A2A, investments of 22 billion in the plan to 2035

A2A presents its new 2024-2035 strategic plan, which sees a growth in investments reaching 22 billion euros over 12 years. In detail, a note explains, of these 22 billion, 6 will be allocated to the circular economy and the remaining 16 to the energy transition. More than 70 per cent of the investments envisaged by 2030 are authorised or already in progress, and 78 per cent of the investments are eligible for the EU taxonomy regulation. On the dividend policy side, annual growth of at least 3% is expected over the plan period. RAB electricity grids are expected to reach EUR 3.4 billion at the end of 2035, thanks to investments and the expansion of the operating perimeter, with an average annual growth of more than 10%. In addition, ebitda is expected to be EUR 2.2 billion in 2026 and higher than EUR 3.2 billion at the end of the plan period, ordinary net profit will be EUR 0.6 billion in 2026 and higher than EUR 1 billion in 2035, while the pfn/ebitda ratio is expected to be lower than 2.8 over the plan period.

A2a closed 2023 with a net profit of 659 million euro, up 64% from 401 million in 2022. Revenues, a note explained, amounted to 14,758 million (-36%) compared to 2022 as a result of the bearish dynamics of commodity prices, ordinary net profit was 635 million (+67%), ordinary EBITDA was 1,930 million (+30%), EBIT stood at 1,017 million (+49%), and organic investments amounted to 1,376 million (+11%). The net financial position amounted to EUR 4,683m (EUR 4,258m as at 31 December 2022)corresponding to 2.4 times the Pfn/Ebitda ratio, down from 2.8 times in 2022. The board of directors decided to propose to the shareholders' meeting a dividend of EUR 0.0958 per share, up by 6% compared to the dividend distributed last year (EUR 0.0904). As far as energy transition is concerned, worthy of note are the acquisitions of corporate vehicles for the development of new photovoltaic parks in Friuli Venezia Giulia and Veneto for a total of 80MW; 428 GWh of renewable energy produced from wind power, +71% compared to the previous year, thanks to the acquisitions made in 2022 and the start-up of the Matarocco plant; and the growth of the customer base in the energy retail segment: +420 thousand compared to 31 December 2022.

'We will be able to create sustainable value by ensuring financial solidity and returns to our shareholders'. With these words A2A CEO Renato Mazzoncini commented on the new strategic plan to 2035, a date, the top manager explained, that represents "a key year in Europe for the ecological transition". The group, he emphasised, 'has demonstrated its ability to achieve important industrial and economic objectives, ahead of what was envisaged in the first 10-year plan presented in January 2021. On the strength of these results, we have chosen a broader horizon, to define an intermediate goal with respect to the continent's net zero at 2050. Our goal is to continue to contribute to the country's decarbonisation process through concrete investments to support the electrification of consumption, the development of renewables, the closing of the waste cycle, and improving the efficiency of the water cycle'. A passage also on the recent transaction with Enel that, according to the CEO, 'will allow us to reach a RAB of 3.4 billion in 2035, consolidating our position as the second Italian operator and among the first in Europe for distributed electricity'.

A2A intends to increase its customer base from 3.5 million in 2023 to over 5 million in 2035 for gas and electricity. This is what emerges from the new 2024-2035 strategic plan in which it is specified that to support the growth of the customer base, A2A can count on the success of past acquisition campaigns, a multi-channel strategy, a consolidated reputation and customer satisfaction, elements that will allow it to obtain an increasing market share from 6% in 2023 to over 9% in 2035. The company also aims to strengthen its national leadership in the environmental sector by upgrading and building new infrastructures for municipal and industrial waste, reaching more than seven million tonnes by 2035 (up from 5.5 million in 2023) thanks to around four billion in new investments.