A2A, results at june 30, 2023

28 July 2023 - 12:40

SIGNIFICANT IMPROVEMENT IN ECONOMIC AND FINANCIAL INDICATORS UPWARD REVISION TO 2023 GUIDANCE FOR EBITDA AND ORDINARY NET PROFIT CONFIRMATION OF COMMITMENT TO THE REALIZATION OF STRATEGIC INFRASTRUCTURE FOR THE ENERGY TRANSITION INCREASE IN SOLAR AND WIND ENERGY PRODUCTION

Capex of 494 million euro: +7% compared to the same period last year, for the development of green energy production plants, and for the upgrading and streamlining of networks.
Revenues at 7,989 million euro: -18% compared to the same period of 2022 mainly following the contraction in electricity and gas prices on the markets.
EBITDA totals 880 million euro: +26% compared to H1 2022 (699 million euro).
Ordinary net profit at 257 million euro: +32% compared to H1 2022 (195 million euro).
Net Financial Position at 4,372 million euro (4,258 million euro as at December 31, 2022). Net of changes in the scope of consolidation of the period of -21 million euro, the NFP increased by 135 million euro, after capex for 494 million euro and dividends for 283 million euro. The rolling NFP/EBITDA ratio is 2.6x, down from December 31, 2022 (2.8x).
Upward revision to guidance: The Group will target an EBITDA of between 1.74 and 1.78 billion euro and a Group Net Ordinary Profit of between 450 and 470 million euro in 2023 on the basis of the good H1 results.

Energy Transition

Entry into the capital of VGE 05, a company that will develop a 59MW solar plant in Friuli Venezia Giulia.
Inauguration of the first series of City Plug columns, boosting the development of private electric mobility in urban contexts with an increasingly capillary and innovative recharging network, accessible also to electric cars with small batteries and plug-in hybrids.

Sustainability

+63% of green energy, produced by solar and wind sources in H1 2023 (389 GWh in June 2023; 238 GWh in H1 2022).

The Group's commitment to sustainable finance continues: in 2023, A2A successfully placed a new 500 million euro Green Bond with an 11-year term, receiving orders for approximately 2.2 billion euro (around four times the amount offered) to strengthen the Group's liquidity position and support its investment plan.
Following this transaction, the portion of sustainable debt to the Group's total gross debt as at June 30, 2023 reached 66% (55% as at June 30, 2022).

The Board of Directors of A2A S.p.A. has examined and approved the Half Year Financial Report at June 30, 2023

***

Milan, July 28, 2023 – At today’s meeting of the Board of Directors of A2A S.p.A., chaired by Marco Patuano, the Board examined and approved the Half-Year Financial Report at June 30, 2023.

"A2A is growing again, consolidating its role as a leading player in the country's energy transition" - comments Renato Mazzoncini, CEO of A2A - "The results achieved in H1 2023 confirm extremely positive Group performance. This growth was made possible, in particular, by the diversification of businesses, the strict financial discipline adopted, and the acceleration of investments and M&A transactions carried out in recent years in renewables. The 30 MW Matarocco wind farm in Sicily was also completed during the H1. These important targets achieved allowed us to revise our 2023 forecasts upwards, with an expected EBITDA of between 1.74 billion and 1.78 billion euro".

In H1 2023, A2A achieved excellent economic-financial results, thanks to the excellent performance of the Generation & Trading and Market Business Units.
The first six months of 2023 saw an easing of the strong tensions in the energy markets that had characterised 2022, with wholesale electricity and gas prices falling significantly: the PUN (National Single Price) decreased by 45% (from 248.6 euro/MWh in the first half of 2022 to 136.6 euro/MWh in the corresponding period of 2023) and the average cost of gas at the PSV by 51.5% (from 97.8 euro/MWh to 47.4 euro/MWh). Against a backdrop of falling energy prices, the A2A Group adopted effective hedging strategies, diversified its production sources and consolidated and expanded its customer base, achieving significant increases in operating margins.