Comunicati: Press release price sensitive

Italgas is awarded the management of the natural gas distribution service in the Atem area “Torino 1”

Investments of approximately 330 million euros are planned in the area, with a significant impact on local GDP, as well as actions to foster the decarbonization of local public transportation

Turin, 4 March 2021 – The Contracting Authority, the Municipality of Turin, has officially awarded Italgas the tender for the management of the natural gas distribution service for the next 12 years in the “Torino 1” area, which includes the regional capital city and the municipalities of Moncalieri, Grugliasco, Rivoli, Rivalta di Torino and Nichelino.

The awarding of the Atem area, including about 560,000 consumers, allows the company to ensure continuity in the management of the service in an area historically linked to the company, where it was founded and has operated since 1837, and to implement an investment plan of about 330 million euros.

The pivotal investment plan will produce a significant effect on local GDP, with positive results also in terms of employment by creating 3,000 new jobs in the related industries. In addition, the extension of the service to new areas will enable the users concerned to make significant savings on their bills, estimated at more than 50 million euros over the 12 years of the contract, thanks to the lower cost of natural gas compared to other fuels currently used.

Italgas plan includes the following actions:

– The full upgrade of 340 kilometres of networks, over 600 intermediate plants which will be equipped with monitoring and remote control;

– the laying of more than 40 kilometres of new grids and the upgrading of about 15 kilometres of network to reach areas not yet served, in order to make methane available to about 4,500 new users;

– the replacement of 215,000 traditional meters with next-gen smart meters;

– the construction of two new methane distribution plants to serve the bus depots of GTT, the local public transportation company, to support the city programs to decarbonize road transportation.

Pier Lorenzo Dell’Orco, CEO of subsidary Italgas RETI, commented: “The award of the Atem area ‘Torino 1’ is an important result both for the Company, which confirms its presence in the city where it was born almost two centuries ago, and for the territory, which will benefit from 330 million euros of investment, concentrated mainly in the first years of the contract. As well as ensuring an important multiplier effect on the local economy, the plan will also guarantee relevant environmental benefits thanks to an overall reduction in emissions of CO2 and fine particles. After the Atem areas ‘Torino 2’, Valle d’Aosta and Belluno, this fourth tender assigned to Italgas raises the total value of the investments planned in the areas concerned to around one billion euro, confirming the virtuous effect that gas tenders have on the Country’s economic recovery and the need to speed up their implementation decisively”.

Milan, 15 February 2021 – The Tender Offers launched by Italgas S.p.A. (rating BBB+ by Fitch, Baa2 by Moody’s) terminated with very positive outcome, having registered a percentage of attendance higher than 58% of the outstanding Notes due January 2022.

Including also the Notes due March 2024, the overall repurchase amounts to nominal €255,672,000.

The transaction, which is the second Liability Management exercise carried out by Italgas, has been announced last 5 February together with the dual-tranche bond issue with size of 500 million euros each, due February 2028 and February 2033 respectively. Thanks to the combined effect of these transactions, the Company managed to further reduce its refinancing risk while extending the average duration of its bond portfolio.

Based on the terms and conditions defined in the Tender Offer Memorandum dated 5 February 2021, below are the detailed results of the Tender Offers:

• €750,000,000 0.500 per cent. Notes due 19 January 2022, whose outstanding amount is equal to nominal €268,360,000 (XS1551917245): purchased for a total nominal amount of €156,053,000. Upon completion of the transaction, the notes still outstanding will be in nominal amount equal to €112,307,000;

• €650,000,000 1.125 per cent. Notes due 14 March 2024, whose outstanding amount is equal to nominal €480,945,000 (XS1578294081): purchased for a total nominal amount of €99,619,000. Upon completion of the transaction, the notes still outstanding will be in nominal amount equal to €381,326,000.

The results of the Tender Offers will be made available on the website of the Luxembourg Stock Exchange at www.bourse.lu.

Pursuant to the terms and conditions defined in the Tender Offer Memorandum, Italgas will settle for cash the amount due for the repurchased Notes tomorrow, 16 February 2021.

NOT TO BE PUBLISHED OR DISTRIBUTED IN THE UNITED STATES, AUSTRALIA, CANADA AND JAPAN

Milan, 5 February 2021 – Today Italgas SpA (rating BBB+ by Fitch, Baa2 by Moody’s) successfully priced a new dual tranche bond issue, due February 2028 and February 2033, both at fixed rate and for an amount of 500 million euros each, annual coupon of 0% and 0.5% respectively, under its EMTN Programme (Euro Medium Term Notes) established in 2016 and renewed by resolution of the Board of Directors on October 5, 2020.

The transaction has gathered almost 3.4 billion euros of demand from a high quality and geographically diversified investor base. In particular, the 12-year tranche represents the corporate bond with the lowest coupon issued so far in Italy on that maturity.

Taking advantage from favorable market conditions, the Company carried on its process of cost of debt optimization and refinancing risk reduction, further extending the average duration of the bond portfolio.

Joint Bookrunners of the placement, restricted to institutional investors only, were BNP Paribas, J.P. Morgan Securities plc, Unicredit Bank AG, Intesa Sanpaolo S.p.A., Crédit Agricole CIB, Goldman Sachs International, Mediobanca S.p.A and Morgan Stanley.

The bond will be listed on the Luxembourg Stock Exchange and the proceeds will be partially used to repurchase part of the two bonds maturing in 2022 and in 2024 subject to the tender offers launched this morning.

Details of the two tranches are as follows:

Amount: 500 million euros

Maturity: 16 February 2028

Annual coupon: 0%

Issue price: 98.866%

Amount: 500 million euros

Maturity: 16 February 2033

Annual coupon: 0.5%

Issue price: 98.995%

Milan, 5 February 2021 – Italgas S.p.A. (rating BBB+ by Fitch, Baa2 by Moody’s) has launched this morning a new dual-tranche fixed rate bond issue, with respective maturities of 7 and 12 years, for an amount of 500 million Euros each.

Joint Bookrunners of the placement, restricted to institutional investors only, are BNP Paribas, J.P. Morgan Securities plc, Unicredit Bank AG, Intesa Sanpaolo S.p.A., Crédit Agricole CIB, Goldman Sachs International, Mediobanca S.p.A and Morgan Stanley.

At the same time, the Company has announced two Tender Offers addressed to holders of the following Notes issued by Italgas S.p.A. under its Euro Medium Term Note Programme:

• €750,000,000 0.500 per cent. Notes due 19 January 2022, whose outstanding amount is equal to nominal €268,360,000 (XS1551917245);
• €650,000,000 1.125 per cent. Notes due 14 March 2024, whose outstanding amount is equal to nominal €480,945,000 (XS1578294081).

The target overall amount accepted will be determined by Italgas considering the tender maximum amount up to €300,000,000 and in accordance with the terms and conditions of the Tender Offer Memorandum dated 5 February 2021, subject to the applicable offers and distributions’ limitations.

The launch notice of the Tender Offers is available on the website of the Luxembourg Stock Exchange at www.bourse.lu

BNP Paribas, J.P. Morgan AG and Unicredit Bank AG are acting as Dealer Managers.

Transaction’s results will be announced to the market in the coming days. Italgas will pay the overall amount by cash.

The transactions are part of Italgas’ strategy to optimize its debt structure and extend the financial maturity profile of the Company.

Milan, 28 January 2021 – In line with the developments included in its 2020-2026 Strategic Plan, Italgas is making new acquisitions, strengthening its leadership in the gas distribution sector thanks to an agreement with Conscoop, the consortium of cooperatives from Forlì which holds, among others, the gas concessions in Basin 33 in Sardinia, through its subsidiary Isgas33, and Olevano sul Tusciano in Campania (Atem Salerno 3) through its subsidiary Mediterranea Energia.

In Campania, following the framework agreement signed between Italgas and Conscoop on 28.12.2018, the acquisition by Italgas of Mediterranea Energia’s going concern relating to the gas concession in the municipality of Olevano sul Tusciano (SA) was concluded today. The network extends for approximately 26 kilometres, covering a potential pool of users totalling 2,500 resident households.

The value of the transaction (enterprise value) has been set, by way of an advance, at € 1.1 million and it is subject to adjustment on the basis of the final RAB, which will be approved by ARERA during 2021.

In Sardinia, with today’s agreement, the companies agreed that, by the deadline of 5 July 2021 and once certain precedent conditions have been met, Italgas will take over the entire stake in Isgas33. Today, Isgas33 has completed the conversion from LPG to natural gas of the distribution network in the municipalities of Quartu S. Elena, Monserrato, Quartucciu, Settimo S. Pietro and Sinnai, serving a potential user base of over 31,000 resident households.

The amount of transaction (enterprise value) has been set equal to the RAB to be approved by ARERA in the first half of 2021, currently provisionally estimated at approximately €25 million.

Milan, 25 January 2021 – Italgas announces the financial calendar and the dates of the  publication of its 2021 financial results as approved by the Board of Directors:

 

Group Annual Integrated Report at  December 31, 2020 and draft financial  statements at December 31, 2020;  Dividend proposal for 2020;  Report on Corporate Governance and  Ownership 2020;  Report on Remuneration 2021;   Call of Shareholders’ Meeting.	Board of Directors approval  Press release and   Conference call*	March 10, 2021  March 11, 2021
Financial statements at December 31,  2020;  Dividend approval for 2020.	Shareholders’ Meeting  Press release**	April 14, 2021 in a  single call
First quarter 2021 report.	Board of Directors approval  Press release and   Conference call**	May 4, 2021  May 5, 2021
Strategic Plan 2021-2027.	Board of Directors approval  Press release and Strategy  Presentation*	June 14, 2021  June 15, 2021
Interim financial report at June 30, 2021.	Board of Directors approval  Press release and   Conference call*	July 26, 2021  July 27, 2021
Third quarter 2021 report.	Board of Directors approval  Press release and   Conference call*	October 26, 2021 October 27, 2021

* 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 on the same day;

** Press release will be issued at the end of Shareholders’ meeting;

– The dividend for the 2020 financial year will be paid on 26 May 2021 (record date 25 May 2021) with coupon payment date 24 May 2021.

– A road show to present the company’s objectives as established in the 2021-2027 Strategic Plan to institutional investors and financial analysts is scheduled to start in  June 2021.

Any amendment to the above calendar will be notified to the market in due time.

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”.

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.

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.

Milano, 27 luglio 2020 – Il Consiglio di Amministrazione di Italgas, riunitosi oggi sotto la presidenza di Alberto Dell’Acqua, ha approvato i risultati consolidati del primo semestre 2020.

Principali dati

Highlight economici e finanziari consolidati:

• Ricavi totali: 646,8 milioni di euro (+6,1%)
• Margine Operativo Lordo (EBITDA): 462,7 milioni di euro (+6,6%)
• Utile netto: 153,4 milioni di euro (-7,7%)
• Investimenti tecnici: 369,5 milioni di euro (+16,3%)
• Flusso di cassa da attività operativa: 388,8 milioni di euro
• Indebitamento finanziario netto: 4.625,8 milioni di euro

Highlight operativi comprensivi delle società partecipate:

• Comuni in concessione per il servizio di distribuzione gas: n. 1.886
• Numero di contatori attivi: 7,7 milioni
• Rete di distribuzione gas: circa 73.000 Km

Le performance registrate da Italgas del primo semestre 2020 dimostrano la capacità della Società di continuare a generare solidi risultati economico-finanziari grazie alle azioni di efficientamento e di innovazione digitale intraprese negli ultimi anni, che hanno consentito di mitigare gli impatti della Delibera 570/2019/R/gas relativa alla regolazione tariffaria dei servizi di distribuzione e misura del gas per il periodo 2020-2025, di assorbire gli effetti negativi della pandemia, nonché di garantire la sicurezza e la continuità del servizio durante il periodo di lockdown.

I 369,5 milioni di euro di investimenti realizzati nel periodo (+16,3% rispetto al primo semestre 2019) sono stati dedicati allo sviluppo e al rinnovamento delle reti e alla trasformazione digitale.

Nel corso del primo semestre 2020 sono stati posati circa 486 km di nuove condotte contro i circa 379 km del corrispondente periodo del 2019. In Sardegna l’attività di costruzione delle reti di distribuzione è proseguita con la posa di circa 216 km di nuove reti superando i 680 km complessivi su un totale da realizzare di circa 1.100 km.

Nonostante le difficoltà derivanti dall’emergenza sanitaria, il piano di sostituzione dei contatori tradizionali è proseguito con l’installazione, considerate anche le società partecipate, di 0,6 milioni di smart meter, portando a circa 7,1 milioni il numero complessivo di contatori intelligenti installati alla fine del primo semestre 2020. Il piano, che si prevede di terminare nel 2020, è parte del più ampio progetto di trasformazione digitale dell’intero network gestito e ad oggi ha portato già all’upgrade tecnologico di oltre 400 reti di distribuzione.

I fabbisogni connessi agli investimenti netti del primo semestre 2020 sono stati integralmente coperti dal positivo flusso di cassa da attività operativa, pari a 388,8 milioni di euro.

La posizione finanziaria netta al 30 giugno 2020 è pari a 4.625,8 milioni di euro (4.410,6 milioni di euro al 31 dicembre 2019), al netto dei debiti finanziari ex IFRS 16 pari a 75,5 milioni euro (74,7 milioni di euro al 31 dicembre 2019).

L’EBITDA del primo semestre 2020 ammonta a 462,7 milioni di euro (+6,6% rispetto al 30 giugno 2019) e l’utile netto è pari a 153,4 milioni di euro.

 

Paolo Gallo, Amministratore Delegato di Italgas, ha così commentato:

Le performance del primo semestre 2020 dimostrano la capacità di Italgas di reagire di fronte a situazioni eccezionali – come quelle che stiamo vivendo a causa del Covid-19 – continuando a produrre solidi risultati. Nonostante la nuova regolazione tariffaria in vigore dal 1° gennaio, abbiamo conseguito un EBITDA di 462,7 milioni, in crescita di quasi il 7% rispetto allo scorso anno, e un utile netto di Gruppo di 153,4 milioni, la cui leggera flessione rispetto allo stesso periodo del 2019 è attribuibile ai pesanti effetti economici della nuova regolazione mitigati da tutte le azioni messe in campo dalla Società.

I nostri investimenti si confermano in crescita attestandosi attorno ai 370 milioni di euro, la gran parte dei quali concentrati sulla trasformazione digitale e sul continuo sviluppo e rinnovamento delle reti. Grazie alla trasformazione digitale realizzata negli ultimi tre anni ed al grande impegno delle nostre persone, abbiamo garantito la sicurezza e la continuità del servizio durante il lungo lockdown e siamo riusciti a far ripartire rapidamente i nostri cantieri a inizio maggio. Una ripartenza resa possibile dalle tecnologie proprietarie, sviluppate e realizzate in house nella nostra Digital Factory, come «WorkOnSite», l’applicazione che grazie all’intelligenza artificiale e all’operatività da remoto ha reso estremamente efficiente il processo di verifica della conformità dei cantieri e dei lavori. 

Completato il 65% dei 1.100 chilometri di reti del piano di metanizzazione della Sardegna, ci prepariamo a mettere in esercizio alcune di esse, con immediati benefici per l’economia e la popolazione locale; benefici sostenibili nel tempo che richiedono però, anche una chiara regolazione dell’intera filiera del gas e l’applicazione della perequazione tariffaria analogamente a quanto avviene nel resto dell’Italia.

Sul fronte delle gare Atem auspichiamo una grande accelerazione, per sbloccare, nel nostro settore, nuovi investimenti di oltre 3 miliardi l’anno, vitali per la ripartenza del Paese. Nell’attesa raccogliamo i frutti del lavoro svolto con l’assegnazione a Italgas anche dell’Atem Belluno e ci prepariamo ad avviare nei prossimi mesi – su questo e su gli altri Atem che ci sono stati assegnati – tutti gli investimenti da noi pianificati.

Innovazione tecnologica, digitalizzazione, efficienza, investimenti e vicinanza alle comunità caratterizzeranno ancor di più Italgas nei prossimi mesi.