Objectives and results
Objectives and results
Through a 7.9 billion euro investment program, strongly focused on digitalisation and energy transition, and energy, operational and financial efficiency strategies, the 2021-2027 strategic plan envisages ensuring Italgas’ growth while maintaining its solid financial structure.
Targets envisaged by the 2021 – 2027 Strategic Plan
|In euro||Targets to 2027 (including scope tenders)||2020 results|
|Revenue||2.1 billion euros||1.44 billion euros|
|EBITDA margin (%)||about 73%||approximately 73% (in adjusted terms)|
|Consolidated RAB||11.9 billion euros||EUR 7.4 billion for calculating 2020 tariffs and EUR 7.8 billion for calculating 2021 tariffs|
|Ratio of net debt to RAB||about 60%||about 61%|
Plan of actions and results already achieved
The strategic objectives of the 2021-2027 plan and the actions planned to achieve them
Total investments of €7.9 billion, of which €2.2 billion for gas tenders.
- 3.1 billion for investments in network repurposing.
- 1.4 billion € digitisation of networks and processes.
- 300 mln € in the completion of Sardinia’s methanisation project.
- 400 mln € in additional perimeter in gas distribution (M&A and related operational investments).
- 400 mln € in centralised activities, such as ICT and Real Estate.
- 200 million in new opportunities in the water sector, energy efficiency and gas sales in Sardinia.
A programme of continuous research into operational efficiencies, leveraging technological innovation and digitisation to achieve new levels of efficiency.
The expected benefits of the digitisation programme are €250 million over the plan period, including lower costs.
Maintaining a virtuous and efficient financial structure, with a focus on optimising the structure and cost of debt.
New dividend policy in the four-year period 2020-2023, with a dividend equal to the greater of (i) the amount resulting from the 2019 DPS (€0.256) increased by 4% per year and (ii) the DPS equivalent to 65% of adjusted earnings per share.
The results achieved to meet our strategic objectives of the 2021-2027 plan
In 2020, €777.5m in operating investments made despite lockdown restrictions (+5.1% vs 2019 and +106% vs 2016).
- Investments concentrated on the network, with 905 km of new pipelines built, 334 km of which in Sardinia.
- Smart meters installed in 2020: 1.22 mln including subsidiaries, with a cumulative total of 7.49 mln. 88% of Italgas’ total meter fleet is smart.
Adjusted operating costs at €362.4m in 2020: +€12m (+3.4%) vs 2019, despite a €30.7m impact from the consolidation of Toscana Energia. Net efficiencies thus amount to €20.5m.
At the end of 2020, 86.5% of the debt is fixed rate.
Cost of debt below 1%, at industry-leading levels, and limited exposure to interest rate volatility.
Proposed 2020 dividend of 27.7 euro cents (+8.2% vs. 2019), more than double the floor of the dividend policy.