Investing in Italgas
As the leading gas distribution operator in Italy and the third in Europe, we stand out for the solidity of our financial structure, our low-risk profile, the strength of our more 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 in a regulated market that offers great visibility on medium-term trends, and the investments planned for the next few years will allow us to strengthen ourselves further, positioning us as an aggregating pole in the consolidation process of the sector.
Leader in gas distribution in Italy
We have a market share of more than 35% (including subsidiaries) in gas distribution in Italy wide and geographically diversified network. Weoperate around 74,000 km of network, serve more than 1,800 municipalities under concession and have 7.7 million active meters.
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 system our central role in the Italian gas distribution, also through acquisitions, and to seize the best opportunities of future tenders in the area of 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 2022-2028. 4.5 billion euros are planned for the development and upgrade of the Italian gas distribution network. In detail, 1.5 billion euros (+100 million compared to the previous Plan) are dedicated to the continuation of the digital transformation programs of the network.
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 that are continuously and extensively monitored, used to collect big data on their operation, which will be processed using artificial intelligence in order to launch increasingly ambitious operational efficiency programmes.
Low risk profile
Italgas boasts a rating “investment grade (BBB+ by Fitch, Baa2 by Moody’s) thanks to a solid and efficient debt structure, almost entirely at fixed rates and an average cost of around 1%. Leverage (ratio of net debt to RAB) was just above 62% in 2021, and will remain just above this percentage throughout the period of the Strategic Plan 2022-2028.
Cash generation remains robust, allowing us to maintain rating indicators at levels consistent with a solid investment grade area and to fully cover planned investments, while also ensuring appropriate financial flexibility to support development and shareholder remuneration.
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. On 30 October 2020, we announced a new four-year policy (2020-23) to distribute a dividend equal to the greater of (i) the amount resulting from the FY2019 DPS (€0.256) increased by 4% per annum and (ii) the DPS equal to 65% of adjusted EPS.
Sustainability, part of our business model
Our history and our deep-rooted and widespread presence in the territory allow us to act as promoters of sustainable development, developing connections and synergies between our networks and the community. Our sustainability plan takes into account 10 of the 17 United Nations Sustainable Development Goals (SDGs) and includes 5 pillars: culture of sustainability; people at the centre; closeness to the territory; value for the market and customers; energy efficiency and environment.
Over the years, our commitment and achievements have been recognised by the financial community, resulting in excellent results in ESG ratings and indices. Since 2017 Italgas has been included in the FTSE4Good indices and recognised by CDP (Carbon Disclosure Project) as an international leader in the implementation of strategies and actions to combat climate change, maintaining its presence on the “Climate change B List”. In 2019, the company was also included for the first time in the Dow Jones Sustainability Index World, where it was also confirmed in 2020.
In addition, we have obtained UNI ISO 37001 certification: 2016 ‘Anti-Corruption‘ as the culmination of a complex process.