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Italgas Earnings Release 2024
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Earnings Release
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FY 2024 Results
FY 2024 Key Highlights (1/3)
- ✓ Transformational acquisition of 2i Rete Gas progressing in line with the expected time-table
- ✓ Strong performance in FY 2024:
- ➢ EBITDA1 growth led by Gas Distribution - Italy and Greece
- ➢ Water positive contribution
- ➢ Net Income1 increased by 15% plus
- ➢ Operating cash flow above €1bn, almost doubled vs 2023
- ✓ Sustainability: top-in-class external recognition
Proposing distribution of €0.406 DPS, +15.3% YoY
FY 2024 Key highlights (2/3)
Solid performance with EBITDA1 , EBIT1 and Net Income1 growing double-digit and accelerating throughout the year. Growth in regulated businesses more than offsets the expected slowdown of ESCo after the end of Superbonus.
Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024; (1) adjusted, Net Income attributable to the Group, i.e. post minorities; (2) regulated revenues; (3) attributable to the Group, i.e. post minorities
3
FY 2024 Key highlights (3/3)
Operating cash flow improved materially year-on-year thanks to strong operating performance and positive working capital evolution. Capex in-line with expectations.
Technical Investments
FY 2024 €887.0mn, -2.2% vs FY 2023
FY 2024 development and repurposing capex in line with FY 2023 – 755km of network pipes laid, of which 391km in Greece
Lower digitization as planned, as projects are progressively completed
Other2; €105.0mn
Environmental performance
Continued reduction in energy consumption. Scope 1&2 emissions reduction driven by lower gas leaks. In 2024 the whole network was investigated 1.54x. Gas leaked/km surveyed dropped by 42%.
Social performance and targets
195,000 training hours in 2024 Pay Gap reduced to 7.5%. Diversity of our workforce keeps growing
Note: (1) 2023 & 2024 actual figures refer to Italgas perimeter only. 2030 targets include 2i Rete Gas into the consolidationperimeter; (2) Average ratio among female and male base salary by organizational cluster and by age cluster for employees holding managerial positions
7
Revenues benefitted from the strong performance of regulated businesses offsetting ESCo activities
Revenues adj 0.2% vs FY 2023
€mn
Operating costs benefitting from like-forlike efficiencies and ESCo slowdown
9
Operating costs -27.6% vs FY 2023
€mn
Adj. EBITDA & EBIT growing double-digit
€mn
| FY 2023 adjusted |
FY 2024 adjusted |
Change | ||
|---|---|---|---|---|
| P&L, € mln | ||||
| Total Revenues | 1,774.8 | 1,778.8 | 4.0 | |
| Operating costs | -591.1 | -427.9 | 163.2 | |
| EBITDA | 1,183.7 | 1,350.9 | 167.2 | + 14.1% |
| Depreciation & amortisation |
-502.5 | -530.2 | -27.7 | |
| EBIT | 681.2 | 820.7 | 139.5 | + 20.5% |
| Net interest income (expenses) | -98.2 | -120.6 | -22.4 | |
| Net income from equity investm. | 3.1 | 11.2 | 8.1 | |
| EBT | 586.1 | 711.3 | 125.2 | |
| Income taxes | -118.6 | -176.1 | -57.5 | |
| NET PROFIT before minorities |
467.5 | 535.2 | 67.7 | |
| Minorities | -27.9 | -28.6 | -0.7 | |
| NET PROFIT after minorities | 439.6 | 506.6 | 67.0 | + 15.2% |
12 Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024
FY 2024 Profit and loss reported vs adjusted
| reported vs adjusted | |||||||
|---|---|---|---|---|---|---|---|
| FY 2024 reported |
FY 2024 adjusted |
Adjustments | |||||
| P&L, € mln | |||||||
| Total Revenues | 1,740.3 | 1,778.8 | 38.5 | Negative impact of | |||
| Operating costs | -427.9 | -427.9 | - | resolutions 207/2024 (€9.9mn), 490/2024 |
|||
| EBITDA | 1,312.4 | 1,350.9 | 38.5 | (€24.0mn) and 704/20161 | |||
| Depreciation & amortisation | -530.2 | -530.2 | - | (€4.6mn) | |||
| EBIT | 782.2 | 820.7 | 38.5 | ||||
| Net interest income (expenses) | -120.6 | -120.6 | - | ||||
| Net income from equity investm. | 11.2 | 11.2 | - | ||||
| EBT | 672.8 | 711.3 | 38.5 | ||||
| Income taxes | -165.3 | -176.1 | -10.8 | ||||
| NET PROFIT before minorities | 507.5 | 535.2 | 27.7 | ||||
| Minorities | -28.6 | -28.6 | - | ||||
| NET PROFIT after minorities | 478.9 | 506.6 | 27.7 |
13 Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024; (1) and subsequent integrations
Cash flow from operations covers most of capex needs, dividends and others
14
FY 2024 Financial structure
Net debt in line with expectations. Leverage below 63%2 .
Gross debt 31 12 20241
Low exposure to floating rates
Average cost of debt ~1.6% in FY 2024
Net Debt €6.76bn including IFRS 16
15
EIB Bonds Bank lines
Shareholders' return
Strong dividend growth pattern confirmed in 2024
Dividend per share (€)
Dividend proposal: €0.406 per share
- 15.3% growth vs. 2023 DPS
- Above DPS policy floor of +5% per annum
FY 2024 Quarterly P&L adjusted
| 1Q 2024 | 2Q 2024 | 3Q 2024 | 4Q 2024 | |
|---|---|---|---|---|
| Quarterly P&L adjusted, € mln | ||||
| Total Revenues | 431.3 | 441.0 | 437.0 | 469.5 |
| Operating expenses | -105.6 | -95.5 | - 98.9 |
-127.9 |
| EBITDA | 325.7 | 345.5 | 338.1 | 341.6 |
| Depreciation & amortisation |
-133.0 | -136.4 | - 134.3 |
-126.5 |
| EBIT | 192.7 | 209.1 | 203.8 | 215.1 |
| Net interest income (expenses) |
-26.0 | -29.8 | - 30.0 |
-34.8 |
| Net income from equity investm. |
3.8 | 2.3 | 1.3 | 3.8 |
| EBT | 170.5 | 181.6 | 175.1 | 184.1 |
| Income taxes |
-45.2 | -51.8 | - 48.1 |
-31.0 |
| NET PROFIT before minorities |
125.3 | 129.8 | 127.0 | 153.1 |
| Minorities | -7.7 | -5.9 | - 6.8 |
-8.2 |
| NET PROFIT after minorities | 117.6 | 123.9 | 120.2 | 144.9 |
18 Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024
FY 2024 Revenues breakdown
| FY 2024 Revenues breakdown | ||||
|---|---|---|---|---|
| FY 2023 adjusted |
FY 2024 adjusted |
Change | ||
| Adjusted REVENUES, € mln | ||||
| Regulated revenues Italy distribution |
1,283.8 | 1,446.2 | 86.0 | |
| Distribution | 1,197.3 | 1,362.2 | 164.9 | |
| Tariff contribution for meters replacement |
10.0 | 4.2 | -0.7 | |
| Other distribution revenues |
76.5 | 79.8 | 3.9 | |
| Enaon (Greece) | 168.6 | 176.2 | 0.7 | |
| Other revenues |
322.4 | 156.5 | -165.9 | |
| TOTAL REVENUES | 1,774.8 | 1,778.8 | 4.0 |
FY 2024 Operating costs
| FY 2023 adjusted |
FY 2024 adjusted |
Change | |
|---|---|---|---|
| OPERATING COSTS, € mln | |||
| Distribution fixed costs Italy + Greece | 263.8 | 249.7 | -14.1 |
| Net labour cost | 162.8 | 157.7 | -5.1 |
| Net external cost | 101.0 | 92.0 | -9.0 |
| Other activities | 250.5 | 95.6 | -154.9 |
| Net labour cost | 7.7 | 14.7 | 7.0 |
| Net external cost | 242.8 | 80.9 | -161.9 |
| Other costs | 8.3 | 8.4 | 0.1 |
| Tee | 1.6 | 0.0 | -1.6 |
| Concessions fees | 66.9 | 74.2 | 7.3 |
| OPERATING EXPENSES | 591.1 | 427.9 | -163.2 |
FY 2024 Balance sheet
31/12/2023 31/12/2024 Change
21
| € mln | |||
|---|---|---|---|
| Net invested capital | 9,235.0 | 9,556.3 | 321.3 |
| Fixed capital | 8,421.4 | 8,777.1 | 355.7 |
| Tangible fixed assets | 386.0 | 383.3 | -2.7 |
| Net intangible fixed assets | 8,250.3 | 8,305.6 | 55.3 |
| Net payables investments | -370.5 | -407.4 | -36.9 |
| Equity investments | 153.0 | 176.1 | 23.1 |
| Other fixed capital | 2.6 | 319.5 | 316.9 |
| Net working capital | 872.3 | 835.1 | -37.2 |
| Provisions for employee benefits | -65.3 | -61.3 | 4.0 |
| Assets held for sale and directly related liabilities | 6.6 | 5.4 | -1.2 |
| Net financial debt | 6,634.3 | 6,762.8 | 128.5 |
| Financial debt for operating leases (IFRS 16) | 79.1 | 90.5 | 11.4 |
| Net financial debt ex operating leases | 6,555.2 | 6,672.3 | 117.1 |
| Shareholders' equity | 2,600.7 | 2,793.5 | 192.8 |
Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024
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Sustainability performance
Maximum score Italgas Sector Average
Group Structure
Regulated activities Equity consolidation
To be a leading figure in the world of energy, driving its sustainable evolution and innovating each day to improve people's quality of life.
Vision Purpose
Pioneers by passion and builders by calling, we bring all our energy to accelerate the ecological transition. We do it for us. We do it for everyone
We have guaranteed efficient, safe and excellent energy services to the community for over 180 years. We favour the energy transition, creating the networks of the future and promoting innovative, sustainable solutions. We take care of local communities. We fuel positive, productive relationships with all of our stakeholders: individuals, companies, suppliers and shareholders. We enter new markets where we can apply our distinctive expertise. We promote the growth of individuals and develop talent, creating inclusive, stimulating work environments
Disclaimer
Italgas' Manager, Gianfranco Maria Amoroso, in his position as manager responsible for the preparation of financial reports, certifies pursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and information disclosures herewith set forth correspond to the company's evidence and accounting books and entries. This presentation contains forward-looking statements regarding future events and the future results of Italgas that are based on current expectations, estimates, forecasts, and projections about the industries in which Italgas operates and the beliefs and assumptions of the management of Italgas. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management are forward-looking in nature. Words such as 'expects', 'anticipates', 'targets', 'goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, Italgas' actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, political, economic and regulatory developments in Italy and internationally. Any forward-looking statements made by or on behalf of Italgas speak only as of the date they are made. Italgas does not undertake to update forward looking statements to reflect any changes in Italgas' expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any further disclosures Italgas may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange.
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Anna Maria Scaglia Emanuele Isella