In This Article:
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Adjusted EBITDA Growth: Increased by 14.1%, driven by gas distribution in Italy and Greece, and the water business.
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Adjusted Net Income Growth: Grew by more than 15% year-over-year.
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Operating Cash Flow: Nearly doubled to EUR 1.1 billion.
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CapEx: Nearly EUR 900 million, slightly lower than 2023 but in line with guidance.
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Revenue Stability: Maintained steady revenues despite a significant reduction in energy efficiency revenues.
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Dividend Proposal: EUR 0.406 per share, over 15% higher than the previous year.
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Net Debt: Increased by EUR 128 million, reaching EUR 6.76 billion.
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Leverage: Below 6% at the end of the year.
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RAB: Reached EUR 10 billion at the end of 2024.
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Net Profit: Exceeded EUR 0.5 billion, with an increase of more than 15%.
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Tax Rate: 24.8%, compared to 20.2% in 2023.
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Debt Composition: 85% fixed rate, 15% floating.
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Average Cash Cost of Debt: 1.6%.
Release Date: February 12, 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) achieved a 14% growth in adjusted EBITDA, driven by gas distribution in Italy and Greece, and contributions from the water business.
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The company reported a significant milestone with over EUR1 billion in cash flow, nearly doubling the previous year's result.
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Italgas SpA (ITGGF) announced a proposed dividend of EUR0.406 per share for 2024, a 15% increase from the previous year, reflecting a strong dividend policy.
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The company has made substantial progress in sustainability, with a 21% reduction in Scope 1 and 2 emissions compared to 2023, and is ahead of its 2030 targets.
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The acquisition of 2i Rete Gas is expected to create a European gas distribution champion, unlocking significant value for stakeholders.
Negative Points
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The company faced a significant reduction in revenues from the energy efficiency sector, which was anticipated but still impacted overall revenue stability.
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There were adjustments in the financial results due to regulatory resolutions, including a EUR24 million negative impact from the cancellation of safety bonds.
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Net financial charges increased by EUR22 million due to the impact of new bonds issued in 2024, reflecting a challenging interest rate environment.
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The company is appealing a regulatory decision on the WACC, indicating potential regulatory challenges and uncertainties.
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The expiration of the ROM concession led to a EUR15 million decrease in D&A, highlighting potential future impacts from concession expirations.
Q & A Highlights
Q: Will the patent box tax benefit continue in 2025 and beyond? Also, any updates on consultations with ARERA regarding the RAB deflator? When can we expect earnings guidance for 2025? A: Unfortunately, 2024 is the last year for the patent box benefit, which covered the year 2021. Regarding the RAB deflator, consultations are ongoing, but we don't have a timeline for a final decision. As for 2025 earnings guidance, it will be issued with the first-quarter results, as the strategic plan update is scheduled for September-October.