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Objectives, performance and forecasts

Here are the financial objectives of our Strategic Plan 2024-2030, the results achieved and the investments made.

Financial objectives of the 2024-2030 Strategic Plan

In euro target to 2028 target to 2030 (include scope tenders)
Revenue ~3.2 billion euros ~3.6 billion euros
EBITDA ~2.5 billion euros ~2.8 billion euros
EBIT ~1.6 billion euros ~1.8 billion euros
consolidated RAB 17.7 billion euros 19.2 billion euros
Ratio of net debt to RAB 65% 62%

Objectives foreseen by the previous plan and results already achieved

Investments

The strategic objectives of the 2023-29 plan

  • € 3.0 billion for the repurposing, upgrade, maintenance and development of the existing infrastructure, in addition to the completion of the methane gasification of Sardinia and to finance acquisitions in gas distribution;
  • € 1.6 billion for the digitalization of networks and processes;
  • € 0.3 billion to fuel growth in Energy Efficiency;
  • € 0.4 billion for the development of the water business;
  • € 0.9 billion for development in the Greek market;
  • € 1.5 billion for gas tenders.

Results already achieved in 2023

In 2023, € 906.5 million of operational investments made. Investments concentrated on the network, with 965 km of new pipelines built. Smart meters installed in 2023: 413 thousand, including replacements. Substantially 100% of currently active smart meters.

Environmental performance

The strategic objectives of the 2023-29 plan

Reduce Scope 1 and 2 climate-altering emissions by 42%, Scope 3 supply chain emissions by 33% and net energy consumption by 33% by 2030, compared to 2020, at constant perimeter. Net Zero target by 2050.

Results already achieved in 2023

  • Scope 1 and 2 emissions: -6.7% vs 2022*.
  • Scope 3 supply chain emissions: -6.2% vs 2022*.
  • Net energy consumption: -11.6% vs 2022.

Financial structure

The strategic objectives of the 2023-29 plan

Thanks to the strong cash generation, ratings maintained in solid investment grade area. Net Debt/RAB ratio constantly 10%

Results already achieved in 2023

At end-2023, 92% of debt at fixed rate: limited exposure to interest rate volatility. Cost of debt at approximately 1.4%. Net Debt/RAB ratio: 65%.

Dividends

The strategic objectives of the 2023-29 plan

Dividend equal to the greater of:

  • the amount resulting from the DPS 2022 (0.317 euros) increased by 4% per year;
  • the DPS equivalent to 65% of adjusted earnings per share.

Results already achieved in 2023

Proposed 2023 dividend of 0.352 euros (+11% vs 2022), with significantly higher growth than the floor envisaged by the dividend policy.

Based on the positive results achieved in 2023 and in the first quarter of 2024, characterized by growth in the main economic indicators, we will continue to pursue our strategic objectives despite the uncertainty of the geopolitical and macroeconomic context.

With reference to the customer base/sales companies and their solvency, we recall that the rules for user access to the gas distribution service are established by ARERA and are regulated in the Network Code. At the moment, we do not detect any significant negative consequences on the collections expected from gas sales companies that could jeopardize our financial balance, as well as on the regularity of payments to counterparties.

With regard to the Russia-Ukraine conflict, we confirm that we do not have production activities or personnel located in Russia, in Ukraine or in countries geopolitically aligned with Russia, nor do we have commercial and/or financial relations with these countries.

With regard to the foreseeable evolution of management, for 2024 we expect technical investments of approximately 0.9 billion euros and adjusted revenues of approximately 1.8 billion euros, with an adjusted EBITDA of 1.32-1.35 billion euros and an adjusted EBIT of approximately 0.8 billion euros and net financial debt at the end of 2024 is expected to be approximately 6.6 billion euros*, with a resulting expected leverage of less than 64%.

*The expected debt for 2024 excludes financial leases pursuant to IFRS 16 2Regulated activities gas distribution