MILAN (ITALPRESS) – Italgas Group’s strategic plan for the period 2024-2030, includes 15.6 billion in investments, up by 7.5 billion, earmarked for the acquisition of 2i Rete Gas, interventions for the development of gas distribution in Italy and Greece, strengthening the presence in the water sector and accelerating growth in the field of energy efficiency, with a strong commitment to the achievement of EU climate goals.Italgas reiterates its commitment to the consolidation of the gas distribution sector in Italy with the aim of multiplying synergies to ensure important benefits for households and businesses in terms of safety, efficiency, service quality, end-use decarbonization and costs.The use of artificial intelligence within all the Group’s activities will also enable it to drive a new phase of digital transformation by accelerating the path of ecological transition. The Group will continue to benefit from a sound and efficient financial structure, with a commitment to maintain its current credit rating. Expected operational synergies and efficiencies allow for double-digit earnings growth over the plan period. Therefore, it was possible to increase the floor of the dividend policy to 2026 by raising the growth guarantee to 5 percent per annum over the 2023 DPS of 0.352 euros per share, while confirming the 65 percent payout. “The 2024-2030 strategic plan will go down in Italgas history for creating the European champion in gas distribution, further strengthening the commitment to the digital transformation of infrastructure, to the benefit of the entire country. The new size of the Group combined with innovation and digital transformation is the key determinant to ensure the achievement of energy transition targets, security of supply, and sustainability of energy costs for people and businesses,” says Italgas CEO Paolo Gallo.”The 15.6 billion in investments will give a further, strong impetus to the growth path: the largest share is once again earmarked for the development, digitization and repurposing of the gas distribution network in both Italy and Greece,” he adds. “The commitment to the widespread use of Artificial Intelligence, will allow us to enter a new season of digital transformation. Digital transformation,” the CEO stresses, “which remains the main strategic lever also to strengthen our activities in the water sector and in the energy efficiency sector. With 750 million, we will continue to work to strengthen our role as a key player in water – which suffers from the lack of adequate smart investments on networks – and to grow in energy efficiency as an indispensable tool to achieve the objectives of the energy transition. The numbers in this Plan, average annual growth of 13 percent in Ebitda and profit to 2030, demonstrate how the extraordinary capabilities of the women and men of Italgas and 2i Rete Gas can create value for shareholders and all stakeholders by leveraging efficiency, innovation and sustainability,” Gallo concludes.Italgas expects that the industrial integration with 2i Rete Gas, will offer multiple opportunities for value creation. Synergies and cost efficiencies, combined with artificial intelligence, are expected to reach 200 million by 2030, compared to the 2023 combined cost base, mainly driven by the extension of Italgas’ best practices and the expected benefits of digitization and the use of AI extensively in the new Group. In addition to this, revenues will increase due to the incremental investments required for the complete digitization of the 2i Rete Gas network (0.8 billion in plan arc) with an expected revenue contribution in 2030 of 80 million.As a result of these actions and investments, revenues are expected to reach about 3.6 billion with an Ebitda of 2.8 billion in 2030.This results, over the span of the plan, in an average annual growth rate (CAGR) of Ebitda and profit of about 13 percent and of earnings per share, considering the capital increase, of about 10 percent.Compared to the 2023-2029 business plan, the accretion of earnings per share (EPS) will be positive as early as 2026 until it reaches about 15 percent in 2029. The planned financial structure for the acquisition of 2i Rete Gas and significant cash generation allow the net financial position to remain under control, in line with the goal of maintaining the current credit rating. In fact, the debt to RAB ratio is expected to peak in 2025, following the closing of the transaction, and return to the 65 percent area, by 2028. For 2024, which is not impacted by the acquisition, the guidance approved last May 30 is confirmed, with technical investments of about 0.9 billion and adjusted revenues of about 1.8 billion, with adjusted Ebitda between 1.32-1.35 billion and adjusted Ebit of 0.8 billion. Excluding the impacts of IFRS 16, net debt at the end of 2024 is confirmed to be expected at about 6.6 billion, with leverage of 63 percent. In light of the expected results, the dividend policy is confirmed through 2026, with an increased floor to reflect the high level of confidence in the expected results and with the aim of ensuring that shareholders receive attractive, sustainable remuneration and the opportunity to continue to benefit from the expected growth. The new policy calls for the distribution of a dividend equal to the greater of the amount resulting from the 2023 DPS of €0.352 increased by 5 percent annually and the DPS equal to 65 percent of adjusted net income per share.
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(ITALPRESS).
