Italgas has communicated the 2019 financial results. For the third consecutive year since its return to the Stock Exchange, the group led by Paolo Gallo shows growing results, focusing everything on innovation and digitization. As for the Stock Exchange, the moderate decline continues for the most important natural gas distributor in Italy and in third place in Europe. If we analyze the performance of the share compared to the reference index, Italgas contains the losses below four percentage points (-2,98%), maintaining a relatively positive strength relative to the index.
Returning to the numbers, the company recorded revenues up by 6,8% compared to the previous year, for a total of 1.257,9 million euro. The gross operating margin increased from 839,5 million to 907,5 million euros (+7,8%), following a slight increase of 3,5% in operating costs.
Net income also increased, which marks a growth of 9,4%, equal to 345,2 million, thanks to net income from equity investments, equal to 100,8 million mainly due to the recalculation of the value of the equity investment in Toscana Energia.
Again in 2019, Italgas' operating activities generated a cash flow of 697,2 million euros, while technical investments amounted to 740,0 million euros (+41,6% compared to 2018) and were dedicated to the development, renewal and digital transformation of the networks. In particular, in Sardinia, the construction of the distribution networks continues according to plan: in 2019, the length of the network laid was approximately 440 km, reaching the 590 km laid at present, against which they have already been exceeded the 18 requests for new connections.
The largest project is the smart meter installation plan, which is expected to be completed by 2020. It involves the digital transformation of the entire managed network, bringing the number of smart meters installed by the end of the year to 6,76 million last.
“2019 was the third consecutive year of growth – Paolo Gallo, CEO of Italgas commented as follows – Adjusted Ebit and Adjusted net profit respectively marked +13,2% and +9,4%, improving all the guidance communicated during the year and capital expenditure increased by over 40% compared to the year previous to a value more than double the profit for the period – he continued – Digitization, growth and sustainability will continue to guide us in the choices and challenges we will have to face”.
Because, for the first time, the company has entered the Dow Jones Sustainability Index World, which globally evaluates the ability of companies to deal with the major issues of sustainability.
With reference to investments for the current year, the company expects to continue its plan aimed mainly at implementing the projects for the digitization of the network, the installation of "smart" meters and methanization in Sardinia, in addition to the usual maintenance and development of managed networks.
Furthermore, in line with the objectives of the Strategic Plan, which took place during 2019, it is expected in 2020 the completion of further development initiatives for external lines, which will make it possible to strengthen the territorial presence and the growth of the business perimeter.
In the light of the results, the Italgas Board of Directors has proposed the distribution of the 2020 dividend for a total of 0,256 euro per share, an increase compared to the amount distributed in 2019 by 9,6%. Payment of the dividend for the 2019 fiscal year is expected to start on May 20, with ex-dividend date May 18, 2020.
