Focus on regulated businesses: water, electricity and environment. With these objectives, Acea's board of directors approved the new business plan valid for the years 2024-2028 and for which he dropped his biggest ace ever: investments total for 7,6 billion euros at a rate of around 1,5 billion per year, compared to around one billion in the period 2020-2023.
Dividends growing by 4% per year until 2028. For 2024 0,88 euros per share
For shareholders, Acea expects dividends to increase by 4% per year between 2023 and 2028, for a total distribution of over one billion euros. Acea also announced the data for the 2023 financial year, which closed with a recurring net profit growing by 22%, and the board of directors will propose the distribution of a dividend 2024 (relating to the 2023 financial year) of € 0,88 per share, an increase of 4% compared to the amount assigned last year (0,85 euros). The coupon will be detached on 24 June 2024, with payment from 26 June.
Palermo: increasingly sustainable and resilient infrastructure
The industrial plan “outlines the strategy that the group intends to implement over the next five years. The plan we have called “Green Diligent Growth” provides for significant growth and focus on three regulated businesses to make our infrastructure increasingly sustainable and resilient, with 7,6 billion euros of investments to support the country's development" said the CEO of Acea Fabrizio Palermo. “The strong one discipline on costs and investments it is a fundamental aspect of our strategy to support cash generation combined with an optimization of the financial structure and capital allocation. The plan is characterized by stable growth in investments and RAB which will translate into solid growth in economic-financial results and an increasingly attractive remuneration policy for shareholders".
Net profit: an annual growth rate of 5% is expected in the plan
Over the course of the plan, Acea provides for a growth annual average of over 5% per EBITDA reaching 1,8 billion euros at the end of 2028 (of which 90% from regulated activities), compared to 1,39 billion in 2023 (+29%). “The increase in the result is mainly attributable to organic growth and operational efficiency” reports Acea.
The Net income it is expected to increase at an average annual growth rate of 5%, going from 294 million in 2023 to 350 million in 2026 and 375 million in 2028. The RAB (Regulatory Asset Base) in 2028 is indicated at 10,5 billion euros, an increase of 42% compared to 2023 with an average annual growth rate over the plan period of more than 7%. The ratio between net financial position and gross operating margin is expected to decline from 3,5x in 2023 to 3,1x in 2028.
The accelerator on the water business
Moving on to individual sectors, the plan provides for a further strengthening of the water business, in all sectors served, with the aim of increasing the EBITDA which is expected to constantly increase (+7% average annual growth over the plan period), driven by organic growth with the bar which will go from 0,7, 2023 billion in 2028 to one billion in XNUMX. In electric, however, where the company aims to guarantee the resilience of the network and increase the quality of the service, the ebitda will grow at an average annual rate of 2% thanks mainly to development investments, from 0,5 billion in 2023 to 0,6, 2028 billion in 3,7 with an estimated RAB of XNUMX billion euros at the end of the plan. In the end, the environment with EBITDA growing from 84 million in 2023 to 155 million in 202. The investments, totaling almost 500 million, will allow the increase in waste treatment capacity.
In 2023 alone, revenues drop by 10%, but recurring net profit grows by 22%
As for 2023 alone, the company listed at MidCap saw a drop revenues by 10% to 4,65 billion compared to the 5,14 billion obtained the previous year, mainly "as a result of the sharp decline in prices on the energy markets" says a note.
Instead, the gross operating margin rose by 7%, going from 1,31 billion to 1,39 billion euros, thanks to the greater contribution of the regulated businesses (+10% Acqua Italia and +7% Reti & Smart Cities) and the commercial area and efficiencies operations achieved, factors which more than compensated for the negative impact of the energy scenario, says a note.
The Net income however, it grew (excluding the share of third parties) by 5% to 293,91 million euros compared to the 279,73 million recorded in the previous year. L'recurring net income increased by 22% to 280 million euros. Earnings per share were 1,38008 euros.
“The greater focus on cost and investment management, together with organic growth, more than compensated for the greater amortization linked to the investments made and the increase in financial charges caused by the increase in interest rates” reported the management.
At the end of 2023 lnet debt of Acea amounted to 4,85 billion euros, compared to 4,44 billion at the beginning of the year, following the dynamics of the investments made, the dynamics of the energy price and the actions to contain working capital. In the whole of 2023, the company made investments of 1,14 billion euros (in line with the previous year), of which approximately 88% were allocated to regulated activities.
Regarding the financial targets for 2024, management expects an increase of EBITDA between 3% and 5% compared to 2023, while investments will amount to approximately 1,5 billion euros. The net financial debt/EBITDA ratio should be at 3,5x.
