Italgas: consolidated results as at 31 march 2023 approved

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.