Investments increase, the coupon doubles and the share takes off on the Stock Exchange (+2,77%, to 1,076 euros), achieving the best increase in the Ftse Mib at the start of the session. This morning A2A, a multi-service company in Milan and Brescia, lifted the veil on the new 2015-2019 business plan, cashing in on the market promotion.
THE DOUBLING OF DIVIDENDS IN 5 YEARS
The company has announced a growing dividend policy, with cash generation that will sustain the increase until the coupon doubles at the end of the plan. For this year and for 2016, however, the 2014 dividend (0,0363 euro) was confirmed, in turn increased by 10% compared to 2013. A "significant" growth is expected for the following years.
ESTIMATIONS ON EARNINGS (+100%) AND EBITDA (+32%) IN 2019
In 2019, net profit is seen at 400 million (200 million this year). The plan also estimates a "significant" growth in Ebitda, which will reach 1,35 billion in 2019 (+32%) and a further reduction in debt, which will amount to around 2,5 billion at the end of the period, in reduction of over 800 million compared to 2014. The debt/Ebitda ratio should therefore drop from 3,3 to 1,9.
INCOME INVESTMENTS OF 2,1 BILLION
The company also expects to deploy investments of 2,1 billion euros at group level over five years, an increase of 40% compared to the previous period, with the aim of relaunching and redesigning the group. A2A aims to reduce exposure to the thermoelectric sector with a 40% cut in thermoelectric capacity (a measure that will reduce costs by 21 million a year), but at the same time intends to relaunch investments in the key areas of the environment, networks and the free energy market. For example, 35 million euros will be earmarked for making existing Combined Cycles more flexible.
According to the company estimates, the restructuring of traditional generation will produce about 148 million incremental EBITDA. The relaunch of the environment, on the other hand, should contribute to a growth in EBITDA of around 54 million, while another 53 million are expected from the expansion of the retail segment of the energy business, with investments aimed at strengthening sales channels to triple the customers served both in the gas and electricity markets in the period 2015-2019.
THE CEO: "A2A WILL GROW WITH ITS OWN RESOURCES"
The new plan "aims to gradually reposition A2A in a strategic quadrant where it will return to growth and with greater profitability, all by counting on its own resources and maintaining great economic-financial balance", commented the company's managing director, Luca Valerio Camerano.
