Italgas S p A: General Meeting

0

ITALGAS: CONSOLIDATED RESULTS AS OF MARCH 31, 2022 APPROVED

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

Key figures

Consolidated economic and financial highlights:

  • Total turnover: 354.0 million euros (+6.2%)

  • Gross operating margin (EBITDA): €250.0 million (+6.7%)

  • Operating profit (EBIT): 141.9 million euros (+9.2%)

  • Adjusted net income Group share: €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 effects related to IFRS 16): €4,888.1 million

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

  • 26.4 103 tCO2 e Scopes 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%)

Operational Highlights (including affiliates):

  • Municipalities in gas distribution concessions: 1,899

  • Number of active counters: 7.75 million

  • Gas distribution network: approximately 74,473 km

The performance of the Italgas Group confirms the trend of constant growth initiated with its return to the stock market in November 2016: the first quarter of 2022 also recorded positive results in all the main economic and financial indicators and the ESG objectives established in the period 2021- 2027. Strategic plan, which are realized gradually.

In addition, the integration of sustainability and economic performance objectives allows the Group to contribute through its investment choices to the energy transition process defined by the EU, and to help ensure the implementation of the National Plan. Italian recovery and resilience.

Investor Relations Italgas +39 02 8187 2175[email protected]

Stampa Italgas Office +39 02 8187 2021[email protected]

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

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

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

The net financial position as of March 31, 2022 was €4,954.7 million (€4,980.0 million as of December 31, 2021). The net financial position amounts to 4,888.1 million euros (4,910.0 million euros as of December 31, 2021), net of financial debts in application of IFRS 16 of 66.6 million euros (€70.0 million as of December 31, 2021).

EBITDA for the first quarter of 2022 amounted to 250.0 million euros (+6.7% compared to March 31, 2021) and adjusted net income Group share was 88.9 million euros (+9 .5% compared to March 31, 2021).

As is known, on September 9, 2021, Italgas was declared “preferred bidder” by the Greek Privatization Fund (HRADF), and on December 10, 2021, a purchase contract was signed for a price of 733 million euros, within the framework of the public offering call for tenders launched by the Greek government for the privatization of the distribution operator DEPA Infrastructure SA The acquisition of DEPA Infrastructure SA, which should be completed during the first half of 2022, will enable 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 available its recognized capacities for the development and digitalization of the distribution network to support the country’s energy transition process.

Paolo Gallo, CEO of Italgas, said:

Thanks to the positive results of the first quarter of 2022, we were able to start the new mandate in full line with the previous ones, focusing on the constant growth of all the main economic indicators. This result is all the more significant in a socio-economic context marked by the sharp rise in prices on the energy market, the effects of which are further aggravated by the ongoing Russian-Ukrainian conflict.

Specifically, we recorded a 6.7% increase in EBITDA, which reached €250 million, and adjusted net income which amounted to €89 million, up +9, 5% compared to the same period last year. We continue to invest in the digital transformation of our assets and processes and in the training of our employees in order to enable the network to become the main driver of the energy transition by receiving and distributing the additional quantities of renewable gases such as biomethane, green hydrogen and synthetic methane.

In Sardinia, the extension of our native digital network continues and gives new life to the energy development of the island. A virtuous model that we will soon also develop in Greece, on a larger scale, alongside the government to decarbonise the economy and consumption.

Digitization, sustainability and efficiency have been confirmed as the main drivers of our daily work to continue contributing to the energy transition, which now also involves achieving RePowerEU’s objectives in terms of diversifying sources of supply.

Structure of the Italgas group as of March 31, 2022

The structure of the Italgas Group as of March 31, 2022 has changed compared to that existing as of December 31, 2021, due to the acquisition by Italgas SpA of a minority stake in Picarro Inc., measured at fair value, and due to the reclassification of the equity shares of Gaxa SpA at “assets held for sale“following the signing of a firm agreement for the sale of a majority stake to Edison.

Economic and financial highlights

This press release uses alternative performance indicators, including EBITDA (gross operating margin, calculated by subtracting from net profit income taxes, net profit from investments, net finance costs, amortization, impairment and impairments), EBIT (operating result, calculated by subtracting income taxes, net result from participations and net financial result from net result) and net financial debt (calculated as the sum of short-term and long-term financial debt, net of cash and cash equivalents and current financial assets).

The NON-GAAP financial report should be considered complementary to and not a substitute for reports prepared according to IAS – IFRS standards.

Reclassified income statement

first quarter

(in millions of euros)

2021

2022

Abs. cashSwitch %

Regulated gas distribution revenue of which distribution income of which other distribution income Other income

321.0 298.0

318.3 296.3

(2.7) (0.8)

Total revenue

23.0 12.3

333.3 22.0

35.7 354.0 (1.7) (0.6) (1.0) (4.3) 23.4 190.2

20.7 6.2 Operating costs

  • EBITDA (98.9)

  • (104.0)

234.4 250.0 (5.1) 5.2

15.6 6.7 Amortizations, depreciations and impairments

EBIT

(104.5)

(108.1)

129.9 Net finance charge of which special items

Adjusted net finance charge

(20.0) (6.4) (13.6)

141.9 (14.0) (3.6) 3.4 12.0 9.2

6.0 (30.0)

6.4

(14.0) Net income from investments

Gross profit Adjusted gross profit Income taxes taxation related to special items

Adjusted income taxes 0.6

110.5 116.9

0.3

128.2

128.2 (0.4) 2.9 (0.3) (50.0)

17.7 16.0 11.3 9.7

(29.5)

(34.5)

(5.0) 16.9

1.5

(1.5)

(31.0)

(34.5)

(3.5) 11.3

net profit

81.0

93.7

12.7 15.7

Net profit attributable to the Group

76.3

88.9

12.6 16.5

Net income attributable to minority shareholders Adjusted net income

4.7

4.8

0.1 2.1

85.9

93.7

7.8 9.1

Adjusted net income attributable to the Group Adjusted net income attributable to minority interests

81.2

88.9

7.7 9.5

4.7

4.8

0.1 2.1

Contrary to the legal statement, the reclassified income statement requires the mention of Total revenue and Operating expenses net of the impact of IFRIC 12 “Service concession arrangements” (respectively 165.2 and €185.0 million in the first quarters of 2022 and 2021), connection contributions (respectively €4.7 and €4.8 million in the first quarters of 2022 and 2021) and other residual components (respectively 0.1 and 0 €.3 million in the first quarter of 2022 and 2021). the

total income for the first quarter of 2022 amounted to 354.0 million euros, up by 20.7 million euros compared to the corresponding period of 2021 (+6.2%) and relate to regulated gas distribution revenues natural (318.3 million euros) and other income (35.7 million euros) .

Regulated gas distribution revenue decreased by €2.7 million compared to the first quarter of 2021, due to lower distribution income (€1.7 million) and other distribution income (€1.0 million) . The decrease in

distribution income (€ 1.7 million), mainly attributable to the effect of the reduction of the WACC provided for in Resolution no. 614/2021/R/com at 5.6% (€ -13.6 million), as well as for the effect of the change in the X factor (€ -2.1 million) attributable to Resolution no. 570/2019/R/gas, was partially offset by the increase in the specific RAB (€7.6 million), the effect of the deflator (€1.5 million) and the contribution of the new Sardinian networks (2.5 million). There were also larger price adjustments than in the same period of 2021 (2.3 million euros). The reduction of

other distribution income (€1.0 million) is mainly linked to the lower contribution pursuant to article 57 of ARERA Resolution no. 367/14, as subsequently amended

Share.

About Author

Comments are closed.