS (dividend per share) equal to that distributed in 2020 increased by 4% each year.

Important undertakings and investments mean Italgas will be able to confirm, at operations level, the indications announced last June.  Based on the operations, a turnover higher than 1.3 billion euros and investments of over 750 million are forecast.

2020 – 2026 Strategic Plan Presentation

Italgas Top Management presents the 2020-2026 Strategic Plan and the 2020 Third Quarter Results.

The event will take place in virtual mode on October 30th at 12 pm CET.

Watch the presentation live

ITALGAS PRESENTS ITS 2020-2026 STRATEGIC PLAN

Milan, 30 October 2020 – Chief Executive Officer Paolo Gallo is today presenting to analysts and investors the Italgas Group’s Strategic Plan for the 2020-2026 period, which was approved yesterday by the Board of Directors chaired by Alberto Dell’Acqua.

The new Plan provides for an investment programme of 7.5 billion euros with an increase of 1.1 billion euros compared to the previous one, further strengthens the Group’s leadership at Italian and European level and opens up new perspectives for development and growth. The Plan integrates environmental, social and governance factors to strengthen the strategic role of the gas distribution sector in the energy transition process towards a decarbonised economy.

The new 2020-2026 Plan is structured along four main guidelines: (i) development of the core business through organic growth (extension and maintenance of the network and increase in the redelivery points served), M&A, gas tenders and opportunities abroad; (ii) digital transformation and technological innovation that will enable Italgas to play a key role in the energy transition; (iii) new development opportunities by exploiting the Group’s expertise in the water and energy efficiency sectors; (iv) a solid and efficient financial structure to support growth opportunities and continue to ensure an appropriate return for shareholders.

Highlights

· Total investment plan of 7.5 billion euros, of which about 2 billion euros dedicated to gas tenders;

· Due to the tenders already concluded, incremental investment opportunities of 600 million euros (in addition to the 300 million euros already provided for in the previous plan);

· Over 1 billion euros for the digitization of networks, processes and people reskilling;

· Investments in new business opportunities for 240 million euros;

· Dividend policy for the next four years increasing based on a 65% pay out and with DPS minimum equal to that distributed in 2020 increased by 4% per year.

Paolo Gallo, CEO of Italgas, commented:

“The core of our Plan remains the digital transformation. A process that, in just three years since its start-up, has already profoundly changed the Group’s DNA, making it a reference model in Italy and Europe to which other operators – also from different sectors – are inspired to formulate their strategies. We wanted to invest more resources in innovation to generate further benefits and create the new generation of infrastructure that will enable our networks, already strategic today in terms of capillarity and level of penetration, to play a key role in the energy transition process.

With 7.5 billion euros of investments, of which 2 billion euros to be allocated to the tenders process, we will give a new, strong boost to Italgas’ growth path, further improving the quality of service through our digital networks and making a real contribution to the economic and social development of the areas in which we operate.

The efficiency with which we have guaranteed continuity of service during the lockdown and the speed with which we resumed site activities at the end of the lockdown are proof of the effectiveness of the choices made.

In the light of the results achieved in recent years and the growth and development activities undertaken, this Plan establishes a new dividend policy aimed at guaranteeing shareholders a growing and sustainable remuneration and the Company an appropriate level of own resources with which to face the challenges ahead”.

ITALGAS: CONSOLIDATED RESULTS FOR THE FIRST NINE MONTHS AND THIRD QUARTER OF 2020 APPROVED

Milan, 30 October 2020 – Italgas’ Board of Directors, chaired by Alberto Dell’Acqua, met yesterday and approved the consolidated results of the first nine months and third quarter of 2020.

Key figures

Consolidated economic and financial highlights[1]:

  • Total revenues: € 978.0 million (+6.7%)
  • Gross operating margin (EBITDA): € 715.7 million (+8.3%)
  • Net profit[2]: € 246.5 million (-6.1%)
  • Technical investments: € 556.6 million (+12.4%)
  • Cash flow from operating activities: € 424.4 million
  • Net financial debt[3]: € 4,770.9 million

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

In a global scenario characterised by the continuing health emergency and in which, in the specific case of the gas distribution sector, the impact of the application of Resolution 570/2019/R/gas regarding the tariff regulation of gas distribution and metering services for the 2020-2025 period continues to take its toll, the performance recorded by Italgas in the first nine months of 2020 demonstrates the company’s ability to continue generating solid economic and financial results. This is thanks to the efficiency-boosting and digital innovation measures taken by the company over recent years, while continuing to provide a safe, uninterrupted service.

Despite the difficulties arising from the health emergency, the traditional meter replacement plan resumed from May 2020 and continued with the installation of 0.9 million smart meters, also taking affiliates into account, bringing the total number of smart meters installed as at 30 September 2020 to 7.3 million. The plan is part of the wider project for the digital transformation of the entire network managed, which, to date, has already upgraded the technology of around 480 distribution networks.

The cash flow from operating activities in the first nine months of 2020 amounted to € 424.4 million.

The net financial position as at 30 September 2020 was € 4,770.9 million (€ 4,410.6 million at 31 December 2019), net of financial liabilities pursuant to IFRS 16 of € 70.0 million (€ 74.7 million at 31 December 2019).

The EBITDA of the first nine months of 2020 amounted to € 715.7 million (up 8.3% compared to 30 September 2019) and net profit was € 246.5 million (down 6.1% compared to the same period of 2019).

Paolo Gallo, CEO of Italgas, commented:

The results as at 30 September 2020 confirm the effectiveness of the strategic choices made by the Company also in the face of the protracted health emergency and the strongly penalising effects of the tariff regulation in place since 1 January: thanks to the important activities carried out we have limited the reduction in net profit to 6.1%, 246 million euros.

Investments continued to grow significantly reaching, at the end of the third quarter, around 560 million euros (+12.4%), thus giving important support to local economies.

This performance increasingly reflects the contribution of the digital transformation launched in recent years and of the new technologies developed in our Digital Factory, which enable more efficient management of the network, services and all associated activities and make it possible to ensure a safe, uninterrupted service while safeguarding the health of our staff, suppliers and all our customers.

Italgas’ Board of Directors approves the renewal of the EMTN programme with a nominal amount increased up to 6.5 billion euro

Milan, 5 October 2020 – Italgas’ Board of Directors, chaired by Alberto Dell’Acqua, met today and approved the renewal of the EMTN Programme launched in 2016 furthermore raising the Programme maximum amount from 5 up to 6.5 billion euro.

As of today, under the current EMTN Programme the notes outstanding are in nominal amount equal to 3.85 billion euro.

The Board of Directors has also approved the issue of one or more bonds to be placed only with institutional investors within one year by the signing date of the Programme. The total amount of the bonds issued may not in any case exceed the abovementioned maximum amount. The newly bonds issued may be listed on the regulated markets.

The EMTN Programme will also allow Italgas to launch bonds issued specifically for the financing of “Green”, “Social” or “Sustainable” projects.

Politecnico di Torino and Italgas together for the development of the latest energy technologies

A partnership on transversal themes of research, innovation and higher education

Turin 30 July 2020 – Develop joint research, innovation and training activities to support energy transition, sustainable mobility, circular economy. These are the objectives of the partnership signed today between Politecnico di Torino and Italgas, a leading company in Italy and third in Europe in the natural gas distribution sector, founded almost two centuries ago in the Piedmontese capital.

On the one hand research, development and innovation, on the other hand  education , advanced training and lifelonglearning.

The University and the Company will collaborate on research projects ranging from more general issues – such as digital innovation, sustainable mobility, optimization of energy consumption, efficiency of networks and recovery of resources – to more specific actions aimed at the development of innovative technologies for the inclusion of renewable gas in existing networks, the development of “power to gas” systems for the recovery of surplus energy production, to the creation of an advanced gas smart meter for “intelligent” networks.

Politecnico and Italgas will also work on different training fronts, where collaboration will be an opportunity for exchange and active interaction between teachers, researchers, students and the company with joint projects aimed at developing university masters, courses for recent graduates, events and dissemination activities through national and international networks. Italgas will also provide lecturers and researchers with the spaces and skills of its Digital Factory, the real engine of the digital transformation of the Company’s assets and processes.

“The collaboration with a company of Turin origin such as Italgas on wide-ranging and strategically important issues such as energy is also a great pleasure for us to reaffirm that our city can contribute significantly to the growth of the country,” comments the Rector of the Politecnico Guido Saracco.

“For Italgas – explained the CEO, Paolo Gallo – technological innovation and digitisation are a top priority and a lever for growth. In this context, the collaboration with an University of excellence such as the Politecnico di Torino is a great opportunity that comes true. We are thrilled to be able to work together on research and training projects of great strategic importance not only for our Company but for the whole country, which will benefit from the results we will achieve, and at the same time contribute to the training of future talents“.

Methane arrives in Sardinia: in Alghero in operation the section of the network serving Petraia

Next Monday the official activation of the conversion to methane gas of the networks of 36 municipalities in Basins 7, 9 and 22

Alghero (Sassari), 29 July 2020 – Methane in Sardinia is finally a reality. The first natural gas will in fact be distributed on the island from Monday, August 3 in Alghero, with the commissioning of the network part of Petraia, the area close to the seafront in via Lido.

At the same time, with the sending of the communications to the administrations involved, technical activities for the conversion to methane of the distribution networks of the 36 municipalities in Basins 7, 9 and 22 currently fed with LPG also began. The conversion plan foresees the completion of activities between 2020 and the first half of 2021, preferring periods of the year when the climate is still sufficiently mild.

“The beginning of the distribution of methane in Sardinia – commented Italgas CEO Paolo Gallo – is a historic moment for the island, its communities and the whole of Italy. And I am proud that it is Italgas, the company that with its almost two centuries of history has always accompanied the development of the country. Sardinia is the most effective example of our ability to innovate and make investments in the short term. We have completed 65% of the 1,100 kilometres of the total network and – after Alghero – an increasing number of people will be able to take advantage of the important benefits that methane guarantees, starting with savings in bills of up to 30%. In fact, in recent months in the basins where we operate we have already collected more than 35,000 requests for connections, demonstrating a constantly growing demand and a sign of a need that we want to satisfy in a short time”.

The section affected by the first commissioning, which will be carried out by tanker wagon, extends for more than 6.5 kilometres, along which more than 250 preparations have already been made for the same number of connection requests signed.

 

Alghero is part, together with Olmedo, of Basin 6 for which 97 kilometres of network are planned, 63 of which have already been built in accordance with Italgas’ plans to build “native digital” networks on the island, i.e. equipped with integrated sensors, remote control and proprietary applications developed in the Italgas Digital Factory, as well as preparation for the installation of optical fibre to serve Italgas networks and telecommunications operators.

As far as LPG to methane covers are concerned, the operational plan foresees the completion of the activities by 2020 for the Municipalities of Putifigari (Basin 7), Berchidda, Ittireddu, Tula, Ozieri (Basin 9), Cardedu, Esclalaplano, Urzulei (Basin 22); in the first half of 2021 in the remaining municipalities of Basins 7 (Cargeghe, Ittiri, Muros, Ossi, Tissi, Uri, Usini) and 22 (Arzana, Bari Sardo, Baunei, Elini, Gairo, Girasole, Ilbono), Lanusei, Loceri, Lotzorai, Osini, Perdasdefogu, Seui, Telana, Tertenia, Tortolì, Triei, Ulassai, Ussassai, Villagrande Strisaili) with extension also to the municipality of Pattada (Basin 10).

In all Municipalities, the activities will be preceded by public meetings to explain to residents how the work will be carried out, what to do to activate the supply of natural gas, provide all the information for a better use of the service.

Through Medea, the Group’s distribution company, Italgas is present in 17 of the 38 basins into which Sardinia is divided, including the main capitals. Italgas began operating on the island in 2017 through the acquisition of several operators and concessions. As part of an investment plan from 500 million euros to 2025, the company has planned the construction of about 1,100 kilometers of “native digital pipelines. The works are in an advanced state in all the concession areas, for a total of over 680 kilometres of network laid. An intervention which, in addition to the future benefits associated with the use of an economic and sustainable energy source such as natural gas for businesses and individuals, has already contributed to the creation of over 600 new jobs.