Milan, 24 March 2017 – The Italgas Board of Directors, chaired by Lorenzo Bini Smaghi, met yesterday and approved the results for the financial year ended 31 December 2016. The Board also resolved to propose a dividend of €0.20 per share to the Shareholder Meeting.

Main data and events

Economic and financial highlights [1]:

  • Total revenue: €1,079 million
  • Adjusted Gross Operating Margin (EBITDA): €685 million
  • Adjusted operating profit (EBIT): €359 million
  • Adjusted net profit: €221 million
  • Adjusted net cash flow from operating activities: €499 million
  • Technical investments: €378 million
  • Net financial debt: €3,618 million

Operating highlights (including affiliates’ data):

  • Gas concessions: 1,582
  • Number of active meters: 7.4 million
  • Gas distribution network: ~65,000 Km

Significant events

  • Separation of Italgas Reti from Snam and admission to listing of Italgas shares on the Milan Stock Exchange on 7 November 2016
  • Total financial independence
    • New banking and institutional credit lines for €4.3 billion
    • Three bond issues in January and March 2017 totalling €2.15 billion, intended for the Bridge to Bond repayment;
  • Launch of the project for the simplification and reorganisation of operational activities.

Paolo Gallo, Chief Executive of Italgas, commented:

2016 was an important year for Italgas. With its return to the stock exchange, the company has embarked on a new chapter in its long and noteworthy history. The results achieved during the year are in line with expectations and we have successfully met all of the financial measures we set out at the time of the demerger. We delivered a solid operating performance and have already put in place actions to tackle the impact of the reduction in allowed returns and of costs relating to the separation of Snam. We generated an adjusted operating cash flow in 2016 of €499 million. This fully financed our technical investments of €378 million, which support the industrial base that will fuel our future growth. We have laid foundations for our strategy of generating value through sustainable and profitable growth, while preserving and enhancing the group’s capital structure.

Italgas Chairman Lorenzo Bini Smaghi highlighted the successful demerger and commented:

In light of the results we have achieved, we will propose a distribution of a dividend of €0.2 per share at the next Shareholders’ Meeting and confirm our commitment to maintain an attractive and sustainable remuneration policy for our shareholders.

[1] The main data refer to the “Consolidated Pro-forma” which, having been prepared for the sole purpose of giving an adequate representation of the economic and financial situation of the entire year for Italgas Group, shows the economic and financial figures for Italgas S.p.A. from the date of its foundation (1 June 2016) and from 1 January 2016 for Italgas Reti S.p.A. Napoletanagas S.p.A. and Acam Gas S.p.A. fully consolidated, as well as for Toscana Energia, Metano S. Angelo Lodigiano and Umbria Distribuzione, accounted for using the net equity method.