THE BOARD OF DIRECTORS OF 2i RETE GAS APPROVES THE RESULTS AT JUNE 30th 2022
The Board of Directors of 2i Rete Gas S.p.A. (“2iRG”) approved the Consolidated Interim Financial Report at June 30th 2022.
Financial highlights
- Revenues: 358.0 million euro (-1.8%)
- Adjusted EBITDA: 237.9 million euro (-2.6%)
- Adjusted EBIT: 133.6 million euro (-7.5%)
- Net profit: 77.2 million euro (-20.0%)
- Adjusted net profit: 76.1 million euro (-8.1%)
- Investments: 172.0 million euro (-3.3%)
- Net fixed assets: 4,061.0 million euro (+ 5.2% compared to June 30th 2021)
- Adjusted net financial position: 2,878.7 million euro (+2.1% compared to June 30th 2021)
Operational highlights
- Active concessions: 2,193
- Active redelivery points: 4,448,143 (-0.5% compared to June 30th 2021)
- Distributed (Natural and LPG) gas in millions of m3: 3,558 (-5.8%)
- Km of pipelines operated: 69,871 (+0.4% compared to June 30th 2021)
In the first half of the current year, 2iRG reported 358.0 million euro of Revenues, net of line items offset with costs. This amount included 1.5 million euro in non-recurring items, related to the capital gain generated by the disposal of the assets of Cinisello Balsamo.
Adjusted revenues item is therefore 356.5 million euro (364.7 million euro as of June 2021). The decrease is mainly a consequence of lower revenues from gas distribution due to lower Weighted Average Cost of Capital (WACC) and lower recognised operating costs (about -15 million euro), offset by the increase of the Regulatory Asset Base (RAB) value thanks to the investments campaign and the full impact of the acquired assets of Infrastrutture Distribuzione Gas.
Adjusted operating costs in the first half of 2022 totalled 118.6 million euro, with a decrease of about 1.9 million euro compared to the previous period (-1.6%) and did not include special items. The costs decrease recorded is mainly due to lower losses from disposals despite the change in the scope of consolidation.
Adjusted EBITDA amounted to 237.9 million euro, 6.3 million euro (-2.6%) lower compared to the previous period.
Adjusted EBIT amounted to 133.6 million euro, 10.8 million euro lower than in June 2021 (-7.5%) also due to the increase of depreciation and amortisation.
The Adjusted net profit for the period is equal to 76.1 million euro, 6.7 million euro lower (-8.1%) than in June 2021.
In the first half of 2022, 2iRG put in place gross investments of 172.0 million euro (177.9 million euro as of June 2021). The reduction was largely attributable to the lower smart meters installed.
Net fixed assets in June 2022, mainly represented by intangible assets related to gas distribution concessions, are equal to 4,061.0 million euro, 199.3 million euro higher compared to June 2021 (+5.2%). The increase is mainly driven by the normal trend of company’s investments.
The adjusted net financial position rose from 2,820.7 million euro in the first half of 2021 to 2,878.7 million euro as of 30 June 2022 (+2.1%). The slight worsening (+58.0 million euro), despite the positive operating performance, is mainly due to the increase in net fixed assets.
The following table illustrates the main financial figures of the consolidated financial statements.
(*) Exclusively for the purposes of the reclassified income statement, revenues from construction of the network distribution ex IFRIC 12 “Service Concession Arrangement”, which are measured to the extent of the relevant costs incurred (162.5 and 164.5 million euro in the first half of 2022 and 2021, respectively), are accounted for as a deduction of the relevant costs.
(**) Including the debt registered following the application of the IFRS16 principles (equal to 26.0 and 21.4 million euro in the first half of 2022 and 2021, respectively).
(***) Excluding the non-current financial assets for the costs on loan and the adjustment to the payables for transaction costs associated with loans pursuant to IAS 39 (9.2 and 11.4 million euro in the first half of 2022 and 2021, respectively).