4,5 billion euros of investment (+12,5%), unchanged dividend policy and focus on digitization and extension of the network. These are the cornerstones of the strategic plan to 2025 approved by the Italgas board of directors.
“This plan has like main focus is the company's digital transformation. The innovation that is contaminating our sector will create two categories of companies: frontier ones and followers. Today Italgas is a leader in terms of history and size, tomorrow, thanks to investments in digital technology, it will become a 'frontier company', a leader at European level. At the end of this long journey, Italgas will have one of the most technologically advanced networks, with the application of cutting-edge digital solutions,” he explained. Paolo Gallo, managing director of Italgas
ITALGAS: INVESTMENTS ON THE RISE
Going into detail, Italgas expects to implement an investment plan of 4,5 billion, 500 million more compared to the previous plan. 1 billion will be allocated to innovation technology and digitalisation, of which 540 million for the "replacement of 5.300 intermediate pressure regulation systems (GRF and IRI) with as many digital devices and the upgrade of another 2.000 similar systems", explains the company.
More 500 million (+11%) will go to Sardinia, for the continuation of the plan for the construction of the natural gas distribution network, while 350 million will be used for M&A operations in order to encourage growth through external lines. In this context, Italgas underlines that it has achieved the targets set by the previous plan, having acquired a network equal to 4.600 km of networks for an enterprise value of 335 million and a rab of 315 million. A further 350 million are the investments planned by Toscana Energia, owner of 104 concessions for the distribution of natural gas, manages a network of approximately 8 km.
Finally, 2,1 billion euros will be used for "network development and improvement activities, also including the replacement of the cast iron pipelines and the modernization of the fully depreciated networks”, continues Italgas.
ITALGAS: THE ESTIMATES
For 2019 Italgas expects around 700 million in technical investments, while speaking of financial parameters, the company expects revenues of 1,2 billion, an Ebitda between 840 and 860 million and an Ebit between 460 and 480 million.
By extending the time horizon, the realization of the investments envisaged in the plan, accompanied by the consolidation of Toscana Energia, will do grow consolidated RAB (regulated assets) at an average compound annual rate of approximately 4,7% compared to 6,4 billion euros at the end of 2018 to reach around 8,9 billion euros at the end of the plan, without considering the completion of the area tenders. With the latter, however, the growth will be 7,1% and the Rab will reach over 10 billion.
Finally, the company expects, by 2025, efficiencies for 160 million also thanks to the reduction of operating costs.
ITALGAS: DIVIDENDS
Italgas, reads the company's note “undertakes to guarantee the shareholders a attractive, growing and sustainable dividend policy”. In detail, until 2020, the distribution of a coupon equal to the higher of the amount resulting from the 2017 dividend per share (€0,208) increased by 4% per annum and that equivalent to 60% of the consolidated net profit per share was confirmed. .
"In the light of the results achieved in recent years and the growth and development activities undertaken - commented the CEO, Paolo Gallo - this plan revises all the main targets increased with the confirmation of the current dividend policy which has proved to be particularly profitable for our shareholders”.
THE TITLE
In Piazza Affari, despite the fact that the plan exceeded analysts' expectations, the Italgas stock it lost 1,2% to 5,812 euros, weighed down by the weakness of oil prices which is causing sales on energy sector stocks: Eni -1,1%, Saipem -1,9%, Tenaris -2%.
