In This Article:
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Net Income Adjusted Level: Increased by more than 12% despite higher financing costs and taxes.
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Debt Reduction: Reduced by more than EUR 200 million in the first quarter.
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CapEx: Reached EUR 165-166 million, slightly higher than the first quarter of 2024.
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EBITDA Growth: Increased by about 6% compared to the first quarter of last year.
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EBIT Growth: Increased by 17% compared to last year.
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Net Financial Expenses: Increased by EUR 7.5 million.
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Operational Cash Flow: EUR 412 million, allowing a reduction in indebtedness of more than EUR 200 million.
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Net Debt: Reached EUR 6.56 billion including IFRS 16, or EUR 6.47 billion excluding IFRS 16.
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Cost of Debt: Around 1.7% for the quarter.
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Guidance for 2025: Adjusted revenues approximately EUR 2.45 billion; EBITDA between EUR 1.8 and EUR 1.85 billion; EBIT between EUR 112 and EUR 116 billion; Technical investment around EUR 1.2 billion; Net debt expected to be below EUR 11 billion by year-end.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Italgas SpA (ITGGF) successfully closed the acquisition of 2i Rete Gas ahead of schedule, marking a significant milestone for the company.
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The company reported a 12% increase in net income at the adjusted level, demonstrating resilience despite higher financing costs and taxes.
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Debt was reduced by more than EUR200 million in the first quarter, benefiting from solid cash flow from operations.
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The company is on track with its digital transformation, nearing completion of its digital asset projects.
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Energy efficiency business is showing growth again, with an increase in EBITDA margin, indicating a stable and solid business model.
Negative Points
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The WACC approved by the regulator is 20 basis points lower than what was assumed in the strategic plan, impacting financial expectations.
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Energy consumption increased by nearly 5% due to lower winter temperatures, leading to higher gas distribution and CO2 emissions.
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The company faces challenges with the antitrust disposal process, which is expected to complete by October 2025, with impacts materializing in early 2026.
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There is uncertainty regarding the timing of concession tenders, particularly for the Rome concession, which remains unresolved.
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The integration of 2i Rete Gas involves complexities, such as terminating existing contracts for external services, which may delay cost synergies.
Q & A Highlights
Q: Can you provide more details on the contribution of 2i Rete Gas to the 2025 guidance and the synergies expected? A: The contribution of 2i Rete Gas is positive, and the deal is expected to be EPS accretive in 2025. We anticipate around EUR10 million in synergies, which are ahead of schedule due to the merger of Italgas Rete and 2i Rete Gas by July 1, 2025. The synergies are expected to be more than just the sum of the parts.