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Italgas (Baa2/NR/BBB+): 1Q24 Results

UTILITIES

While results are fine, credit driver will be the potential 2i Rete Gas acquisition and eventual funding mix. See https://marketnews.com/italgas-baa2-looking-at-2i-...


• Revenue down 10% YoY missed consensus by 11% (2 estimates). Normalisation of the “Super Bonus” was the driver.

• Adj. EBIT and EBITDA were in line with thin estimates, 10 and 12% higher YoY due to regulated gas distribution WACC changes.

• FCF was healthy at €141mn after a weak comp in 2023. Net debt is a touch lower, leaving gearing slightly better on an expanded asset base.

• Italgas has also announced an exclusivity period for 2i Rete Gas.

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