Tag: Financial

Milan, Athens, 3 October 2022 – Depa Infrastructure, the leading Greek gas distribution operator that recently became part of the Italgas’ Group, has signed a new Bond Loan Programme with Eurobank S.A., for a maximum nominal amount of up to 580 million euros, divided into 3 tranches with a maturity of up to 5,7 and 12 years respectively.

The Bond Loan will mainly be used to finance the investments envisaged in the infrastructure development plan of Depa Infrastructure and its subsidiaries in Greece.

“The loan, signed in less than one month after our entry into Depa Infrastructure,” – said Paolo Gallo, Italgas’ CEO – “confirms the appreciation of the financial system for the development vision that we intend to realise in Greece. Our smart, digital and flexible networks will be a driver for growth and produce a multiplier effect on wealth for the whole country, in addition to contributing to the rapid decarbonization of energy consumption, both moving to natural gas and by stimulating the production of renewable gases such as biomethane”.

The transaction, hold in the current international financial market volatility, aiming at providing the Depa Infrastructure with an adequate financial structure, among other factors, in terms of duration and type of financial instruments available.

Milan, 23 September 2022 – Moody’s Investors Service (Moody’s) has affirmed today Italgas S.p.A Long-Term Issuer Rating at ‘Baa2’, Negative Outlook. The rating affirmation is based on Italgas’ positioning in a sector characterized by a well-established regulatory framework, as well as on the ability to achieve operational efficiencies and respect the investment targets set out in the Strategic Plan; the Outlook reflects Italgas’ exposure to pressures linked to Italian sovereign credit quality worsening.

The rating agency highlights the Company’s strong track record on costs optimization, achieved through technological innovation and digitization activities, in addition to the ability to execute planned investments while maintaining an extremely low cost of debt, thanks to which the Company will be able to sustain its profitability and a robust cash flow generation.

Finally, Moody’s underlines the key relevance of DEPA Infrastructure acquisition, finalized last September 1^st, 2022 through which Italgas will diversify its geographical footprint beyond Italy and will be able to carry out its know-how, particularly in terms of operating efficiency and cost optimization.

• The EIB and Italgas will support energy efficiency projects in residential buildings throughout Italy.
• It is estimated that the interventions will help to improve the energy efficiency of around 4,500 homes and that more than 1,500 jobs will be created during the project implementation phase.
• The operation supports the directives of the Renovation Wave and the European Green Deal, as well as the Integrated National Energy and Climate Plan.

Milan, 20 September 2022 – Reducing environmental pollution through investments to improve the energy efficiency of residential buildings throughout Italy over the next three years. This is the main objective of the framework loan of 150 million euros granted by the European Investment Bank (EIB) to Italgas for interventions to be carried out in Italy through Seaside, the Group’s Energy Service Company.

The loan, called Climate Action Framework Loan, marks the EIB’s return to cooperation with the Italgas Group by activating the Bank’s investments in energy companies capable of contributing to the ecological transition path towards net zero.

The loan is intended to support the implementation of energy efficiency investments in Italy, mainly focused on the renovation of residential buildings, with the aim of reducing air pollution and producing health benefits, in line with the directives of the European Green Deal and the Renovation Wave, which aims to double the energy renovation rate of European buildings by 2030. It is estimated that the interventions financed by the EIB will help to improve the energy efficiency of around 4,500 homes and that the implementation phase of the project will create more than 1,500 new jobs.

The funding has a “Framework Loan” structure and envisages mechanisms for capital allocation and disbursement specifically conceived to support the implementation of a wide range of both small and medium-sized projects, offering particularly competitive terms and conditions.

“More than 85 per cent of Italian residential buildings are in energy class D or lower and require heavy investment. Projects such as the one signed today with Italgas are essential not only to reduce dependence on energy imports from third countries but also to lower energy consumption, hence the cost of Italian citizens’ bills”, said Gelsomina Vigliotti, EIB Vice-President.

Paolo Gallo, CEO of Italgas, commented: “The best energy is that is not wasted, and the EIB loan will enable us to further strengthen our commitment to energy efficiency and ecological transition, in line with the objectives of Italgas’ 2022-2028 Strategic Plan.  Through our ESCo Seaside and our in-house developed technologies we will offer the market and communities cutting-edge solutions, actively contributing to the achievement of Italy’s and the European Union’s climate targets”.

Seaside is the Italgas Group company active in the energy efficiency sector for condominiums, companies and public administration. With its proprietary technologies, it contributes to the achievement of national energy efficiency objectives and to the decarbonisation of consumption.

In addition to consolidating the excellent partnership between the EIB and Italgas, the transaction will further optimise the Italgas Group’s financial structure, both in terms of reducing the cost of funding and extending the average duration of debt, in support of the significant investment plan envisaged in the Company’s 2022-2028 Strategic Plan.

General Information

The European Investment Bank (EIB) is the long-term financial institution of the European Union and is owned by its Member States. It provides long-term funding for sound investments to contribute to the EU’s strategic objectives. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2021, the EIB Group lent more than EUR 36bn for projects in Italy.  

Italgas is Italy’s leading operator in gas distribution and the third in Europe. It operates a distribution network that extends for a total of about 75,000 kilometres through which, in the last year, it distributed approximately 9 billion cubic metres of gas to 7.8 million customers. The Group holds 1,899 concessions, with a historical presence in the country’s major cities including Turin, Venice, Florence and Rome. It is also present in Greece through its subsidiary Depa Infrastructure. In recent years Italgas has given a strong boost to its presence in the energy efficiency and innovation technology sectors.

Milan, 25 July 2022 – Italgas’ Board of Directors, chaired by Benedetta Navarra, met today and approved the consolidated results for the first half of 2022.

Key figures

Consolidated economic and financial highlights:

• Total revenues: € 707.4 million (+6.3%)
• Gross operating margin (EBITDA): € 513.3 million (+4.9%)
• Operating profit (EBIT): € 296.0 million (+5.9%)
• Adjusted net profit attributable to the Group: € 188.3 million (+6.9%)
• Technical investments: € 374.4 million
• Cash flow from operating activities: € 459.5 million
• Net financial debt (excluding the effects pursuant to IFRS 16): € 5,033.4 million
• Net financial debt: € 5,094.4 million

ESG – key indicators, Scope 1 and Scope 2 and energy consumption:

• Net energy consumption: 301.5 TJ (-14.0%)
• 54.7 10³ tCO₂eq Scope 1 and 2 (-21.3%)
• 47,667 km of network inspected (+35.4%)
• Fugitive emissions/km investigated: 49.02 Sm3/km (-43.7%)

Operating highlights (including affiliates):

• Municipalities in gas distribution concessions: 1,899
• Number of active meters: 7.75 million
• Gas distribution network: around 74,788 Km

The results of the Italgas Group for the first half of 2022 confirm the resilience of the business model, with a steady growth of all the main economic and financial indicators and the Group’s ability to match development with sustainability targets which were further revised upwards in the 2022-2028 Strategic Plan presented to the financial community on 15 June 2022.

An effort that confirms the Company’s commitment to providing an active contribution both to the energy transition process, whose urgency was increased by the targets set by the European Commission in REPowerEU, and to implementing the National Recovery and Resilience Plan.

In the period, € 374.4 million in investments were made, devoted primarily to the digital transformation of assets and processes, the natural gas distribution in Sardinia and the repurposing of the networks to enable them to distribute renewable gases (biomethane immediately and, in the medium term, hydrogen and synthetic methane).

In the first half of 2022, 230 km of new pipes were laid. In Sardinia, the creation of new fully digital networks continued, reaching a total length of 909 km out of a total to be developed of around 1,100 km. In addition, in the first half of 2022, 11 new GNL storage and regasification plants were commissioned, for a total of 64 plants serving the basins under concession.

The financing requirements related to net investments for the first half of 2022 were amply covered by the cash flow from operating activities, equal to € 459.5 million.

The net financial position as at 30 June 2022 was € 5,094.4 million (€ 4,980.0 million as at 31 December 2021). The net financial position amounted to € 5,033.4 million (€ 4,910.0 million as at 31 December 2021), net of financial liabilities pursuant to IFRS 16 of € 61.0 million (€ 70.0 million as at 31 December 2021).

The EBITDA for the first half of 2022 amounted to € 513.3 million (+4.9% compared to 30 June 2021) and adjusted net profit attributable to the Group was € 188.3 million (+6.9% compared to 30 June 2021).

In the context of the public tender called by the Greek government for privatisation of the gas distribution operator DEPA Infrastructure S.A, Italgas is waiting to finalize the acquisition of 100% of the Company.

Paolo Gallo, CEO of Italgas, commented: 

The results of the first half of 2022 provide additional confirmation of the soundness of a Group capable of continuing to grow without interruption, despite a scenario featuring increasingly complex economic-social and geopolitical conditions.

We have reached the first turning point of the year recording growth in all economic indicators: the EBITDA grows by 4.9%, surpassing € 513 million and the adjusted Net Profit at +6.9% came to approximately € 188 million. Investments, exceeding € 370 million, have been used to digitally transform the network, which is increasingly smart, widespread and flexible, serving the energy transition and the decarbonisation of consumption.

In Sardinia, we are continuing with our commitment to complete distribution of natural gas in the areas under concession. The smart network, which covers approximately 1,500 kilometres, is now the most cutting edge network in the country, both because it is already capable of accommodating renewable gases such as biomethane and hydrogen, and because procurement is guaranteed solely through liquefied natural gas.

Technological innovation is confirmed as the main driver that allowed us to anticipate this change, transform our operations and improve service in terms of quality and efficiency while, at the same time, achieving ever-increasing sustainability targets, significantly contributing to the achievement of the REPowerEU targets.

Press Release of the results at June 30, 2022

Milan, 15 June 2022 – Italgas announces that during yesterday’s meeting, the Board of Directors, chaired by Benedetta Navarra, resolved that issue of the press release concerning the approval of the result at June 30, 2022 has been rescheduled from 26 to 25 July 2022, following its approval by the Board of Director.

As a result, the conference call to present the results to institutional investors and financial analysts will be held on the afternoon of July 25.

Milan, 2 May 2022 – The Italgas’ Board of Directors, which met today chaired by Benedetta Navarra, has approved the consolidated results as of 31 March 2022 (unaudited).

Key figures

Consolidated economic and financial highlights:

• Total revenues: € 354.0 million (+6.2%)
• Gross operating margin (EBITDA): € 250.0 million (+6.7%)
• Operating profit (EBIT): € 141.9 million (+9.2%)
• Adjusted net profit attributable to the Group: € 88.9 million (+9.5%)
• Technical investments: € 179.5 million
• Cash flow from operating activities: € 198.8 million
• Net financial debt: € 4,954.7 million
• Net financial debt (excluding the effects pursuant to IFRS 16): € 4,888.1 million

ESG – key indicators, Scope 1 and Scope 2 and energy consumption:

• 26.4 10³ tCO₂ e Scope 1 and 2 (+8.6%)
• 20,745 km of network inspected (+49.7%)
• Fugitive emissions/km investigated: 44.80 Sm3/km (-17.9%)
• Net energy consumption: 208.3 TJ (-7.2%)

Operating highlights (including affiliates):

• Municipalities in gas distribution concessions: 1,899
• Number of active meters: 7.75 million
• Gas distribution network: around 74,473 Km

The performance of the Italgas Group confirms the constant growth trend that started with its return to the stock exchange in November 2016: the first quarter of 2022 also had positive results in all the main economic and financial indicators and ESG targets established in the 2021-2027 Strategic Plan, which are gradually being achieved.

Moreover, the integration of sustainability and economic performance targets enables the Group to contribute with its investment choices to the energy transition process defined by the EU, and to help ensures the implementation of the Italian National Recovery and Resilience Plan.

In the period, € 179.5 million in investments were made (€ 206.7 million in the first quarter of 2021). These investments are devoted primarily to the digital transformation of assets and processes, the natural gas distribution in Sardinia and the repurposing of the networks to enable them to distribute renewable gases (biomethane immediately and, in the medium term, green hydrogen and synthetic methane).

In the first three months of 2022, 128 km of new pipes were laid; in Sardinia the construction of new fully digital networks continued, reaching a total extension of approximately 903 km out of a total to be built of approximately 1,100 km and 6 new LNG storage and regasification plants were commissioned.

The requirements related to net investments for the first quarter of 2022 were covered by the positive cash flow from operating activities, equal to € 198.8 million.

The net financial position as at 31 March 2022 was € 4,954.7 million (€ 4,980.0 million as at 31 December 2021). The net financial position amounted to € 4,888.1 million (€ 4,910.0 million as of 31 December 2021), net of financial liabilities pursuant to IFRS 16 of € 66.6 million (€ 70.0 million as of 31 December 2021).

The EBITDA for the first quarter of 2022 amounted to € 250.0 million (+6.7% compared to 31 March 2021) and adjusted net profit attributable to the Group was € 88.9 million (+9.5% compared to 31 March 2021).

As is known, on 9 September 2021, Italgas was declared the ‘preferred bidder’ by the Greek privatisation fund (HRADF), and on 10 December 2021 a purchase contract was signed for a price of € 733 million, in the context of the public tender called by the Greek government for privatisation of the distribution operator DEPA Infrastructure S.A. The acquisition of DEPA Infrastructure S.A., which should come to a close during the first half of 2022, will allow the Group to further strengthen its leadership in the European gas sector, entering a market that offers significant growth opportunities and for which it will be able to make its well-known distribution network development and digitisation capacities available to support the country’s energy transition process.

Paolo Gallo, CEO of Italgas, commented:

Due to the positive results for the first quarter 2022, we have been able to start the new mandate fully in line with the previous ones, focusing on the constant growth of all the main economic indicators. This result was even more significant in light of a socio-economic context impacted by the sharp rise in prices on the energy market, whose effects were worsened further by the Russia-Ukraine conflict under way.

More specifically, we recorded an increase of 6.7% in EBITDA, which reached € 250 million, and an adjusted net profit that came to € 89 million, up +9.5% compared to the same period of last year. We are continuing to invest in the digital transformation of our assets and processes and in training our people in order to enable the network to become the main driver of the energy transition by receiving and distributing the incremental amounts of renewable gas such as biomethane, green hydrogen and synthetic methane.

In Sardinia, the extension of our digital native network is continuing and has breathed life back into the island’s energy development. A virtuous model which we will soon be developing also in Greece, on a larger scale, working alongside the government in decarbonising the economy and consumption.

Digitization, sustainability and efficiency have been confirmed as the main drivers of our day-to-day work to continue contributing to the energy transition, which now also moves through the achievement of the RePowerEU targets for the diversification of sources of supply.