Earnings Release • May 14, 2018
Earnings Release
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| Informazione Regolamentata n. 0887-17-2018 |
Data/Ora Ricezione 14 Maggio 2018 13:15:30 |
MTA - Star | ||||
|---|---|---|---|---|---|---|
| Societa' | : | ASCOPIAVE | ||||
| Identificativo Informazione Regolamentata |
: | 103755 | ||||
| Nome utilizzatore | : | ASCOPIAVEN01 - Rossetto | ||||
| Tipologia | : | REGEM | ||||
| Data/Ora Ricezione | : | 14 Maggio 2018 13:15:30 | ||||
| Data/Ora Inizio Diffusione presunta |
: | 14 Maggio 2018 13:15:31 | ||||
| Oggetto | : | The Board of Directors has approved the results of the first quarter of 2018 -This press release cancels and replaces the previous english version |
||||
| Testo del comunicato |
Vedi allegato.
ASCOPIAVE: The Board of Directors has approved the results of the first quarter of 2018.
Gross Operating Margin: Euro 35.9 million, a slight decrease as compared to the first quarter of 2017 (Euro 36.6 million)
Operating Result: Euro 29.9 million (Euro 31.1 million in the first quarter of 2017)
Net Consolidated Profit: Euro 25.0 million (Euro 26.0 million in the first quarter of 2017)
Net Financial Position: Euro 55.6 million, an improvement compared to 31st December 2017 (Euro 119.9 million)
The Ascopiave S.p.A. Board of Directors, which had a meeting chaired by Mr Nicola Cecconato, today, has acknowledged and approved the interim report of the Ascopiave Group as of 31st March 2018, drafted in compliance with the International Accounting Standards IAS/IFRS.
In this regard, Ascopiave's Chairman, Nicola Cecconato, commented: "The figures for the first quarter of 2018 confirm the high profitability and the solid financial structure of the Group, once again among the best in the sector. These results testify to the effectiveness of the strategic process undertaken by the management and the professional quality of the resources employed by the Group.
Thanks to the above, also supported by the optimisation of operating results and cash flows, Ascopiave continues investing in strategic assets and organisational processes, in order to take full advantage of the opportunities offered by the markets dealing with the sale of natural gas and electricity and the upcoming "Atem" calls for tenders for the distribution of natural gas".
The General Manager, Roberto Gumirato, added: "The first quarter of 2018 shows excellent results, substantially unchanged compared to the first quarter of 2017: as far as the sale of gas and electricity is concerned, the gross operating margin is affected by the cancellation of the gradualness tariff component and the decrease in the amounts of gas sold, mitigated by lower charges for capacity commitments, a better procurement cost and an increase in the margins of electricity sales. The segment dealing with the distribution of natural gas is affected by lower margins achieved upon managing energy efficiency requirements, offset by the results deriving from the extension of the scope of consolidation.
Streamlining and technological and organisational investments are progressing, aimed at the effective implementation of the Group's strategic plan."
The Ascopiave Group closed the first quarter of 2018 with consolidated revenues amounting to Euro 200.6 million, compared to Euro 199.5 million recorded in the first quarter of 2017 (+0.6%). The increase in turnover is mainly due to the revenues for forward sales of the raw material (Euro +3.3 million) and the extension of the scope of consolidation (Euro 5.0 million). They were partially offset by lower revenues recorded for sales of natural gas to the end market (Euro -6.5 million).
Gross operating margin in the first quarter of 2018 amounted to Euro 35.9 million, marking a decrease compared to Euro 36.6 million in the same period in the previous year (-2.1%).
Trade margins on gas sale decreased by Euro 1.0 million compared to the first quarter of 2017. The decrease is mainly explained by the reduction in the amounts of gas sold and by the cancellation of the gradualness tariff component included in the sales prices applied to the protected market, as established by the Regulatory Authority for Energy, Networks and the Environment. The negative effects indicated were partially offset by the lower charges for capacity commitments and an improvement in the procurement cost.
Trade margins on gas trading amounted to Euro 0.1 million.
Trade margins on electricity sale increased by Euro 0.3 million, mainly due to the greater unit margins achieved.
The tariff revenues from distribution and metering increased by Euro 3.2 million compared to the first quarter of 2017 (of which Euro 2.9 million generated by the extension of the scope of consolidation).
The change in the item "residual costs and revenues" – with the same consolidation scope – negatively affected the gross operating margin (Euro -1.1 million), mainly due to the lower margins achieved from managing energy efficiency requirements (Euro -1.2 million).
Net of the performance of energy efficiency obligations, the other cost and revenue items were substantially in line with the first quarter of the previous year although the first quarter of 2017 benefitted from Euro 0.7 million in contributions received from CCSE for safety incentives. Among the most remarkable variations, please note lower advertising and marketing expenses amounting to Euro 0.4 million.
The operating result in the first quarter of 2018 amounted to Euro 29.9 million, compared to Euro 31.1 million in the previous year (-3.9%).
This result was determined, in addition to a decrease in gross operating margin, by an increase in amortisation and depreciation (Euro +0.6 million), only partially offset by a decrease in the provision for doubtful accounts (Euro -0.1 million). The increase in amortisation and depreciation is mainly attributable to the extension of the scope of consolidation (Euro +0.5 million).
The consolidated net profit amounted to Euro 25.0 million, marking a decrease compared to Euro 26.0 million in the first quarter of 2017 (-4.0%).
The consolidation with the equity method of the jointly controlled companies and the associate company Sinergie Italiane S.r.l., under liquidation, generated income for Euro 3.8 million, compared to Euro 3.7 million in the same period in the previous year.
Net financial expenses amounted to Euro 0.2 million, marking an increase compared to the first quarter of the previous year equal to Euro 0.1 million.
Taxes recorded in the profit and loss account amounted to Euro 8.5 million, a decrease of Euro 0.2 million (-2.8%) explained by a lower taxable income.
The tax rate, calculated by normalising the pre-tax result of the companies consolidated with the equity method, increased from 28.1% to 28.5%.
Jointly controlled companies consolidated with the equity method in the first quarter of 2018 achieved a consolidation pro-rata gross operating margin of Euro 5.4 million, a decrease of Euro 0.4 million compared to the first quarter of 2017.
The volumes of gas sold by the fully-consolidated companies in the first quarter of 2018 amounted to 367.5 million cubic metres, marking a decrease of 3.3% compared to the first quarter of 2017.
The equity-method consolidated companies sold a total of 65.7 million cubic metres of gas pro-rata in total, marking a decrease of 2.6% compared to the first quarter of 2017.
The volumes of electricity sold by the fully-consolidated companies in the first quarter of 2018 amounted to 94.4 GWh, thus recording a decrease of 6.7% compared to the same period in 2017.
The companies consolidated with the equity method sold 15.7 GWh pro-rata in total, marking an increase of 10.0% compared to the same period in 2017.
With regard to gas distribution, the volumes of gas delivered through the networks managed by the fullyconsolidated companies amounted to 460.8 million cubic metres, showing an increase of 30.3% compared to the previous year (the merged company AP Reti Gas Vicenza S.p.A. - formerly Pasubio Group S.p.A. distributed 80.3 million cubic metres of gas).
The pro-rata 35.9 million cubic metres distributed by Unigas Distribuzione S.r.l., consolidated with the equity method, must be added to these volumes.
Investments by the fully-consolidated companies in intangible and tangible fixed assets in the first quarter of 2018 amounted to Euro 5.0 million and mainly concerned the development, maintenance and upgrade of gas distribution networks and systems.
Specifically, investments in gas networks and systems amounted to Euro 4.8 million, of which Euro 1.2 million in connections, Euro 0.7 million in enlargements and enhancing of distribution networks and Euro 0.2 million in maintenance, mainly relating to reduction and pre-heating systems. Investments in metres and adjusters amounted to Euro 2.5 million.
Investments by the equity-method consolidated companies in intangible and tangible fixed assets amounted to Euro 0.3 million and they also relate mainly to methane networks and plants.
The Group's net financial position as of 31st March 2018 amounted to Euro 55.6 million, a decrease of Euro 64.3 million as compared to 31st December 2017.
The debt/shareholders' equity ratio as of 31st March 2018 amounted to 0.12 (0.27 as of 31st December 2017). The indicator is among the best-performing in the field.
On 25th January 2018, the Parent Company Ascopiave S.p.A. took out a 12-year unsecured syndicated loan to the amount of Euro 10,000 thousand with Cassa Centrale Banca and Banca di Credito Cooperativo delle Prealpi, to which a 1.83% fixed rate is applied. The loan does not envisage the verification of financial covenants.
By Resolution 72/2018/R/GAS dated 8th February 2018, the Regulatory Authority for Energy, Networks and the Environment approved the reform of the gas settlement regulatory framework, which will take effect commencing 1st January 2020. By this measure, the Authority simplified the procedures for determining the items attributable to the settlement entity, which will be required to supply the REMI with the quantities determined according to the actual measurements for the redelivery points of the distribution network based on monthly measurements or daily details of the expected consumptions, and on the basis of the application of the expected withdrawal profile with climate correction for the withdrawal points measured less frequently than once a month. The Authority also entrusted the settlement manager with the task of supplying the difference between the quantities withdrawn at the REMIs and the sum of the expected consumptions attributable to the settlement entities for the REMIs served and assigned the SII (Integrated Information System) the responsibility of making available to the settlement manager the withdrawal data of the PDR (Redelivery Points for end customers).
The Shareholders' Meeting of Ascopiave S.p.A. convened in ordinary session on 26th April 2018, chaired by Mr Nicola Cecconato.
The Shareholders' Meeting approved the financial statements for the year 2017 and resolved to distribute a dividend of Euro 0.18 per share. The dividend was paid on 9th May 2018, with ex-dividend date on 7th May 2018 (record date on 8th May 2018).
Furthermore, the Shareholders' Meeting approved the Remuneration Policy, compiled in accordance with art. 123-ter of the Unified Finance Law and removed partially the lock-up restriction on the stock-based bonus, for an amount sufficient to pay the withholding taxes and contributions due by the beneficiary, with reference to the Information Document - compiled pursuant to art. 84-bis of Consob Issuers' Regulations - "2015-2017 long-term share-based incentive plan".
The Shareholders' Meeting, in addition, approved a Long-term share-based incentive plan for the three-year period 2018-2020 for executive directors and some managers of Ascopiave S.p.A. and its subsidiaries.
Finally, the Meeting approved a new purchase and sale plan of treasury shares under the terms of articles 2357 and 2357-ter of the Italian Civil Code, to replace and revoke the previous authorisation dated 28th April 2017.
As far as the gas distribution activities are concerned, in 2018 the Group will continue its normal operations and service management and perform preparatory activities for the invitations to tender. The Group will also participate in the tenders invited, if any, for the award of the Minimum Territorial Areas in which it is interested. Most Towns currently managed by the Group belong to Minimum Territorial Areas for which the maximum deadline to issue the call for tenders has expired. If the tender authorities issue calls for tenders in 2018, in the light of the time required to submit bids, and evaluate and select them, it is reasonable to assume that possible transfers of management to potential new operators may be executed only after the end of 2018. Thus, the activity perimeter of the Group will likely not change compared to today, if we exclude the possibility of winning the tender for the assignment of the natural gas distribution service in the Minimum Territorial Area of Belluno, provided the winner is selected by the end of 2018.
In connection with the economic results, the tariff adjustment for the year 2018 is completely defined and should ensure revenues substantially in line with those of 2017.
As concerns the energy efficiency obligations, the significant volatility experienced by the prices of the energy efficiency certificates makes it difficult to forecast their impact on profit and loss over the entire financial year; therefore, the positive margin achieved in 2017 (€ 3,6 million) will not be repeated in 2018.
As far as gas sale is concerned, assuming normal weather conditions, trade margins are expected to decrease compared to 2017, due to the competitive pressure in the retail market and the tariff measures issued by ARERA (change in the gradualness component).
The Group could also be exposed to the negative economic effects arising from the modification of the allocated volumes and the volumetric differences that occur in different parts of the network where natural gas is measured, with reference to the effects of the provisions governing settlement that ARERA should issue for the years from 2013 to 2016.
As regards electricity sales, the fiscal year 2018 could confirm 2017 results.
However, these results could be influenced, in addition to the possible new tariff provisions by the Regulatory Authority for Energy, Networks and the Environment – currently unforeseeable – also by the evolution of the more general competitive context, as well as by the Group's procurement strategy.
The actual results of 2018 could differ compared to those announced depending on various factors amongst which: the evolution of supply and demand and gas and electricity prices, the actual operational performance, the general macroeconomic conditions, the impact of regulations in the energy and environmental fields, success in the development and application of new technologies, the changes in stakeholder expectations and other changes in business conditions.
Gas consumption undergoes a considerable amount of variations on a seasonal basis, with a greater demand in winter in relation to higher consumptions for heating. This seasonality influences the trend of revenues from gas sales and of procurement costs, while other operating costs are fixed and incurred by the Group in a uniform manner throughout the year. This peculiarity of the business also affects the performance of the Group's net financial position, as the invoicing cycles of accounts receivable and payable are not aligned and also depend on the volumes of gas sold and purchased during the year. Therefore, the data and the
information contained in the interim financial statements do not allow for immediate indications to be drawn regarding the overall performance for the year.
The manager in charge of preparing the company accounting documents, Mr Cristiano Belliato, hereby states, under the terms of paragraph 2, article 154 bis, Unified Finance Law, that the accounting information note contained in this press release reflects the official documents, accounting books and records.
The Interim Management Report for the period ended 31st March 2018 shall be made available to the public at the registered office and at the stock management company Borsa Italiana S.p.A. (Italian Stock Exchange), stored in the "eMarket SDIR-eMarket Storage" system provided by Spafid Connect S.p.A. and published on the website www.gruppoascopiave.it within the time prescribed by law.
Consolidated financial statements, not subject to audit.
The Ascopiave Group operates in the natural gas sector, mainly in the segments of distribution and sale to end users. Thanks to its broad customer base and the quantity of gas sold, Ascopiave is currently one of the main operators in the industry at a national level.
The Group owns concessions and direct assignments for the management of distribution activities in 230 Towns, supplying the service to a market segment of 1.5 million inhabitants, through a distribution network which spreads over 10,000 kilometres. The sale of natural gas is performed through different companies, some under joint control. Overall, in 2017, the companies of the Group sold over 1 billion cubic metres of gas to end users.
Ascopiave has been listed under the Star segment of Borsa Italiana since 12th December 2006.
Contact: Community Group Ascopiave Giuliano Pasini Tel. + 39 0438 / 980098 Auro Palomba Roberto Zava - Media Relator Tel. +39 0422 / 416111 Mob. +39 335 / 1852403
Pieve di Soligo, 14th May 2018
Mob. +39 335 / 6085019 Giacomo Bignucolo – Investor Relator Mob. +39 335 / 1311193
Interim Report
as of 31st March 2018
| (Thousands of Euro) | 31.03.2018 | 31.12.2017 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | (1) | 80.758 | 80.758 |
| Other intangible assets | (2) | 346.485 | 346.934 |
| Tangible assets | (3) | 32.023 | 32.334 |
| Shareholdings | (4) | 71.423 | 68.878 |
| Other non-current assets | (5) | 13.023 | 13.015 |
| Advance tax receivables | (6) | 11.483 | 11.479 |
| Non-current assets | 555.197 | 553.397 | |
| Current assets | |||
| Inventories | (7) | 2.774 | 4.072 |
| Trade receivables | (8) | 196.593 | 156.884 |
| Other current assets | (9) | 71.816 | 57.865 |
| Tax receivables | (10) | 2.720 | 2.645 |
| Cash and cash equivalents | (11) | 82.012 | 15.555 |
| Current assets from derivative financial instruments | (12) | 628 | 1.510 |
| Current assets | 356.543 | 238.532 | |
| ASSETS | 911.740 | 791.929 | |
| Net equity and liabilities | |||
| Total Net equity | |||
| Share capital | 234.412 | 234.412 | |
| Own shares | 17.521 | 17.521 | |
| Reserves | 250.572 | 228.620 | |
| Net equity of the Group | 467.462 | 445.511 | |
| Net equity of Others | 6.392 | 4.989 | |
| Total Net equity | (13) | 473.854 | 450.500 |
| Non-current liabilities | |||
| Provisions for risks and charges | (14) | 5.416 | 5.913 |
| Severance indemnity | (15) | 5.003 | 4.836 |
| Medium- and long-term bank loans | (16) | 59.310 | 54.360 |
| Other non-current liabilities | (17) | 23.195 | 22.930 |
| Non-current financial liabilities | (18) | 258 | 277 |
| Deferred tax payables | (19) | 15.469 | 15.733 |
| Non-current liabilities | 108.651 | 104.048 | |
| Current liabilities | |||
| Payables due to banks and financing institutions | (20) | 76.037 | 80.304 |
| Trade payables | (21) | 125.409 | 117.653 |
| Tax payables | (22) | 2.719 | 625 |
| Other current liabilities | (23) | 123.029 | 38.312 |
| Current financial liabilities | (24) | 2.010 | 480 |
| Current liabilities from derivative financial instruments | (25) | 31 | 7 |
| Current liabilities | 329.235 | 237.382 | |
| Liabilities | 437.886 | 341.430 | |
| Net equity and liabilities | 911.740 | 791.929 |
| (Thousands of Euro) | 1st Quarter 2018 | 1st Quarter 2017 | |
|---|---|---|---|
| Revenues | (26) | 200,648 | 199,503 |
| Total operating costs | 165,133 | 163,357 | |
| Purchase costs for raw material (gas) | (27) | 109,185 | 107,908 |
| Purchase costs for other raw materials | (28) | 8,273 | 5,553 |
| Costs for services | (29) | 31,747 | 37,865 |
| Costs for personnel | (30) | 6,149 | 5,958 |
| Other management costs | (31) | 9,802 | 6,122 |
| Other income | (32) | 22 | 50 |
| Amortization and depreciation | (33) | 5,650 | 5,063 |
| Operating result | 29,864 | 31,083 | |
| Financial income | (34) | 58 | 52 |
| Financial charges | (34) | 245 | 115 |
| Evaluation of subsidiary companies with the net equity | |||
| method | (34) | 3,783 | 3,713 |
| Earnings before tax | 33,460 | 34,733 | |
| Taxes for the period | (35) | 8,461 | 8,703 |
| Result for the period | 24,999 | 26,030 | |
| Group's Net Result | 23,502 | 24,541 | |
| Third parties Net Result | 1,497 | 1,489 | |
| Consolidated statement of comprehensive income | |||
| 1. Components that can be reclassified to the income | |||
| statement | |||
| Fair value of derivatives, changes in the period net of tax | (902) | (1,046) | |
| Total comprehensive income | 24,098 | 24,984 | |
| Group's overall net result | 22,695 | 23,611 | |
| Third parties' overall net result | 1,403 | 1,373 | |
| Base income per share | 0.106 | 0.110 | |
| Diluted net income per share | 0.106 | 0.110 |
| (Thousands of Euro) | Share capital |
Legal reserve |
Own shares |
Reserves IAS 19 actuarial differences |
Other reserves |
Net result for the period |
Group's net equity |
Net result and net equity of others |
Total net equity |
|---|---|---|---|---|---|---|---|---|---|
| Balance as of 1st January 2018 | 234,412 | 46,882 | (17,521) | (46) | 134,649 | 47,135 | 445,511 | 4,989 | 450,500 |
| Result for the period | 23,502 | 23,502 | 1,497 | 24,999 | |||||
| Other operations | (807) | (807) | (95) | (902) | |||||
| Total result of overall income statement | (0) | (807) | 23,502 | 22,695 | 1,403 | 24,098 | |||
| Allocation of 2017 result | 47,135 | (47,135) | (0) | (0) | |||||
| Other operations | (743) | (743) | (743) | ||||||
| Balance as of 31st March 2018 | 234,412 | 46,882 | (17,521) | (46) | 180,234 | 23,502 | 467,462 | 6,392 | 473,854 |
| (Thousands of Euro) | Share capital |
Legal reserve |
Own shares |
Reserves IAS 19 actuarial differences |
Other reserves |
Net result for the period |
Group's net equity |
Net result and net equity of others |
Total net equity |
|---|---|---|---|---|---|---|---|---|---|
| Balance as of 1st January 2017 | 234,412 | 46,882 | (17,522) | (108) | 120,757 | 53,635 | 438,055 | 6,155 | 444,209 |
| Result for the period | 24,541 | 24,541 | 1,489 | 26,030 | |||||
| Other operations | (930) | (930) | (116) | (1,046) | |||||
| Total result of overall income statement | (0) | (930) | 24,541 | 23,611 | 1,373 | 24,984 | |||
| Allocation of 2016 result | 53,635 | (53,635) | (0) | (0) | |||||
| Balance as of 31st March 2017 | 234,412 | 46,882 | (17,522) | (108) | 173,461 | 24,541 | 461,666 | 7,527 | 469,193 |
| (thousands of Euro) | FQ 2018 | FQ 2017 |
|---|---|---|
| Net income of the Group | 23,502 | 24,541 |
| Cash flows generated (used) by operating activities | ||
| Adjustments to reconcile net income to net cash | ||
| Third-parties operating result | 1,497 | 1,489 |
| Amortization | 5,650 | 5,063 |
| Bad debt provisions | 345 | 478 |
| Variations in severance indemnity | 167 | 59 |
| Current assets / liabilities on financial instruments and forward purchasee and sales | 798 | 1,009 |
| Net variation of other funds | (3) | (4) |
| Evaluation of subsidiaries with the net equity method | (3,783) | (3,713) |
| Interests paid | (418) | (146) |
| Interest expense for the year | 243 | 112 |
| Taxes for the year | 8,461 | 8,703 |
| Variations in assets and liabilities | ||
| Inventories | 1,298 | 2,031 |
| Accounts payable | (40,054) | (57,337) |
| Other current assets | (13,160) | (5,324) |
| Trade payables | 7,756 | 557 |
| Other current liabilities | 76,598 | 64,923 |
| Other non-current assets | (8) | (3) |
| Other non-current liabilities | 266 | 316 |
| Total adjustments and variations | 45,654 | 18,212 |
| Cash flows generated (used) by operating activities | 69,156 | 42,754 |
| Cash flows generated (used) by investments | ||
| Investments in intangible assets | (4,705) | (3,980) |
| Realisable value of intangible assets | 78 | 0 |
| Investments in tangible assets | (264) | (390) |
| Cash flows generated/(used) by investments | (4,891) | (4,370) |
| Cash flows generated (used) by financial activities | ||
| Net changes in debts due to other financers | (19) | (24) |
| Net changes in short-term bank borrowings | (9) | 16,275 |
| Net variation in current financial assets and liabilities | 1,530 | (1,860) |
| Ignitions loans and mortgages | 80,000 | 16,000 |
| Redemptions loans and mortgages | (79,309) | (28,500) |
| Cash flows generated (used) by financial activities | 2,193 | 1,891 |
| Variations in cash | 66,457 | 40,275 |
| Cash and cash equivalents at the beginning of the period | 15,555 | 8,822 |
| Cash and cash equivalents at the end of the period | 82,012 | 49,097 |
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