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A2A, results as at 31 march 2024

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CONTINUOUS IMPROVEMENT OF ECONOMIC AND FINANCIAL INDICATORS AND CUSTOMER BASE
2024 EBITDA AND ORDINARY NET PROFIT GUIDANCE REVISED UPWARDS
INVESTMENTS IN STRATEGIC INFRASTRUCTURES FOR THE ECOLOGICAL TRANSITION CONTINUE
ENERGY PRODUCED FROM RENEWABLE SOURCES INCREASED
THE GROUP'S COMMITMENT TO SUSTAINABLE FINANCE HAS BEEN CONFIRMED

  • EBITDA at €703 million: +40% compared to the first quarter of 2023 (501 million euros).
  • Net profit at €294 million: +70% compared to the same period of 2023 (€173 million).
  • Revenues of €3,425 million: -33% compared to the first three months of 2023 mainly due to the contraction in energy commodity prices.
  • Capex of €220 million, in line with the first quarter of the previous year, for the development of photovoltaic plants, the strengthening and efficiency of networks to support decarbonisation and the circular use of resources.
  • Net Financial Position: €4,755 million (€4,683 million at 31 December 2023). Net of changes in the scope of consolidation for the period, amounting to -€18 million, the NFP grew by €72 million, after investments of €220 million. The NFP/EBITDA rolling ratio was 2.2x, down from 2.4x at 31 December 2023.
  • Growth in the customer base in the energy retail segment: +454 thousand compared to March 31, 2023 (+15%).
  • Ratio of sustainable debt to the Group's total gross debt at 75% (70% at 31 December 2023).
  • Upward revision of guidance: The Group will target an EBITDA of between €2.08 and €2.12 billion for 2024 and a Group Net Ordinary Profit of between €650 and €670 million based on the good results of the first quarter and the solid performance expected

Energy transition

  • A sale and purchase agreement has been signed for the branch of the electricity grid managed by e-distribuzione in some areas of Lombardy, specifically in the provinces of Milan and Brescia. For A2A, the transaction – which will be completed by 31 December 2024 – will increase the number of electric PODs installed in 2023 by approximately 70%, from approximately 1.3 million to approximately 2.1 million, in an area of Lombardy where the Group is already present in electricity distribution, thus enabling important industrial synergies.
  • The new flue gas purification line of the Brescia waste-to-energy plant has been inaugurated, an innovative technology thanks to which available energy is reused and waste heat is recovered, contributing to the decarbonisation of the city's district heating.
  • Acquired 70% of Parco Solare Friulano 2 which has obtained the permit for the construction and operation of a photovoltaic system with an authorized capacity of 112.1 MWp.
  • Green energy production amounted to 1.3TWh, +83% compared to the same period last year, thanks to greater hydraulics and the contribution of the Matarocco wind farm.

Sustainability

  • Direct carbon dioxide emissions (Scope 1 + Scope 2) down 43% compared to the value of the first quarter of 2023.
  • 64% of eligible investments for the purposes of the European Taxonomy.
  • Ratio of sustainable debt to the Group's total gross debt at 75% (70% at 31 December 2023).
  • In January, A2A joined the International Capital Market Association (ICMA), which reinforces the Group's commitment to sustainable finance.

The Board of Directors of A2A S.p.A. has examined and approved the Quarterly Report as at 31 March 2024

Milan, 14 May 2024 - The Board of Directors of A2A S.p.A. met today and, under the chairmanship of Roberto Tasca, examined and approved the Quarterly Report as at 31 March 2024.

"The results of this first quarter of 2024 confirm the continuous improvement of the Group's economic and financial indicators. The performance achieved thanks to the growth of renewables - in particular hydroelectric production - and the diversification of the businesses have allowed us to revise upwards the guidance, with an expected EBITDA between €2.08-2.12 billion euros and a net ordinary profit of the Group between 650-670 million euros" comments Renato Mazzoncini, CEO of A2A "In these first few months, an agreement was concluded for the acquisition of a branch of the electricity grid in Lombardy, an investment in highly populated and industrialized areas, which will allow the RAB to increase to 3.4 billion in 2035. The new flue gas purification line of the Brescia waste-to-energy plant was also inaugurated, a further important contribution to the decarbonisation of the city. The good performance of the Market BU and the growth in the number of our customers are confirmed with the awarding of the auctions of the gradual protection service for micro-enterprises and commercial development. These results have been achieved thanks to the commitment and dedication of our people who make the objectives of our Business Plan a reality".

In the first quarter of 2024, A2A continued to record excellent economic and financial results, showing significant growth compared to the same period of the previous year, penalized by the persistence of drought and instability in the energy markets that had marked 2022.
In the first three months of the year under review, the average value of the PUN (Single National Price) Base Load decreased by 41.6% compared to the same period of 2023 (from 157 €/MWh in 2023 to 91.9 €/MWh in 2024) and the average cost of gas at the PSV decreased by 48.9% (from 57 €/MWh in 2023 to 29 €/MWh in 2024).
In this context, characterized by a significant contribution from hydroelectric production and downward trends in energy prices, the Group achieved significant increases in operating margins by optimizing the integrated electricity production portfolio and adopting effective hedging strategies and profitable business development actions.

Main Economic Indicators

Million euros 3M2024 3M 2023 Restated Δ Δ%
Revenues 3,425 5,133 -1,708 -33%
Gross Operating Margin – EBITDA 703 501 202 40%
Net operating Income – EBIT 465 289 176 61%
Net Profit 294 173 121 70%

 

In the period under review, Group revenues amounted to €3,425 million, down 33% compared to the same period of the previous year (€5,133 million). More than 90% of the change is attributable to the fall in energy prices and to a very limited extent to lower volumes sold and brokered on wholesale markets, partly offset by higher quantities sold in the retail sector.

In line with the trend in revenues and the dynamics related to the commodities market, operating costs amounted to €2,507 million, recording a significant reduction compared to the same period of the previous year (-43%).
Personnel costs, amounting to €215 million, increased by approximately €17 million (+9%), The change is approximately 40% linked to the higher number of FTEs (Full-Time Equivalents) in the first quarter of 2024 compared to the previous year (+436 FTEs, +3.2%) as a result of hires made during 2023 and the first three months of 2024, the start-up and upgrading of plants and structures in line with the Group's development objectives, as well as the awarding of tenders in the waste collection sector and the acquisition of a new company (Agesp Energia of the Acinque group). The remainder of the increase is attributable to the effects of salary increases for contract renewals (CCNL Urban Hygiene, Electricity, Gas and Water), merit increases and other indirect personnel costs (mainly welfare projects).

EBITDA amounted to €703 million, up 40%, +202 million compared to the first three months of 2023 (501 million euros).
Net of non-recurring items (+€4 million in 2024, +€8 million in 2023), Ebitda before extraordinary operations amounted to €699 million, up 42%, +€206 million, compared to the first quarter of the previous year (€493 million) thanks to the contribution of the Generation & Trading Business Unit and the Market Business Unit, which achieved excellent results by seizing the opportunities offered by a more stable environment. compared to that of the first months of 2023.

Net Operating Profit stood at €465 million, up 61%, +€176 million compared to 2023 (€289 million ). This positive change is attributable to the increase in EBITDA, partly offset by the increase in depreciation and amortisation of €26 million, mainly relating to the investments made by the Group in the period April 2023-March 2024.

Net Financial Expense amounted to €32 million, down from €36 million in the first quarter of 2023 thanks to higher financial income in the first three months of 2024.
Taxes amounted to €127 million, with a tax rate of 29% (30% in the same period of the previous year), up €51 million compared to the first three months of 2023 due to the increase in the tax base.

For the above dynamics, Net Profit attributable to the Group amounted to €294 million, up 70% compared to the first quarter of 2024 (€173 million at 31 March 2023).

Capex made in the first three months of 2024 amounted to €220 million (€219 million in the first quarter of 2023) and almost 60% of them concerned development interventions mainly aimed at modernising the electricity distribution networks necessary to support the progressive electrification of consumption and the growth of renewable sources, and the development of photovoltaic systems.

M&A transactions amounted to €18 million, related to the acquisition of Agesp Energia, a company that sells electricity, gas and heat operating in the Busto Arsizio area (Varese), by the Acinque group.

The Net Financial Position at 31 March 2024 amounted to €4,755 million (€4,683 million at 31 December 2023). Excluding the changes in the scope of consolidation that occurred during the period under review, amounting to -€18 million, the NFP amounted to €4,737 million , after investments of 220 million euros, recording a net cash absorption of 54 million euros.

 

Contacts:
Giuseppe Mariano
Media Relations, Social Networking and Web Responsabile

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

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

 

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