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A2A, results as at 30 september 2024

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EXCELLENT ECONOMIC-FINANCIAL PERFORMANCE CONFIRMED
2024 GUIDANCE REVISED UPWARDS FOR EBITDA AND ORDINARY NET PROFIT
CAPEX IN STRATEGIC INFRASTRUCTURES FOR THE ECOLOGICAL TRANSITION CONTINUE
PRODUCTION MIX WITH A PREVALENCE OF ENERGY FROM RENEWABLE SOURCES
CONFIRMED COMMITMENT TO SUSTAINABLE FINANCE

  • EBITDA at 1,804 million euro: +33% compared to the first nine months of 2023 (1,357 million euro).
  • Net profit at 713 million euro: +68% compared to the same period of 2023 (425 million euro).
  • Revenues of 9,097 million euro: -17% compared to the first nine months of 2023 mainly due to the contraction in energy commodity prices.
  • Capex of 898 million euro, +13% compared to the first nine months of the previous year, devoted to the development of photovoltaic plants, the upgrading and efficiency of networks to support decarbonisation, the increase in the flexibility of generation plants and the recovery of materials and energy.
  • Net Financial Position at 4,011 million euro (4,683 million euro at 31 December 2023). Excluding changes in the scope of consolidation during the period and the hybrid bond issuance, the NFP amounted to 4,688 million euro thanks to an operating cash flow that financed both capex and dividends.
  • NFP/rolling EBITDA ratio at 1.7x; excluding the impact of the hybrid bond, with a 100% equity treatment for
    IFRS purposes, the ratio would be at 2.0x, down compared to 31 December 2023 (2.4x).
  • Share of sustainable debt in the Group's total gross debt at 77% (67% at 30 September 2023). A new bank loan in green format - use of proceeds has been signed to support capex in the circular economy.
  • Upward revision of guidance: The Group will target an EBITDA of between 2.28 and 2.32 billion euro for 2024 and a Group Net Ordinary Profit of between 0.80 and 0.82 billion euro based on the excellent results of the first nine months, in particular the solid performance of the Generation & Trading and Market Business Units.

Energy transition

  • The generation of energy from renewable sources (hydroelectric, wind and photovoltaic) represents 55% of production and is equal to 4.9 TWh.
  • In the capacity market auction called by Terna for the 2025 delivery year, A2A was awarded the entire portfolio of existing capacity offered for a total of approximately 4.6 GW, with a technological mix that includes gas and renewable source plants, to support the energy transition. The economic contribution for 2025 is more than 60 million euro higher than assumed in the 2024-2035 Strategic Plan.
  • The first industrial partnership in Italy for the recovery of heat from Data Centers intended for district heating has been set up: in collaboration with DBA Group and Retelit, the project will make it possible to serve 1,250 additional households per year, allowing energy savings of 1,300 tons of oil equivalent (TOE) and avoiding the emission of 3,300 tons of C02.
  • Bergamo's district heating network has been expanded without the use of fossil fuels thanks to the agreement for the recovery of heat generated by the Rea Dalmine waste-to-energy plant, which will make it possible to bring clean heat to the city and heat up to 11 thousand additional households with waste heat.
  • An agreement has been signed with SEA for the construction of a photovoltaic system inside Milan Linate airport capable of producing over 10 GWh of renewable energy per year: this agreement further strengthens the partnership focused on the decarbonisation of Milan's airports, launched in 2022 following the acquisition of SEA Energia (now A2A Airport) by A2A.

Sustainability

  • Carbon dioxide emission factor (Scope 1&2) is down 33% compared to the value of the first nine months of 2023.
  • The investments eligible for the purposes of European Taxonomy are equal to 73%.

The Group's commitment to sustainable finance continues: after successfully issuing the first l subordinated perpetual hybrid bond in green format and subscribing to the 600 million euro bridge loan in pool, not yet disbursed, in green format to finance the acquisition of assets relating to the electricity grid, in September 2024 A2A successfully signed a new bank loan in Green format - use of proceeds to support investments in the circular economy.

The Board of Directors of A2A S.p.A. has examined and approved the Quarterly Report as at 30 September 2024

Milan, 12 November 2024 - The Board of Directors of A2A S.p.A. met under the chairmanship of Roberto Tasca and examined and approved the Quarterly Report as at 30 September 2024.

"The excellent economic and financial performance achieved in the first nine months of 2024 has allowed us to proceed more quickly with the investments envisaged in our Plan. The results of this third quarter further confirm the consistency of our strategy: we have achieved an unprecedented net profit of over 700 million euro, exceeding what was recorded in the whole of 2023," comments Renato Mazzoncini, CEO of A2A. "With these results, we have been able to revise upwards the guidance for 2024, with an expected EBITDA between 2.28 and 2.32 billion euro and a Group net ordinary profit between 0.80 and 0.82 billion euro. These are important objectives that allow us to support competitiveness and accelerate the path taken for the development of strategic infrastructures for the ecological transition of the country"

The results of the first nine months of 2024 of the A2A Group confirm excellent economic and financial performance with an increase in operating margins, driven by a significant increase in the production of energy from renewable sources as a result of high hydraulicityand the positive contribution of the energy retail sector, together with an improvement in the financial structure, with a decrease in the NFP/EBITDA ratio.

The excellent operating results were achieved thanks to the strategies to optimise the integrated production portfolio, the hedging carried out and the commercial development actions in an energy context of lower volatility compared to the previous year, characterised by falling prices with an average PUN in the 9 months of 102.0 €/MWh (down 21%) and the average cost of gas at the PSV at 33.6 €/MWh (down 21.6%).

Contacts:
Giuseppe Mariano
Head of Media Relations, Social Networking and Web

Silvia Merlo - Silvia Onni
Press Office
ufficiostampa@a2a.it
Tel. [+39] 02 7720.4583

Marco Porro
Head of Investor Relations
ir@a2a.it Tel. [+39] 02 7720.3974

 

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