Italgas: the Board of Directors approves the renewal of the EMTN programme

Milan, 29 September 2023 – 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 6.5 billion euro.

As of today, under the current EMTN Programme the notes outstanding are in nominal amount equal to 4.98 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.

Through the EMTN Programme the Company will still be enabled to issue also Sustainability-Linked Notes, in line with Italgas’ strategy of achieving the sustainability targets disclosed to the market during the Strategic Plan 2023-2029 presentation.

Italgas: consolidated results as at 30 june 2023 approved

Milan, 25 July 2023 – The Italgas’ Board of Directors, chaired by Benedetta Navarra, met today and approved the consolidated results for the first half of 2023.

Key figures1

Consolidated economic and financial highlights

  • Total revenues: 931.8 million (+31.7%)
  • EBITDA: 607.0 million (+18.3%)
  • EBIT: 358.8 million (+21.2%)
  • Adjusted net profit attributable to the Group: 213.2 million (+14.9%)
  • Technical investments: 398.2 million
  • Cash flow from operating activities: 319.6 million
  • Net financial debt (excluding the effects pursuant to IFRS 16)2: 6,230.7 million
  • Net financial debt3: 6,314.8 million

The item expresses net financial debt excluding the effects of IFRS 16 payables and the Italgas NewCo shareholder loan, inclusive of interest.

The item does not include liabilities for € 35.5 million consisting of the pro-rata share of the shareholder loan, including interest, to Italgas NewCo S.p.A, subordinated and convertible into shares, subscribed by the shareholder Phaeton Holding SA, deemed not to be financial debt.

Operating highlights4

  • Municipalities in gas distribution concessions: 2,045
  • Number of active meters: 7,959,758
  • Gas distribution network: 81,582 km

Sustainability highlights

  • 59.3 103 tCO2 eq Scope 1 and 2 (+8.4%)
  • Net energy consumption: 257.2 TJ (-14.7%)
  • 53,752 km of network inspected (+12.8%)
  • Fugitive emissions/km of network inspected: 50.16 smc/km (+2.3%)

In the first six months of 2023, Italgas Group’s operational activities aimed at achieving the goals of digital network transformation, the main enabler of the energy transition, and the targets set in the Strategic Plan 2023-2029 and the Sustainable Value Creation Plan continued. Italgas’ distribution networks – smart, digital and flexible – are ready to accommodate renewable gases, such as biomethane and synthetic methane, and to support a safe and cost-competitive green transition for industries and citizens.

During the first six months of the year, 398.2 million euros of investments were made and those investments were dedicated mainly to the extension, digital transformation and repurposing of networks. More specifically, 478 kilometers of new pipelines were laid in the first half of 2023. A significant contribution was dedicated to Greece, where were carried out activities worth an investment of about 50 million euros, for the completion of 311 kilometers of new pipelines, more than half of which related to the methanization plan in DEDA’s sphere of responsibility.

EBITDA for the first six months of the year amounted to 607.0 million euros (+18.3% compared to June 30, 2022) and net income attributable to the Group was 213.2 million euros (+14.9% compared to June 30, 2022).

With reference to sustainability goals, the significant contribution of the various innovation, digitisation and energy efficiency initiatives, both in the industrial and civil sectors, as well as the training activities aimed at informing employees on energy efficiency issues, have allowed the Group to continue on its path towards reducing net energy consumption (-14.7%) and related emissions (-12.0%), even against the inclusion of the DEPA Infrastructure Group’s contributions related to 2023.

Paolo Gallo, CEO of Italgas, commented:

The first half of 2023 shows a trend in continuity with past years, under the banner of steady growth and performance of excellence at the service of development in the countries where Italgas is present and operates.

The results achieved confirm the centrality of gas networks – smart, digital and flexible – and the Italgas Group in achieving the REPowerEU targets and, through them, a safe and competitive ecological transition.

All economic indicators showed double-digit growth with EBITDA reporting an increase of 18.3% to more than 600 million euros and Group Net Income of 213.2 million euros, up 14.9 % compared to the first half of last year, thanks in part to the development of activities in Greece and those in the field of energy efficiency.

With nearly 400 million euros invested in the first half of the year, the Company is confirmed as one of the leading industrial entities in terms of its ability to invest and ground projects that can help improve people’s quality of life. We have laid the foundations to play our part in the management of water services as well: by taking advantage of the technologies developed for gas and applying them to this sector, it will be possible to achieve immediate results in terms of efficiency and cost-effectiveness of the service for territories and communities.

The goal of carbon neutrality to 2050 is achievable through progressive reductions in net energy consumption and Scope 1, 2, and 3 emissions, and the results we achieve quarter after quarter prove it. Not only that. To actively promote further change, we have also introduced new targets referring to gender pay equity and the development of skills and enhancement of resources: actions that are indispensable for continuing to focus on innovation and putting it to value for the entire Group.


1 Data as of June 2023 includes the Greek DEPA Infrastructure group.

2 The item expresses net financial debt excluding the effects of IFRS 16 payables and the Italgas NewCo shareholder loan, inclusive of interest.

3 The item does not include liabilities for € 35.5 million consisting of the pro-rata share of the shareholder loan, including interest, to Italgas NewCo S.p.A, subordinated and convertible into shares, subscribed by the shareholder Phaeton Holding SA, deemed not to be financial debt.

4 Data as of June 2023 includes the Greek DEPA Infrastructure group

Italgas: 2023 return for Greek DSOs set at 8.57%

Milan, 13 July 2023 – Italgas informs that RAEWW, the Greek Regulatory Authority for Energy, Waste, and Water Regulation, has disclosed the return (WACC – Weighted Average Cost of Capital) on the RAB (Regulated Asset Base) for 2023 for EDA Thess, EDA Attikis and DEDA (Italgas’ Greek DSOs), setting it at 8.57% (compared to 7.03% in 2022).

The decision was taken in accordance with the provisions of article 260 of Law 5037/2023.

The full document in its original language from RAEWW is available at the link https://www.rae.gr/apofaseis_/67961/

Changes to Italgas’ calendar of corporate events

Change of date of the Press Release relating to the results as at June 30th, 2023

Milan, 19 June 2023 – Italgas announces that the publication of the press release relating to the approval of the results as at June 30th, 2023 has been moved forward from July 26th to July 25th 2023, following its approval by the Board of Directors.

Consequently, the conference call to present the results to institutional investors and financial analysts will be held in the afternoon of July 25th 2023.

Italgas presents the Strategic Plan 2023-2029

Investments of € 7.8 billion for the development and digital transformation of assets, strengthening in Greece, and becoming a key player in the water distribution and energy efficiency sectors, while continuing to play a leading role in achieving EU climate goals. Dividend policy updated and extended until 2026.

London, June 15, 2023 – Italgas CEO, Paolo Gallo, presents today to analysts and investors the Group’s Strategic Plan for the period 2023-2029, approved today by the Company’s Board of Directors chaired by Benedetta Navarra.

The new plan includes total investments of €7.8 billion, mainly dedicated to interventions for asset development and gas distribution activities in Italy and Greece, energy efficiency activities, and water sector development. In this sector, following the recently announced acquisition agreements of Veolia’s assets, the Group expects to seize additional growth opportunities.

The 2023-2029 plan also confirms a strong commitment to creating a fully digitized network, ready for the distribution of renewable gas and therefore serving the ecological transition.

In line with the strategic choices made in recent years by the Group, the Plan aims to promote the ecological transition while ensuring energy security and cost competitiveness of energy, benefiting both companies and households.

The Group can rely on a solid and efficient financial structure – built in previous years – despite a more volatile macroeconomic scenario. Thanks to this financial structure, the new dividend policy, extended until 2026, continues to provide shareholders with the opportunity to benefit from growth through a payout ratio of 65%, while also offering protection with a minimum annual growth guarantee of 4%1.

The plan revolves around ESG principles and addresses sustainability challenges by confirming net energy consumption reduction targets and Scope 1, 2, and 3 emissions reduction targets for the entire Group, including Depa Infrastructure, by 2028 and 2030, in line with the carbon neutrality target by 2050. To further drive change, it also introduces new targets related to gender pay equity and the development and valorization of skills and resources.

Highlight 

  • Total investments amounting to €7.8 billion.
  • €4.6 billion for the development, digitalization, and repurposing of the Italian gas distribution network.
  • €0.9 billion for the development of the distribution network in Greece to support the country’s decarbonization goals.
  • €0.8 billion to accelerate growth in the water and energy efficiency sectors.
  • €1.5 billion for Atem tenders.
  • Optimization of the financial structure, maintaining solid investment-grade ratios.
  • Dividend policy: Extension of the dividend policy until 2026, with a confirmed payout ratio of 65% and a 4% DPS growth floor, now based on the 2022 figures.
  • Goals for reducing Scope 1 and Scope 2 greenhouse gas emissions by 34% by 2028 and 42% by 2030, Scope 3 (supply chain) emissions by 30% by 2028 and 33% by 2030, and energy consumption by 27% by 2028 and 33% by 2030 (baseline 20202).
  • “Net Zero” target by 2050.
  • Strong focus on the people driving the ecological transition, with an emphasis on training and promoting diversity, equal opportunities, and inclusion

Italgas CEO, Paolo Gallo, stated:

 Since the outbreak of the war in Ukraine, the EU has been grappling with a challenging equation that sees the ecological transition as an essential goal but not at any cost. It is necessary to ensure energy security and an appropriate level of energy costs for families and businesses.

 The vision and strategic choices made in recent years position Italgas to significantly contribute to this solution through digitalized, flexible, and intelligent networks capable of accommodating renewable gas. These networks enable source diversification, consumption decarbonization, and greater efficiency and cost-effectiveness.

With €7.8 billion, the Group reaffirms its position among the leading industrial entities capable of leveraging its design, investment, and value creation capabilities to serve the sustainable development objectives of the countries in which it operates.

The largest portion of investments is once again dedicated to the development, digital transformation, and repurposing of the gas distribution network. After twenty years, this network now extends to Greece, where the application of Italgas’ most advanced technologies in the sector will enhance the efficiency and quality of gas distribution services and the work of Depa Infrastructure Group’s personnel.

Water distribution and energy efficiency represent two important sectors for the Group’s diversification and development. With €800 million, we aim to become a benchmark player in these sectors, leveraging the technologies developed for gas. The digitalization of water networks and energy efficiency are drivers capable of delivering more efficient services, reducing losses, and generating wealth for communities and regions.

Digitalization, decarbonization, circular economy, training, diversity, and inclusion remain strategic factors for achieving our growth objectives. The results will depend on our ability to continue betting on innovation and leveraging it through our people.


1Compared to the 2022 dividend.

2Calculated on the entire Group perimeter.

Italgas postpones the Board of Directors meeting for the approval of the 2023-2029 strategic plan

Milan, June 12, 2023 – Considering the national mourning declared for June 14th, 2023 following the passing of President Silvio Berlusconi, Italgas informs that the Board of Directors meeting scheduled for June 13, aimed at approving the 2023-2029 Strategic Plan, has been postponed to June 15.

Consequently, the presentation of the Strategic Plan to the financial community will also take place on the same day, June 15th 2023.


Italgas posticipa il Consiglio di Amministrazione per l’approvazione del piano strategico 2023-2029

Milano, 12 giugno 2023 – In considerazione del lutto nazionale proclamato per il 14 giugno, Italgas informa che il Consiglio di Amministrazione convocato il 13 giugno per l’approvazione del Piano Strategico 2023-2029 è stato rinviato al 15 giugno.

Conseguentemente, anche la presentazione alla comunità finanziaria del Piano Strategico avverrà nella stessa data, 15 giugno 2023.

Italgas: significant strengthening in the water sector thanks to the agreement reached with Veolia for the acquisition of stakes of three companies in the regions of Lazio, Campania and Sicily

Milan, June 9, 2023 – Italgas and Veolia signed today the sale and purchase agreement of the stakes held by the Veolia Group in some companies active in the water sector in the regions of Lazio, Campania and Sicily, following the negotiations announced in recent months. The closing of the transaction is subject to the fulfillment of certain conditions precedent, including the involvement or approval by the Public Bodies which awarded the water service concession.

The transaction is part of the broader strategy outlined by Italgas, aiming at strengthening the Group presence in the water sector.

We have taken an important step towards becoming a key player also in the water sector – commented Italgas CEO Paolo Gallo – A strategic objective to which we aim with conviction, in the knowledge that we can create value for the country by borrowing the skills and cutting-edge technologies developed in the gas sector. The digital transformation of networks and sustainable energy efficiency are, in fact, drivers capable of significantly reducing water losses, making the service more efficient and returning wealth to communities and territories”.

“Veolia will remain active in the water market through technological services and advanced solutions – commented Emanuela Trentin, CEO Siram (Gruppo Veolia) – also contributing to energy security and decarbonisation to meet the country’s significant demand for energy efficiency and for the acceleration in local and decarbonised energy production”.

Specifically, the transaction includes the acquisition by Italgas of the Veolia Group’s stakes in the following companies:

  • 100% of Acqua S.r.l., which in turn directly holds 98.7% of Idrosicilia S.p.A. and, indirectly, 75% of the equity of Siciliacque S.p.A;
  • 100% of Idrolatina S.r.l., which in turn holds about 49% of Acqualatina S.p.A;
  • 9% of Acqua Campania S.p.A.

The holding companies Acqua, Idrosicilia and Idrolatina hold the stakes in the operational companies Siciliacque and Acqualatina.

Specifically:

Siciliacque operates under concession for the collection, storage, potabilization and adduction service in the Sicily Region with about 2,000 km of adduction network and, in 2021, had €86 million in revenues. The service covers more than 30% of the regional population.

Acqualatina manages the Integrated Water Service in ATO (Optimal Territorial Area) 4-Lazio Meridionale, which includes 38 municipalities and 550,000 inhabitants. In 2021, it had €138 million in revenues.

Acqua Campania operates in the Acquedotto Campania Occidentale under concession from the Campania Region. The operational activities of the company are the collection, potabilization, adduction and transportation of drinking water serving water distribution companies, for about 4 million inhabitants. In 2021, it had €92 million in revenues.

For the acquisition of the above-mentioned stakes, Italgas will recognize the Veolia Group a total of approximately €115 million (in terms of equity value), partially depending upon certain targets of the operational companies.

Italgas: 500 million euros fixed rate bond issue successfully completed

Milan, 1 June 2023 – Today Italgas SpA (rating BBB+, stable outlook, by Fitch and Baa2, negative outlook, by Moody’s) successfully priced a new bond issue, due June 2032, at fixed rate and for an amount of 500 million euros, annual coupon of 4.125%, under its EMTN Programme (Euro Medium Term Notes) established in 2016 and renewed by resolution of the Board of Directors on September 15th, 2022.

The transaction has attracted almost 1.6 billion euros of demand from a high quality and geographically diversified investor base.

In line with its strategic targets, the Company took the opportunity to carry out a pre-funding exercise of future financial needs, while extending the average duration of the bond portfolio.

Joint Bookrunners of the placement, restricted to institutional investors only, were Banco Santander S.A., BNP Paribas, J.P. Morgan Securities plc, Intesa Sanpaolo S.p.A., Mediobanca S.p.A, Société Générale and Unicredit Bank AG acted as Dealer Managers.

The bond will be listed on the Luxembourg Stock Exchange.

Details of the note are as follows:

Amount: 500 million euros

Maturity: 8 June 2032

Annual coupon: 4.125%

Issue price: 98.746%

Italgas launches a new fixed rate bond issue with 9-years maturity, expected nominal amount 500 million Euros

Milan, 1 June 2023 – Italgas S.p.A. (rating BBB+ by Fitch, Baa2 by Moody’s) has launched this morning a new fixed rate bond issue, with maturity 9 years, for an expected amount of 500 million Euros.

Joint Bookrunners of the placement, restricted to institutional investors only, are Banco Santander S.A., BNP Paribas, J.P. Morgan Securities plc, Intesa Sanpaolo S.p.A., Mediobanca S.p.A, Société Générale and Unicredit Bank AG.

The transaction is to be intended as a pre-funding of the Group’s financial needs and is part of Italgas’ strategy to optimize its debt structure and extend its financial maturity profile.

Italgas: Note related to the offer presented to Veolia.

Milan, May 31st, 2023 – In relation to the potential acquisition, announced last March 14th, of the stakes held by the Veolia Group in some companies active in water service in the regions of Lazio, Campania, and Sicily, Italgas confirms that it has submitted a binding offer in the context of the ongoing negotiations.

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