Last price

Cerca

Author: adigiuseppe

COP29: Italgas Awarded “Gold Standard” for the Fourth Consecutive Year by the International Methane Emissions Observatory

Posted on by adigiuseppe

Baku (Azerbaijan), November 15th, 2024 – For the fourth year in a row, Italgas has received the prestigious Gold Standard recognition in the An Eye on Methane 2024 report from the International Methane Emissions Observatory (IMEO), published by the United Nations Environment Programme with support from the European Commission.

The report, presented today at COP29 in Baku, provides an in-depth analysis of methane emissions data supplied by companies participating in OGMP 2.0, evaluating progress in emission reduction efforts.

This recognition highlights Italgas’s consistent commitment to monitoring and reducing methane emissions, demonstrating advanced expertise in emissions measurement achieved through innovative technologies and the digital transformation of assets. The report also emphasizes Italgas’s role in presenting one of the most ambitious implementation plans within the gas distribution sector.

Italgas stands out as the only downstream company featured in the “Stories of Progress in OGMP 2.0” thanks to its extensive emissions measurement campaign, which has enabled the identification of major emission sources and improvement in data accuracy. Furthermore, the company collaborates with a team of researchers to conduct controlled gas release tests at a testing field, aimed at identifying previously undetected emission sources.

The company has also distinguished itself by adopting advanced technological solutions, such as the CRDS (Cavity Ring-Down Spectroscopy) technology developed by California-based Picarro, which ensures greater speed, sensitivity, and range compared to traditional methods.

Finally, the report acknowledges Italgas’s leadership role within the sector, driven by a proactive approach to emission reduction, not only within the company itself but also by encouraging best practices and offering mentorship to other industry operators.

The An Eye on Methane 2024 report is based on data collected during the fourth year of the OGMP 2.0 program, the framework introduced by UNEP in 2020 for methane emissions reporting and monitoring.

COP29: Italgas and SOCAR Sign a Cooperation Agreement for the Gas Distribution Sector

Posted on by adigiuseppe

Baku (Azerbaijan), November 12, 2024 – Italgas and SOCAR (State Oil Company of the Azerbaijan Republic) signed a Cooperation Agreement today at COP29, renewing and strengthening the collaboration between the two industrial groups.

The agreement, signed by Paolo Gallo, CEO of Italgas, and Elshad Nassirov, SOCAR Vice President responsible for gas, consolidates a strategic partnership aimed at promoting innovation, efficiency, and sustainability in the gas distribution sector.

Key areas of collaboration include the exchange of best practices and technologies to accelerate the energy transition and digitalization, with a particular emphasis on decarbonizing infrastructure through gas leak detection using Picarro technology, as well as process digitalization through the agile methodology, which has been in place at Italgas’s digital factory—the group’s hub for digital transformation—since 2018.

The agreement stems from the existing partnership between Bludigit, Italgas’s Digital Company, and Azerigas Production Union, the entity responsible for natural gas distribution and sales in the Republic of Azerbaijan, aimed at identifying leaks in Azerbaijan’s gas network and reducing emissions within the distribution sector. To this end, Picarro’s CRDS (Cavity Ring-Down Spectroscopy) technology is already being used in a pilot phase, alongside data analysis, to enhance effectiveness and timeliness in detecting leaks, including minor ones, and to guide preventive maintenance actions for the network.

“We strongly believe in the value of cooperation and global dialogue as key accelerators on the path to net zero – stated Paolo Gallo, CEO of Italgas -. We are excited to embark on this partnership with SOCAR, a company that, like us, views technological innovation and sustainability as fundamental pillars of growth. In this context, the agreement holds strategic significance, as it will enable us to expand resources dedicated to breakthrough solution development and explore new technologies, further strengthening our globally recognized leadership in the gas distribution sector”.

“We are pleased to deepen our collaboration with Italgas, a company that shares SOCAR’s commitment to innovation and sustainability – stated SOCAR -. This agreement represents an important milestone in our journey towards a net-zero future, allowing us to integrate advanced technologies like Picarro’s CRDS into our gas distribution infrastructure. By enhancing our capabilities in leak detection and digitalization, we are not only improving efficiency but also contributing significantly to emissions reduction across the network“.

The awareness of the importance of reducing emissions across the entire gas infrastructure chain, essential for advancing towards a net-zero economy, will be the central theme of the event organized by Italgas on November 15 at the Italian Pavilion at COP29. This debate, titled “Methane Emissions in the Global Path to Net Zero: Infrastructure as a Catalyst for Sustainable Gas Trade,” will involve institutional figures, representatives from think tanks, NGOs, and industry operators. The discussion will focus on the urgency of containing methane emissions to combat climate change, exploring industrial, financial, and policy strategies applicable to each component of the infrastructure chain, with a particular focus on developing countries.

Among the speakers, Pier Lorenzo Dell’Orco, CEO of Italgas Reti, will outline the transformation journey of the Italgas Group into a network tech company and its leadership in monitoring and reducing methane emissions. Professor Francesco Corvaro, Special Envoy for Climate Change of the Italian government, will present Italy’s commitment as a strategic player and the contribution of “international champion” companies in sharing best practices.

Moody’s improves Italgas ESG Assessment

Posted on by adigiuseppe

Milan, November 5th, 2024 – Italgas has received an updated ESG Assessment from Moody’s of 70/100, up from 69/100 the previous year and above the sector average of 54/100. The updated score reflects Italgas’ strong commitment to sustainability and actions it has taken to manage environmental, social and governance risks.

This recognition follows the assignment to Italgas of an ESG Risk Rating of 14.6 by Sustainalytics in October. According to Sustainalytics, the Group has a “Low Risk” of experiencing material financial impacts from ESG factors.

Italgas: the Board of Directors approves the renewal of the EMTN programme. Maximum nominal amount increased

Posted on by adigiuseppe

Milan, October 24, 2024 – Italgas’ Board of Directors, chaired by Benedetta Navarra, met today and approved the renewal of the EMTN Programme (Euro Medium Term Notes) with a maximum nominal amount of 10 billion euros.

As of today, under the previous EMTN Programme, which had a maximum nominal amount of 6.5 billion euros, the notes outstanding are equal to 5.6 billion euros in nominal amount.

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 date of the renewal of the Programme. The total amount of the bonds issued may not in any case exceed the abovementioned maximum amount. The new bonds issued may be listed on the regulated markets.

Italgas: consolidated results for the first nine months and third quarter of 2024 approved

Posted on by adigiuseppe

Milan, 24 October 2024 – The Italgas’ Board of Directors, which met today chaired by Benedetta Navarra, approved the consolidated results of the first nine months and third quarter of 2024 (unaudited).

 

Highlights1

  • Adjusted gas distribution regulated revenues: 1,211.6 million euros (+11.5%)
  • Adjusted total revenues: 1,309.3 million euros 2
  • EBITDA adjusted: 1,009.3 million euros (+10.9%)
  • EBIT adjusted: 605.6 million euros (+12.8%)
  • Adjusted net profit attributable to the Group: 361.7 million euros (+14.2%)
  • Technical investments: 549.7 million euros
  • Cash flow from operating activities: 712.9 million euros
  • Net financial debt (excluding the effects pursuant to IFRS 16): 6,813.5 million euros
  • Net financial debt: 6,904.7 million euros
  • Scope 1 and 2 emissions: 95.8 103 tCO2 eq (-10.0%)
  • Net energy consumption: 285.1 TJ (-10.9%)
  • Km of network investigated: 110,483 km (+35.0%)

 

The economic and financial results for the first nine months of 2024 reflect Italgas’ excellence in infrastructure development and asset digitisation and follow the 2024-2030 Strategic Plan presented at the beginning of October.

The recent confirmation by the rating agencies Moody’s and Fitch of Italgas’ long-term credit rating (Baa2 and BBB+ with Stable Outlook) also following the acquisition of 2i Rete Gas, as well as the prospect of an improvement of the S&P’s rating of 2i Rete Gas, in the context of the integration with Italgas, are in line with the declared objective of keeping the credit rating unchanged.

In the first nine months of the year, total adjusted revenues amounted to 1,309.3 million euros, driven by the increase in gas distribution regulated revenues (+11.5% compared with the same period in 2023) and by the contribution of Acqua Campania, both offsetting the anticipated drop in revenues from energy efficiency activities (end of the so-called “Superbonus” programme).

In the gas distribution sector, in Italy, the activities aimed at repurposing and completing the digitisation of the network under the control of the DANA system continue; in Greece, the development of the network continues successfully towards the areas of the country not yet reached by methane, thus also contributing to achieving the objectives of decarbonising consumption.

In the water sector, activities continue on the integration of recently acquired companies into the Group and on sharing technical and technological know-how aimed at fostering the development of a more efficient service, reducing losses, and creating value for communities.

During the first nine months of 2024, 549.7 million euros of technical investments were made, also enabling 521 kilometers of gas distribution pipelines to be laid.

Adjusted EBITDA for the first nine months of 2024 amounted to 1,009.3 million euros, up +10.9% compared to 30 September 2023, thanks also to continued actions to contain operating costs, in the context of an improved regulatory framework. Cash flow from operating activities amounted to 712.9 million euros – an increase of 314.8 million euros compared with the previous year – and enabled investments to be fully financed, generating a free cash flow, before M&A transactions, of 103.6 million euros.

The Group’s commitment to improving its environmental performance continues. In the first nine months of 2024, net energy consumption was down -10.9%, and Scope 1 and 2 emissions were down -10.0%, reflecting the energy efficiency initiatives implemented and, at the same time, the focus on reducing leakages. Against an increase of 35.0% of kilometres of network investigated, compared with the same period of the previous year, the rate of atmospheric leaks, measured as the ratio between the volume of leaked gas and kilometres of network investigated, fell by 36.7%.

Paolo Gallo, CEO of Italgas, commented:

 

Italgas continues on its growth path, which in the first nine months of 2024 produced solid performances thanks also to our vision on the future of energy that the Group is rapidly transforming into reality. Gas networks – smart, digital, and flexible – are and will be one of the main drivers of the ecological transition, as they allow for the acceptance of incremental quotas of renewable gas.

 

The nine months ended with the main economic indicators showing double-digit growth. Adjusted EBITDA increased by 11% to over 1 billion euros, and Group Adjusted Net Profit amounted to around 362 million euros, up 14% compared with the same period last year.

The Strategic Plan 2024-2030, which includes the integration of 2i Rete Gas and the widespread use of artificial intelligence in all the Group’s activities, sets further and more ambitious goals in terms of investments, achievement of green transition targets, and value creation for all our stakeholders.

1 The consolidated balance sheet and income statement of the Italgas Group at 30 September 2024 reflect the effects of the first consolidation, starting 30 January 2024, of Acqua Campania, while these are not included in the Scope 1 and 2 emissions and net energy consumption data.

2 Down by 60.5 million euros, mainly due to the reduction in revenue from the “Superbonus”.

Italgas and the Ministry of Foreign Affairs: Memorandum of Understanding to Strengthen the Safety of Employees Traveling Abroad

Posted on by adigiuseppe

Rome, October 16th, 2024 – Italgas strengthens its commitment to protecting employees on business trips abroad thanks to a Memorandum of Understanding signed today at the Ministry of Foreign Affairs and International Cooperation between Italgas CEO, Paolo Gallo, and the Head of the Crisis Unit, Nicola Minasi, under the initiative of Foreign Minister Antonio Tajani.

The agreement marks the beginning of a collaboration aimed at further raising international safety standards by mitigating potential risks associated with business trips.

The Memorandum of Understanding is intended to reinforce Italgas’ commitment to the safety of its employees traveling or working abroad, in line with the principles of “Duty of Care” and international standards for travel risk management.

The collaboration with the Italian Ministry of Foreign Affairs, supported by the availability of dedicated digital applications, offers multiple benefits to the Group’s employees. In addition to the information already available through the “Viaggiare Sicuri” app and the “DoveSiamoNelMondo” portal, the Group’s employees can access IG DOME at any time. This innovative application, developed by Italgas, provides real-time data on traffic, weather, public transport, natural events, and security issues related to the countries they are visiting. In case of need, employees can use IG DOME to request support from the company’s Security Unit to be located, ensuring maximum coordination with the Crisis Unit.

The Protocol includes joint training programs and informational activities to continue promoting a culture of safety during business trips, protecting Italgas Group employees, and optimizing the security measures implemented by the Company.​

“The safety of our nationals abroad is a priority for the Government and my Ministry—as demonstrated by this agreement—and it requires collaboration between the Farnesina, our diplomatic network, and companies like Italgas,” stated the Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation, Hon. Antonio Tajani, highlighting the importance of teamwork among all parties involved, both public and private, especially in high-risk contexts.​

“The safeguarding of the health and safety of our Group members — stated Paolo Gallo, CEO of Italgas — has always been the primary objective of our daily actions. Thanks to continuously evolving technological innovation, we are able to improve and make our services dedicated to employees increasingly efficient. This closer collaboration with the Crisis Unit of the Farnesina allows us to be even more effective in preventing the risks our colleagues may face while traveling for work.”​

Italgas: Moody’s Ratings (Moody’s) affirms rating and outlook

Posted on by adigiuseppe

Milan, October 10, 2024 – The rating agency Moody’s affirmed today Italgas S.p.A’s Long-term Issuer rating at ‘Baa2’, Stable Outlook.

The rating affirmation follows Italgas’ announcement on the agreement reached for the acquisition of 2i Rete Gas S.p.A., highlighting that, following the transaction, Italgas will continue to be supported by the low business risk profile of its activities, underpinned by the high share of revenues generated under the Italian regulatory framework, assessed as stable and predictable.

Furthermore, rating affirmation takes into consideration Italgas’ efficiencies in operating spending, low average cost of debt and limited exposure to volume risk.

Moody’s highlights that Italgas’ rating remains constrained by the company’s exposure to the country risks associated with Italy (Baa3 stable).

Italgas: Fitch Ratings (Fitch) affirms rating and outlook

Posted on by adigiuseppe

Milan, October 9, 2024 – The rating agency Fitch affirmed today Italgas S.p.A’s Long-term Issuer rating at ‘BBB+’, Stable Outlook.

The ‘BBB+’ rating affirmation “follows the agreement reached for the acquisition of 2i Rete Gas S.p.A. and reflects the improved business risk profile of the combined entity, expected funds from operations (FFO) net leverage consistent with the current rating (also thanks to the expected equity increase)” and the commitments made by management towards deleveraging.

Furthermore, the rating reflects Italgas’s positive track record in executing acquisitions and enhancing operating profitability, recognizing its ability to anticipate gas sector trends with the aim of effectively handling and managing renewable gases.

Italgas presents the 2024-2030 Strategic Plan

Posted on by adigiuseppe

€15.6 billion of investment providing the country the European champion capable of building the gas industry of the future. These include the acquisition of 2i Rete Gas and the widespread application of AI – across gas, water, energy efficiency and information technology – which is expected to drive double-digit net income growth throughout the Plan period. The floor of the dividend policy to 2026 has also been improved. 

Milan, October 7, 2024 – The CEO of Italgas, Paolo Gallo, today presents the Group’s Strategic Plan for the period 2024-2030 to analysts and investors, approved by the Company’s Board of Directors chaired by Benedetta Navarra.

€15.6 billion are the expected investments over the plan period, with an increase of €7.5 billion (+92% compared to the previous plan) and aimed at the acquisition of 2i Rete Gas, interventions for the development of gas distribution in Italy and Greece, strengthening the presence in the water sector, and accelerating the growth in energy efficiency, with a strong commitment to achieving EU climate targets.

Italgas emphasizes its commitment to consolidating the gas distribution sector in Italy with the aim of multiplying synergies to ensure significant benefits for families and businesses in terms of safety, efficiency, service quality, decarbonization of end uses, and costs. The use of artificial intelligence across all Group activities will also enable a new phase of digital transformation, accelerating the ecological transition.

The Group will continue to benefit from a solid and efficient financial structure, with a commitment to maintaining the current credit rating. The expected synergies and operational efficiencies allow for a forecast of double-digit net income growth over the plan period1. Therefore, it has been possible to raise the floor of the dividend policy until 2026, ensuring a growth rate of 5% annually starting from the dividend 2023 of €0.352 per share2, while also confirming the 65% payout.

Highlights

  • Italgas is the European leader in gas distribution, with unique capabilities of innovation, digitalization and investment.
  • Acquisition of 2i Rete Gas for €5.3 billion of enterprise value, with a 4% premium on the 2025 expected RAB and closing expected within the 1H 2025.
  • Financing of the transaction through debt and a €1 billion capital increase, aimed at preserving the credit rating.
  • €15.6 billion of total investments for the acquisition of 2i Rete Gas, and for the development, digitalization, and repurposing of infrastructures in Italy and Greece.
  • €200 million in synergies from efficiencies, cost reductions, and AI, in addition to €80 million revenues from incremental investments in digitization on 2i Rete Gas network by 2030.
  • EPS accretion starting from 2026, including the expected capital increase, reaching approximately 15% in 2029.
  • Double-digit net income growth anticipated by 2030.
  • Dividend policy: confirmed the 65% payout and increased floor to 5% annual growth, now based on the 2023 DPS.
  • Confirmation of ESG targets also including the new perimeter and Net Zero goal by 2050.
  • Strong focus on people and the integration of resources from 2i Rete Gas, emphasizing training and promoting diversity, equal opportunities, and inclusion.

Italgas CEO Paolo Gallo stated:

“The Strategic Plan 2024-2030 will go down in Italgas’ history as the blueprint for creating the European champion in gas distribution, further reinforcing our commitment to the digital transformation of infrastructure, benefiting the entire country.

The new scale of the Group, combined with innovation and digital transformation, is the decisive factor in ensuring we meet the targets of the energy transition, the security of supply and the sustainability of energy costs for individuals and businesses.

An investment of €15.6 billion will provide a strong boost to our growth trajectory, with the largest share once again allocated to the development, digitization, and repurposing of the gas distribution network in both Italy and Greece. Our commitment to the widespread use of Artificial Intelligence will enable us to enter a new phase of digital transformation.

Digital transformation remains the primary strategic lever also for strengthening our activities in the water sector and energy efficiency. With €750 million, we will continue to work towards enhancing our role as a key player in water — which has long suffered from a lack of adequate smart investments in networks — and to grow in energy efficiency as an essential tool for achieving energy transition goals.

The figures in this Plan, with an average annual growth of 13% in EBITDA and net profit by 2030, demonstrate how the extraordinary capabilities of the women and men of Italgas and 2i Rete Gas can create value for shareholders and all stakeholders, leveraging efficiency, innovation, and sustainability.”

1Excluding the impact of the Purchase Price Allocation (PPA).

2Compared to the previous floor of 4% annual increase of 2022 dividend.

Changes to Italgas’ calendar of corporate events 2024 Presentation of the 2024-2030 Strategic Plan set for 7 October

Posted on by adigiuseppe

Milan, 5 October 2024 – Italgas announces that the publication of the press release relating the 2024-2030 Strategic Plan, initially scheduled for 12 June 2024, is now set for 7 October 2024, before the opening of the financial markets.

Consequently, the conference call to present the Plan to investors and financial analysts will be held on 7 October 2024 at 3 pm CEST at Italgas headquarters via Carlo Bo 11 – Milan.

An invitation with details will follow.