Tag: Financial

Milan, 29 January 2024  – Italgas announces the financial calendar and the dates of the publication of its 2024 financial results as approved by the Board of Directors:

Integrated Annual Report and draft financial statements at 31 December 2023; Dividend proposal for 2023; Report on Corporate Governance and Ownership Structure 2023; 2024 Compensation Report; Call of Shareholders’ Meeting.	Board of Directors approval Press release and Conference call*	March 12, 2024
Financial statements at 2023; Resolution on the distribution of 2023 profits.	Shareholders’ Meeting Press release**	May 6, 2024
Interim report on operations as at 31 March 2024.	Board of Directors approval Press release and Conference call*	May 13, 2024
Strategic Plan 2024-2030.	Board of Directors approval Press release and Strategy Presentation***	June 11, 2024 June 12, 2024
Half-year financial report H1 2024.	Board of Directors approval Press release and Conference call*	July 24, 2024
Interim report on operations as at 30 September 2024.	Board of Directors approval Press release and Conference call*	October 24, 2024

* Press release will be issued at the end of the Board of Directors’ meeting and the presentation of the results to the community that same day.

** Press release will be issued at the end of the Shareholders’ Meeting.

*** Press release will be issued in the morning (non-trading hours); Conference Call for the presentation of the Strategic Plan to the financial Community that same day.

 

The following dates will be disclosed to the market:

– Dividend payment for 2023 fiscal year: 22 May 2024 (record date 21 May 2024), ex-dividend date: 20 May 2024;

– road-show to illustrate the objectives set in the 2024-2030 Strategic Plan to institutional investors and financial analysts, starting in June.

Any changes to the above dates will be promptly reported.

Milan, November 21^st, 2023 – The rating agency Moody’s has affirmed today Italgas S.p.A LongTerm Issuer rating at ‘Baa2’, revising the Outlook to Stable from Negative.

The rating action follows the outlook change to Stable from Negative on the Italian government’s Baa3 debt rating, carried out by Moody’s last 17 November 2023.

Milan, 20 November 2023 – The rating agency Fitch has affirmed today Italgas S.p.A long-term issuer default rating at ‘BBB+’, with Stable Outlook.

The rating affirmation reflects the risk profile of the gas distribution business in the Italian and Greek markets, the latter being smaller in size but experiencing strong expansion, along with the growing ambitions of the Group in Italian water sector regulated activities.

The rating agency highlights the strength of the Italian regulatory framework, the robustness of the 2023-2029 Strategic Plan, and the consistency of indebtedness levels with the metrics underlying the rating assigned.

Milan, 10 November 2023 – Moody’s Investors Service (Moody’s) affirmed today Italgas S.p.A Long-Term Issuer Rating at ‘Baa2’, Negative Outlook that reflects Italgas’ exposure to the Italian sovereign credit.

 

The rating affirmation is based on the strong track record of operational efficiencies and on the solid financial position, as well as of the low risk profile of the gas distribution business, thus allowing Italgas to benefit from solid cash flows derived from regulated activities in Italy and Greece.

 

Furthermore, Moody’s highlights the progressive implementation of the new 7.8 billion euro investment plan expected in 2023-2029 and the Company’s solid liquidity profile, combined with the strong push for technological innovation and network digitalization, will provide Italgas with a competitive advantage in the upcoming tenders.

Milan, 25 October 2023 – Italgas’ Board of Directors, chaired by Benedetta Navarra, met yesterday and approved the consolidated results of the first nine months and third quarter of 2023 (unaudited).

Key figures

Consolidated economic and financial highlight

• Total revenues: € 1,369.8 million (+26.0%)
• EBITDA: € 910.5 million (+15.9%)
• EBIT: € 536.7 million (+18.0%)
• Adjusted net profit attributable to the Group: € 316.7 million (+10.8%)
• Technical investments: € 589.1 million
• Cash flow from operating activities: € 398.1 million (€ 576.8 million +14.3% net of ESCo flow)
• Net financial debt (excluding the effects pursuant to IFRS 16): € 6,411.8 million
• Net financial debt: € 6,492.3 million

Operating Highlight¹

• Municipalities in gas distribution concessions: 2,050
• Number of active meters: 7.959 millions
• Gas distribution network: 81,760 Km

Sustainability highlights

• 4 10³ tCO₂ eq Scope 1 and 2 (+6.4%)
• Net energy consumption: 320.0 TJ (-14.1%)
• 81,824 km of network inspected (+23.7%)
• Fugitive emissions/km of network inspected: 64.7 Sm3/km (-10.8%)

In a context of high international tensions, with the inevitable impact on energy costs and financial markets, Italgas has maintained its uninterrupted growth trajectory for 27 consecutive quarters.

The first nine months of 2023 have witnessed an intensified operational activity within the Group, aimed at achieving the targets set in the 2023-2029 Strategic Plan and the Sustainable Value Creation Plan, with a particular focus on the digital transformation objectives of the network, a key enabler of the energy transition.

In line with the 2023-2029 strategic plan, but ahead of the projected timeline, on September 30th, the corporate simplification of the Depa Infrastructure Group was successfully completed. Specifically, the merger by absorption of EDA Thess and EDA Attikis into DEDA S.A. was finalized. As a result of this merger, DEDA is entrusted with the development and management of the gas distribution service in all regions of Greece where the Depa Infrastructure Group operates. Currently, the company manages approximately 7,700 kilometers of network and serves over half a million customers.

Meanwhile, the acquisition that was announced on March 14th by Veolia Environnement S.A. of the business division holding water concessions in Italy has now been successfully finalized. With a service reach extending to around 6.2 million individuals directly and indirectly, constituting 10% of Italy’s population, this development situates NEPTA, the newly established company through the integration of these operations, as a significant player in the sector. The main developmental focus revolves around the digital transformation of water infrastructure, with the aim of reducing network losses and elevating service quality standards.

In the first nine months of the year, € 589 million of investments were made, mainly for the extension, digital transformation and repurposing of networks. More specifically, 679 kilometres of new gas pipelines were laid.

The contribution from activities in Greece has been significant, where an investment of approximately 74 million euros has led to the construction of 435 kilometres of new gas pipelines.

The EBITDA for the first nine months of 2023 amounted to € 910.5 million (+15.9% compared to 30 September 2022) and adjusted net profit attributable to the Group was € 316.7 million (+10.8% compared to 30 September 2022).

Cash flow from operating activities, net of the ESCo contribution, amounted to 576.8 million euros and fully offset investments related to gas distribution.

With reference to sustainability goals, the significant contribution of the various innovation, digitisation and energy efficiency initiatives, both in the industrial and civil sectors, as well as the training activities aimed at employees on energy efficiency issues, have allowed the Group to continue on its path towards reducing net energy consumption (-14.1%) as well as the ratio of fugitive emissions to kilometres of inspected network (-10.8%), even against the inclusion of the DEPA Infrastructure Group’s contributions related to 2023.

Paolo Gallo, CEO of Italgas, commented:

“In the first nine months of 2023, the Italgas Group achieved strong and valuable performance, allowing continued growth even in an unstable socio-economic context due to the ongoing international tensions.

This success can be attributed to several factors: our vision that reaffirmed the pivotal role of gas distribution networks – smart, digital, and flexible – in a secure, sustainable, and competitive ecological transition. Furthermore, significant milestones already achieved in Greece, including the merger of three DSOs into a single operator, and in the water sector, with the successful completion of the acquisition of Veolia concessions.

All economic indicators have displayed double-digit growth, with EBITDA showing an increase of 15.9%, surpassing 900 million euros, and a Group Adjusted Net Profit of 316.7 million euros, up by 10.8% compared to the same period last year.

 

With nearly 600 million euros invested in the first nine months, the company intensified its efforts to expand and digitally transform gas networks, both in Italy and Greece, further promoting their evolution as a strategic driver to produce renewable gases like biomethane, synthetic methane, and hydrogen.

 

Digitization, decarbonization, circular economy, and training continue to be strategic factors for achieving our growth objectives. These targets will depend on our ability to continually raise the bar of innovation, leveraging our most valuable resource, our people”.

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¹ The figures as at 30 September 2023 also include affiliates.

Investments of € 7.8 billion for the development and digital transformation of assets, strengthening in Greece, and becoming a key player in the water distribution and energy efficiency sectors, while continuing to play a leading role in achieving EU climate goals. Dividend policy updated and extended until 2026.

London, June 15, 2023 – Italgas CEO, Paolo Gallo, presents today to analysts and investors the Group’s Strategic Plan for the period 2023-2029, approved today by the Company’s Board of Directors chaired by Benedetta Navarra.

The new plan includes total investments of €7.8 billion, mainly dedicated to interventions for asset development and gas distribution activities in Italy and Greece, energy efficiency activities, and water sector development. In this sector, following the recently announced acquisition agreements of Veolia’s assets, the Group expects to seize additional growth opportunities.

The 2023-2029 plan also confirms a strong commitment to creating a fully digitized network, ready for the distribution of renewable gas and therefore serving the ecological transition.

In line with the strategic choices made in recent years by the Group, the Plan aims to promote the ecological transition while ensuring energy security and cost competitiveness of energy, benefiting both companies and households.

The Group can rely on a solid and efficient financial structure – built in previous years – despite a more volatile macroeconomic scenario. Thanks to this financial structure, the new dividend policy, extended until 2026, continues to provide shareholders with the opportunity to benefit from growth through a payout ratio of 65%, while also offering protection with a minimum annual growth guarantee of 4%¹.

The plan revolves around ESG principles and addresses sustainability challenges by confirming net energy consumption reduction targets and Scope 1, 2, and 3 emissions reduction targets for the entire Group, including Depa Infrastructure, by 2028 and 2030, in line with the carbon neutrality target by 2050. To further drive change, it also introduces new targets related to gender pay equity and the development and valorization of skills and resources.

Highlight 

• Total investments amounting to €7.8 billion.
• €4.6 billion for the development, digitalization, and repurposing of the Italian gas distribution network.
• €0.9 billion for the development of the distribution network in Greece to support the country’s decarbonization goals.
• €0.8 billion to accelerate growth in the water and energy efficiency sectors.
• €1.5 billion for Atem tenders.
• Optimization of the financial structure, maintaining solid investment-grade ratios.
• Dividend policy: Extension of the dividend policy until 2026, with a confirmed payout ratio of 65% and a 4% DPS growth floor, now based on the 2022 figures.
• Goals for reducing Scope 1 and Scope 2 greenhouse gas emissions by 34% by 2028 and 42% by 2030, Scope 3 (supply chain) emissions by 30% by 2028 and 33% by 2030, and energy consumption by 27% by 2028 and 33% by 2030 (baseline 2020²).
• “Net Zero” target by 2050.
• Strong focus on the people driving the ecological transition, with an emphasis on training and promoting diversity, equal opportunities, and inclusion

Italgas CEO, Paolo Gallo, stated:

 Since the outbreak of the war in Ukraine, the EU has been grappling with a challenging equation that sees the ecological transition as an essential goal but not at any cost. It is necessary to ensure energy security and an appropriate level of energy costs for families and businesses.

 The vision and strategic choices made in recent years position Italgas to significantly contribute to this solution through digitalized, flexible, and intelligent networks capable of accommodating renewable gas. These networks enable source diversification, consumption decarbonization, and greater efficiency and cost-effectiveness.

With €7.8 billion, the Group reaffirms its position among the leading industrial entities capable of leveraging its design, investment, and value creation capabilities to serve the sustainable development objectives of the countries in which it operates.

The largest portion of investments is once again dedicated to the development, digital transformation, and repurposing of the gas distribution network. After twenty years, this network now extends to Greece, where the application of Italgas’ most advanced technologies in the sector will enhance the efficiency and quality of gas distribution services and the work of Depa Infrastructure Group’s personnel.

Water distribution and energy efficiency represent two important sectors for the Group’s diversification and development. With €800 million, we aim to become a benchmark player in these sectors, leveraging the technologies developed for gas. The digitalization of water networks and energy efficiency are drivers capable of delivering more efficient services, reducing losses, and generating wealth for communities and regions.

Digitalization, decarbonization, circular economy, training, diversity, and inclusion remain strategic factors for achieving our growth objectives. The results will depend on our ability to continue betting on innovation and leveraging it through our people.

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¹Compared to the 2022 dividend.

²Calculated on the entire Group perimeter.

Milan, June 12, 2023 – Considering the national mourning declared for June 14th, 2023 following the passing of President Silvio Berlusconi, Italgas informs that the Board of Directors meeting scheduled for June 13, aimed at approving the 2023-2029 Strategic Plan, has been postponed to June 15.

Consequently, the presentation of the Strategic Plan to the financial community will also take place on the same day, June 15^th 2023.

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Italgas posticipa il Consiglio di Amministrazione per l’approvazione del piano strategico 2023-2029

Milano, 12 giugno 2023 – In considerazione del lutto nazionale proclamato per il 14 giugno, Italgas informa che il Consiglio di Amministrazione convocato il 13 giugno per l’approvazione del Piano Strategico 2023-2029 è stato rinviato al 15 giugno.

Conseguentemente, anche la presentazione alla comunità finanziaria del Piano Strategico avverrà nella stessa data, 15 giugno 2023.

Milan, 4 May 2023 – Italgas’ Board of Directors, which met today chaired by Benedetta Navarra, having heard the favourable opinion of the Board of Statutory Auditors, resolved to appoint Gianfranco Amoroso as the Officer responsible for the preparation of financial reports pursuant to Article 154-bis of Legislative Decree 59/98, to replace Giovanni Mercante, who has been appointed as Chief Financial Officer of the Greek subsidiary DEPA Infrastructure.

Gianfranco Amoroso has been Chief Financial Officer of Italgas since 1 June 2021.

To date, as far as the Company is aware, Gianfranco Amoroso holds 56,592 shares in Italgas (equal to approximately 0.006% of the share capital) and Giovanni Mercante holds 21,917 shares in Italgas (equal to approximately 0.002% of the share capital).

The curriculum vitae of Gianfranco Amoroso is available on the Company website at https://www.italgas.it/en/gianfranco-amoroso/ .

Milan, 4 May 2023 – The Italgas’ Board of Directors, which met today chaired by Benedetta Navarra, has approved the consolidated results as at 31 March 2023 (unaudited).

Key figures

Consolidated economic and financial highlights:

• Total revenues: € 479.9 million (+35.6%)
• Gross operating margin (EBITDA): € 297.2 million (+18.9%)
• Operating profit (EBIT): € 172.5 million (+21.6%)
• Net profit attributable to the Group: € 103.6 million (+16.5%)
• Technical investments: € 175.1 million
• Cash flow from operating activities: € 107.2 million
• Net financial debt (excluding the effects pursuant to IFRS 16)¹: € 6,016.8 million
• Net financial debt ²: € 6,089.5 million

Operating highlights (including affiliates):

• Municipalities in gas distribution concessions: 2,045
• Number of active meters: 7.961 million
• Gas distribution network: 81,401 Km

Sustainability highlights:

• 24.7 10³ tCO₂ eq Scope 1 and 2 (-6.4%)
• Net energy consumption: 172.3 TJ (-17.3%)
• 25,789 km of network inspected (+24.3%)
• Fugitive emissions/km investigated: 35.02 Sm³/km (-21.8%)

In the first three months of 2023 Italgas Group’s operational activities continue in order to achieve the network’s digital transformation objectives and the sustainability targets set by the Sustainable Value Creation Plan contained in the 2022-2028 Strategic Plan. Italgas’ distribution networks – smart, digital and flexible – are ready to accommodate renewable gases, such as biomethane, hydrogen and synthetic methane, and to act as a driving force for the ecological transition while guaranteeing energy security and competitive costs for industries and citizens.

Key economic indicators continue to grow, thanks to major investments in the digitization of assets, processes and people that confirm the pivotal role of technological innovation in the Group’s development path.

During the period, € 175.1 million of investments were made, mainly for the extension, digital transformation and repurposing of networks. More specifically, 213 kilometres of new pipelines were laid in the first quarter of 2023.

The EBITDA for the first three months of 2023 amounted to € 297.2 million (+18.9% compared to 31 March 2022) and net profit attributable to the Group was € 103.6 million (+16.5% compared to 31 March 2022).

With reference to sustainability objectives, the significant contribution of the various innovation, digitisation and energy efficiency initiatives, both in the industrial and civil sectors, as well as the training activities aimed at informing employees on energy efficiency issues, have allowed the Group to continue on its path towards reducing net energy consumption (-17.3%) and Scope 1 and 2 climate-changing emissions (-6.4%), also in view of the inclusion of the DEPA Infrastructure Group’s contributions related to 2023.

 

Paolo Gallo, CEO of Italgas, commented:

The results achieved in the first quarter allow us to start 2023 under the banner of growth both in terms of performance and the business development in the countries where we operate.

All economic indicators showed double-digit growth, with EBITDA increasing by 18.9% to almost € 300 million and Group Net Profit exceeding € 100 million, up 16.5% compared to the first quarter of last year, thanks also to the contribution of the activities in Greece and the ESCo company.

The € 175 million invested in this first quarter further accelerated the digital transformation of the network that makes our networks ready to accommodate the renewable gases. Such gases are strategic for an ecological transition that ensures, in line with EU objectives, energy security and cost competitiveness for citizens and businesses.

Thanks to the commitment of the men and women of the Italgas Group, we are working to provide communities with an increasingly efficient service using cutting-edge technology; the very same technologies that we have laid at the heart of our path towards a decarbonised economy.

 

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¹ The item expresses net financial debt excluding the effects of IFRS 16 payables and the Italgas NewCo shareholder loan, inclusive of interest.

² The item does not include liabilities for € 35.0 million consisting of the pro-rata share of the shareholder loan, including interest, to Italgas Newco S.p.A, subordinated and convertible into shares, subscribed by the shareholder Phaeton Holding SA, deemed not to be financial debt.