Italgas: consolidated results for the first nine months and Third Quarter of 2021 approved

Milan, 27 October 2021 – 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 2021.

Key figures

Consolidated economic and financial highlights:

  • Total revenues: € 1,005.7 million (+2.8%)
  • Gross operating margin (EBITDA): € 749.0 million (+4.9%)
  • Operating profit (EBIT): € 430.6 million (+7.3%)
  • Adjusted net profit attributable to the Group: € 273.6 million (+10.5%)
  • Technical investments: € 612.6 million (+10.3%)
  • Cash flow from operating activities: € 533.7 million (+21,0%)
  • Net financial debt: € 5,055.4 million
  • Net financial debt (excluding the effects pursuant to IFRS 16): € 4,987.1 million

ESG – key indicators, Scope 1 and Scope 2

  • 56,239 km of network inspected (+14.3%)
  • Fugitive emissions/gas injected into the network: 0.092% (-4.1%)
  • Fugitive emissions/km investigated: 105 Sm3/km (-6.7%)
  • km travelled by operative vehicles: 32.091 million km (+15.3%)
  • km travelled by bifuel operative vehicles powered by CNG: 92%
  • Grams of pollutants per km travelled by the car fleet: NOx (-5.6%), particulate matter (-22.6%)

Operating highlights (including affiliates):

  • Municipalities in gas distribution concessions: 1,898
  • Number of active meters: 7.75 million
  • Gas distribution network: around 74,110 Km

In a context of general economic recovery, favoured by the gradual loosening of restrictions related to the health emergency, Italgas’ trend continues to grow, with extremely positive performance of all the main economic and financial indicators, combined with further progress on the road to meeting the 2027 ESG targets.

The sustainability targets enable the Group to contribute with its strategic investment choices to the energy transition process, in line with EU guidelines, and to the full implementation of the Italian Recovery and Resilience Plan (PNRR).

The € 612.6 million of investments made in the period (+10.3% compared to 30 September 2020) bears witness to this. These investments are devoted to the digital transformation and repurposing of the networks to enable them to distribute renewable gases (biomethane and, in the medium term, green hydrogen and synthetic methane).

Approximately 545 km of new pipelines were laid in the first nine months of 2021, 62 km of which in Sardinia, where the construction of new, entirely digital networks continued, having completed approximately 900 km overall out of a total of 1,100 km to be constructed.

The EBITDA of the first nine months of 2021 amounted to € 749.0 million (+4.9% compared to 30 September 2020) and adjusted net profit attributable to the Group was € 273.6 million (+10.5% compared to the same period of the previous year).

The net financial position as of 30 September 2021 was € 5,055.4 million (€ 4,736.5 million as of 31 December 2020). The net financial position amounted to € 4,987.1 million (€ 4,660.2 million as of 31 December 2020), net of financial liabilities pursuant to IFRS 16 of € 68.3 million (€ 76.3 million as of 31 December 2020).

On 9 September 2021, Italgas was declared the ‘preferred bidder’ by the Greek privatisation fund (HRADF), in the context of the public tender called by the Greek government for privatisation of the distribution operator DEPA Infrastructure S.A..

The cash flow from operating activities in the first nine months of 2020 amounted to € 533.7 million.

 

Paolo Gallo, CEO of Italgas, commented:

“The nineteenth quarter of consecutive growth for Italgas since its return to the stock market is the best demonstration of a Company that has continued on its development and transformation path – started in 2017 – even during the most serious health emergency that the world has known in recent times.

At 30 September 2021, we have achieved an EBITDA of € 749 million, up 5% compared to the same period of 2020, and an adjusted net profit that has grown double-digit, by 10.5%, to € 273.6 million, despite the continuing negative effects of the Resolution 570.

Despite a macroeconomic and financial context characterised by ongoing volatility, we have invested more than € 610 million, in order to maintain the 2022 objective: to make Italgas the first utility in the world with a fully digitised network.

We have completed over 80% of the methanisation plan of the basins under concession in Sardinia. Furthermore, with the commissioning of Higas in Oristano, the natural gas supply chain has become even more efficient and above all affordable for consumers, enabling them to make savings on their bills (25% on average) that now offset the increase in commodity prices.

Since September our horizon goes beyond Italy: we have been indicated as “preferred bidder” in the tender for privatisation of Depa Infrastructure in Greece. We will make our know-how available to that Country and we will support the decarbonisation process through digital native networks that will be ready in the not-too-distant future to accommodate renewable gases such as biomethane, green hydrogen and synthetic methane.

 

Italgas stock included in the MIB ESG Index

Milan, 18 October 2021 – The Italgas’ stock was included in the MIB ESG Index, the first blue-chip index for Italy dedicated to the Environmental, Social and Governance (ESG) best practices of Borsa Italiana, part of the Euronext group.

The MIB ESG Index, made operational by Euronext in collaboration with Vigeo Eiris (V.E, part of Moody’s ESG Solutions), includes the most important Italian listed issuers that demonstrate they implement the most effective behaviors within the three main parameters of corporate social responsibility.

The inclusion of Italgas’ stock in the MIB ESG Index is a further recognition of the Company’s strong focus on the sustainability targets set in the 2021-2027 Strategic Plan (-30% in greenhouse gas emissions, -25% of energy consumption, focus on people), as well as of the strategic investment and of the contribution made, through them, to the energy transition process.

The MIB ESG Index has been launched in response to a growing demand for sustainable investment tools by investors and by the market.

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

Milan, 15 September 2021 – Italgas’ Board of Directors, chaired by Alberto Dell’Acqua, met today and approved the renewal of the EMTN Programme confirming  the maximum nominal amount of 6.5 billion euro.

 

As of today, under the current EMTN Programme the notes outstanding are in nominal amount equal to 4.59 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 EMTN 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 the Company to issue ESG bonds in the form of “Sustainability-Linked Notes”, in line with the financial strategy communicated to the market during the Strategic Plan 2021-2027 presentation.

Italgas Preferred Bidder in the tender for the privatization of DEPA Infrastructure S.A.

Milan, 9 September 2021 – Italgas announces that it has been selected as “Preferred Bidder” in the tender process for the acquisition of 100% of the share capital of DEPA Infrastructure S.A., currently owned by the Hellenic Republic Asset Development Fund S.A. (HRADF) and Hellenic Petroleum S.A. (HELPE).

 

DEPA Infrastructure holds a 51% stake in Thessaloniki – Thessalia Gas Distribution S.A. (EDA Thess), a 100% stake in Attiki Natural Gas Distribution Single Member Company S.A. (EDA Attikis) and a 100% stake in Public Gas Distribution Networks S.A. (DEDA), the three major gas distribution companies in Greece.

 

Italgas CEO Paolo Gallo commented:

 

“We are the ideal partner to support the Greek government in the development of a key energy infrastructure that will allow the country to rapidly proceed along the path of decarbonisation of the economy. Thanks to a new generation of «native digital» grids – extensive, flexible and smart – we will support the phase-out programme from coal and lignite via natural gas, while at the same time promoting the energy transition to renewable sources such as biomethane, e-gas and green hydrogen. We will bring to Greece the experience and implementation capability that we have gained in almost two centuries of history, together with the skills developed in the digital transformation of the network and the Digital Factory that today place the Italgas Group in a position of undisputed technological leadership in the sector worldwide”.

 

Alberto Dell’Acqua, Italgas Chairman, stated:

 

“I am proud of the result achieved, which rewards the Italian entrepreneurial capability as well as the technical and technological leadership of Italgas. In recent years, the company has been able to continue to grow and is now recognized as an international benchmark for the sector also in the perspective of energy transition”.

 

 

Italgas has agreed to pay a consideration equal to 733 million Euro for 100% of DEPA Infrastructure equity.

 

Italgas will fund the transaction via a fully committed financing package.

 

The signing of the agreements for the acquisition is subject to completion of further steps envisaged by the tender procedure and by local legislation, while the closing of the transaction is expected by year-end, once the required authorizations have been received (including anti-trust clearance).

 

Italgas has been assisted by J.P. Morgan as Sole Financial Advisor and Sole Underwriter of the financing, by Milbank and Karatzas and Partners as Legal Advisors, by Grant Thornton as Regulatory Advisor and by Mazars as Accounting and Tax Advisor.

 

Conference call 

At 3pm CET on Thursday September 16, 2021, a conference call will be held to present the transaction to financial analysts and investors. The presentation may be viewed, through audio webcasting, on the Company’s website (www.italgas.it). In conjunction with the conference call, the supporting material for the presentation will also be provided in the “Investor Relations/Presentations” section of the website.

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: 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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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.

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/

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