Investing in Italgas
As the leading gas distribution operator Italy and Greece, and the third in Europe, we stand out for the solidity of our financial structure, our low-risk profile, the strength of over than 180 years of history and our propensity for innovation.
Our company, which returned to listing on the FTSE MIB index of the Italian Stock Exchange on 7 November 2016 following its separation from Snam, has some solid competitive advantages that make us unique on the Italian scene. We operate mainly in a regulated business of gas distribution, in Italy and Greece. The status of regulated business guarantees a great visibility on medium-term trends, and thanks to the investments planned for the coming years, we will be able to continue to consolidate our leading position in this area.
Leader in gas distribution in Italy and Greece
We manage 81,592 km of gas distribution network, serve more than 2,000 municipalities under concession in Italy and Greece and have 7.96 million active meters. In Italy, our market share exceeds 33%, with a presence in practically all regions of the peninsula.
Ideal structure to seize new opportunities
With our focus on our core business, we have an unrivalled technical and managerial skills base and a solid capital structure, which will allow us to strengthen our central role in the Italian gas distribution system, seizing the opportunities offered by future scope tenders.
Clarity and visibility of the regulatory environment
Regulation in the gas distribution market allows us to count on predictable revenues and returns. Our revenues are mainly regulated: we can therefore realise our plans in a well-defined context.
Focus on innovation
Innovation and digital transformation are the first pillar of our Strategic Plan 2023-2029. EUR 4.6 billion are planned for the development and upgrade of the Italian gas distribution network. In detail, EUR 1.6 billion (about EUR 100 million more than in the previous Plan) are earmarked for the continuation of the network’s digital transformation programmes. In addition, EUR 0.9 billion is earmarked for the development of the distribution network in Greece to support of the country’s decarbonisation goals.
There can be no transition without digitisation. For us, this is not just an idea, but a compass that guides our actions and investment decisions. Digital transformation of the assets is the technical prerequisite for injecting and distributing renewable gases or their mixtures through our gas networks. The aim of this transformation is to create a new generation of infrastructures equipped for remote management.
Low risk profile
Italgas relies on an “investment grade” rating (BBB+ by Fitch, Baa2 by Moody’s) thanks to a solid and efficient debt structure, almost entirely at fixed rate and a competitive average cost of debt. During the entire period of the Strategic Plan 2023-2029, the Leverage (Net Debt on RAB ratio) remains at levels consistent with a solid investment grade area and cash generation allows us to fully cover planned investments, while also providing adequate financial flexibility to support development and shareholder returns. We also follow a well-structured approach in governing risks that may impact on value creation. In addition to having a dedicated function, Italgas applies to all companies a model for the identification, assessment management and control of risks.
Attractive return for investors
Our dividend policy reflects our commitment to providing shareholders with attractive, sustainable and continuously growing remuneration. The four-year policy, now extended to 2026, provides for the distribution of a dividend on 2023-2026 earnings equal to the greater of (i) the amount resulting from the FY2022 DPS (€ 0.317) increased by 4% per annum and (ii) the DPS equal to 65% of the adjusted EPS.
Sustainability, part of our business model
Italgas structured its 2023-2029 Sustainable Value Creation Plan with the objective to implement real economic, financial, environmental and social sustainability and to be able to create shared value. The Group has adopted an integrated business model, capable of employing all the capital it uses in its production processes (input capital) to achieve not only its strategic objectives but also to create value for all its stakeholders in the short, medium and long term. By doing so, Italgas is able to support the development of a virtuous circle, using such capital to generate positive impacts also for the communities and territories in which it operates. Over the years, our commitment and achievements have been recognised by the financial community.