Italgas: profit and margins rise. Gallo: 'We also open 2024 under the banner of solidity'

Awaiting the final outcome of the game on the acquisition of 2i Rete Gas, on which the group announced yesterday the start of exclusive negotiations aimed at filing a binding offer, Italgas postpones the presentation of its strategic plan (which was scheduled for 12 June) and in the meantime archives the first quarter with a net profit of 125.3 million euro (+12%), while the bar attributable to the group stands at 117.6 million, up 13.5% from 103.6 million in the same period of 2023. Ebitda, at EUR 325.7m (+9.6%) and ebit, at EUR 192.7m (+11.7%), also rose, while total revenues, at EUR 431.3m (-10.1%), slowed down as a result of the contraction of energy efficiency activities related to the superbonus, on which a further government clampdown arrived.

"The results achieved in this first quarter allow Italgas to start 2024 under the banner of solidity. The economic-financial indicators have shown excellent growth, in many cases double-digit growth," commented CEO Paolo Gallo, who also emphasised the more than EUR 160 million already invested, "which have made it possible to provide further impetus to the development and digital transformation of networks and plants, in Italy and Greece, in support of the ecological transition to net zero. With the commitment of all Italgas people and the entire chain of suppliers," the CEO continued, "we continue to work to constantly improve the technologies that will allow us to accelerate the decarbonisation of consumption and energy saving in support of the sustainable development of the territories and the growth in value of the group.

Returning to the numbers, cash flow from operating activities amounted to EUR 342.2 million, an increase of EUR 235 million compared to the previous year, since the temporary phenomena that had impacted the first quarter of 2023 were reabsorbed, the group explained in the note issued after the board meeting. Cash flow from operating activities made it possible to fully finance investments, generating a free cash flow, before M&A operations, of EUR 140.8 million.

Gross financial and bond liabilities as at 31 March 2024 amounted to €7,196.8 million (€6,920.3 million as at 31 December 2023) and related to bonds (€5,241.7 million), European Investment Bank/EIB loan agreements (€894.0 million), bank borrowings (€966.9 million) and IFRS 16 liabilities (€94.2 million).

As mentioned, on Tuesday after the closing of the stock exchanges, Italgas announced that it had received from F2i and Finavias, the consortium that brings together Apg Asset Management and Ardian, the go-ahead for the opening of an exclusive period to carry out due diligence on the accounts of 2i Rete Gas aimed at a binding offer for 100% of the company. Gallo's group, assisted by Jp Morgan and, on the legal side, Legance-Avvocati Associati, clarified in a statement that, in the event of a positive outcome to the negotiations, it will meet the necessary requirements through a bridge loan guaranteed by Jp Morgan, which will be refinanced through a combination of several instruments. The contours of which will be defined upon the successful outcome of the negotiations. Which, if the nuptials go through, will lead to the birth of the world's leading operator in gas distribution, since the deal concerns the leading Italian group by market share (35 per cent) and its main competitor, which controls a 20 per cent slice.