Why invest in italgas

Number 1 in gas distribution in Italy and third in Europe, Italgas is known for the solidity of its financial structure, low risk profile, its strength from over 180 years of history and its immense appetite for innovation.

 

Our company, which returned to listing on Borsa Italiana’s FTSE MIB index on 7 November 2016 after the separation from Snam, has a number of sound competitive advantages that make us unique in the Italian scenario. We operate in a regulated market that offers strong visibility in terms of medium-term trends, and the investments planned for the next few years will allow us to strengthen our position even more and become a focal point in the sector’s consolidation process. 

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Italian leader in gas distribution

We have a share of the market of over 34% (if associated companies are taken into account) for domestic gas distribution, with an extensive and geographically diversified network. We manage over 70,000 km of networks, serve more than 1,800 municipalities under concessions and have 7.56 million live meters.

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Ideal structure for seizing new opportunities

The Italian gas distribution market lies at the heart of a profound change that has led to a considerable decrease in the number of operators. The 2011 reform, which established 177 minimum geographical areas ("ATEM") based on which the new concessions should be awarded, is accelerating the concentration process.

We are already present in 114 ATEMs and, thanks to the strong focus on our core business, we have a pool of technical and managerial expertise without equal, as well as a sound capital structure that allows us to strengthen our role in the Italian gas industry, also through acquisitions, and to better leverage the opportunities of future gas tenders.

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Transparency and visibility in the regulatory context

Regulation of the gas distribution market means that we can count on predictable revenues and returns. Our revenues are 98% regulated: therefore we can organise and implement our plans in a well-defined context.


 

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Focus on innovation

The innovation and digital transformation of our company represent the first guideline of our new Strategic Plan 2019-2025. The financial solidity of the group will allow us to sustain by 2025 investments for 1 billion euros to install smart meters, digitize assets and processes and develop new innovative projects through the Digital Factory, which will become the real engine for the digitalization of business processes.

Digitisation of the networks and corporate processes is at the heart of Italgas commitments in the coming years. Translated into firm action, this means completing the smart meters installation plan and installation of the sensors system across the entire network: an innovation process that will make Italgas a “frontier company”, leader at European level.

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Low risk profile

We have an investment grade rating (Fitch BBB+, Moody’s Baa2). Our debt structure is solid and efficient, with a fixed-rate quota that stood currently at 87% and with an average borrowing cost just above 1%. Including affiliates companies, leverage (the net debt/RAB ratio) was slightly below 60% at the end of 2018, and will remain at these levels for the entire period of the 2019-2025 Strategic Plan.

Over the period of the 2019-2025 Strategic Plan we will maintain the robust cash generation, which will enable us to maintain the rating indicators at levels consistent with a solid investment grade area and to fully cover both planned investments and dividends, also guaranteeing an appropriate financial flexibility to support business development and remuneration of shareholders.

We have also adopted a well-structured approach to managing the risks that can have an impact on creation of value. In addition to a dedicated function, Italgas applies a model to identify, assess, manage and control risks to all its companies.
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Appealing return for investors

For the years 2018-2019-2020 will be distributed a dividend equal to the highest of the amount resulting from the 2017 DPS plus 4% per annum, and the DPS equivalent to 60% of the consolidated net profit.
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Sustainability, part of our business model

Our history and deep-rooted, extensive presence throughout the country mean we can put ourselves forward as promoters of sustainable growth, the result of connections and synergies between the networks and the community.
Our 2018-2023 sustainability plan considers 9 of the 17 Objectives for Sustainable Development (SDGs) of the United Nations and foresees 5 pillars: a culture of sustainability; the people in the center; proximity to the territory; value for the market and customers; energy efficiency and the environment.


Again in 2018, Italgas was included in the FTSE4Good series of indices, in the DJSI World Enlarged index and was identified by the CDP (Carbon Disclosure Project) as among the best companies at international level for the strategies and actions adopted to combat climate change, achieving two further recognitions: entry for the first time in the ECPI Euro ESG Equity and ECPI World ESG Equity indices (EE assessment) and improved its rating (from A to AA) on the MSCI indices, without forgetting the UNI ISO 37001: 2016 “anticorruption” certification as the crowning achievement following a complex process.

 

ultimo aggiornamento 01 July 2020 09:01 UTC