INTERIM REPORT ON OPERATIONS AS AT 30 SEPTEMBER
2024
A s c o p i a v e G r o u p
Index | |
GENERAL INFORMATION | 5 |
Corporate bodies and information | 5 |
MANAGEMENT REPORT | 8 |
Foreword | 8 |
The structure of the Ascopiave Group | 10 |
Ascopiave S.p.A. share price performance on the Stock Market | 11 |
Control of the company | 12 |
Corporate Governance and Code of Ethics | 13 |
Transactions with related and associated companies | 14 |
Significant events during the first nine months of the financial year 2024 | 15 |
Other significant facts | 17 |
Energy efficiency and Savings | 17 |
Stipulation of a proposed convention with the municipalities for the adoption of a shared | |
procedure aimed at the agreed quantification of the "Industrial Residual Value" of | |
networks | 17 |
Litigation | 19 |
Relations with the Revenue Agency | 25 |
Territorial areas | 26 |
Significant events after the end of the first nine months of the financial year 2024 | |
........................................................................................................ | 28 |
Distribution dividends | 29 |
Treasury shares | 29 |
Foreseeable development of operations | 29 |
Inflationary trends and interest rates | 30 |
Group objectives, policies and description of risks | 31 |
Additional information | 37 |
Seasonality of operations | 37 |
Comments on the economic and financial results for the first nine months of | |
the financial year 2024 | 38 |
Performance Indicators | 38 |
Operating Performance - Main operating indicators | 39 |
Operating Performance - The Economic Results of the Group | 40 |
Operating performance - Financial Situation | 42 |
Operating Performance - Investments | 44 |
Financial Statements of the Interim Report | 45 |
Consolidated Statement of Financial Position | 46 |
Consolidated Statement of Comprehensive Income | 47 |
Consolidated Statements of Changes in Equity | 48 |
Consolidated Cash Flow Statement | 49 |
EXPLANATORY NOTES | 50 |
Corporate information | 50 |
General preparatory benchmarks and expression of conformity with IFRS | 50 |
Schedules of Financial Statements | 50 |
Evaluation Benchmarks | 51 |
Consolidation Area and Criteria | 51 |
Summary data of fully consolidated companies | 53 |
NOTES TO THE ITEMS IN THE CONSOLIDATED BALANCE SHEET | 54 |
Non-current Assets | 54 |
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Current Assets | 60 |
Consolidated net equity | 66 |
Non-current liabilities | 67 |
Current liabilities | 71 |
NOTES TO THE MAIN ITEMS OF THE CONSOLIDATED INCOME STATEMENT | 75 |
Revenues | 75 |
Financial income and expenses | 79 |
Taxes | 80 |
Net result from transfer/disposal of assets | 80 |
Non-recurring components | 81 |
Transactions resulting from atypical and/or unusual operations | 81 |
Commitments and risks | 81 |
Risk factors and uncertainty | 81 |
Capital Management | 84 |
Representation of financial assets and liabilities by category | 85 |
Sector information | 86 |
Transactions with related parties | 87 |
Financial statements presented in accordance with Consob Resolution 15519/2006 | |
...................................................................................................... | 89 |
Consolidated Statement of Financial Position | 89 |
Consolidated Statement of Comprehensive Income | 90 |
Consolidated Cash Flow Statement | 91 |
Consolidated net financial debt | 92 |
Significant events after the end of the first nine months of the financial year 2024 | |
... ..................................................................................................... | 93 |
Group Objectives and Policies | 93 |
Attachments:
- Declaration of the Manager in Charge - Attestation to the Consolidated Financial Statements pursuant to Article 81-ter, Consob Regulation No. 11971
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GENERAL INFORMATION
Corporate bodies and information
Board of Directors and Board of Auditors
Name | Office | Duration of office | From | To |
Cecconato Nicola* | Chairman of the Board of Directiors and CEO | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Pietrobon Greta | Directors | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Quarello Enrico | Directors | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Novello Cristian | Indipendet Director | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Monti Federica | Indipendet Director | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Vecchiato Luisa | Indipendet Director | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Zoppas Giovanni** | Indipendet Director | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
- Cecconato Nicola was appointed Chief Executive Officer by the Board of Directors on 11 May 2023; (**) Zoppas Giovanni was appointed Lead Independent Director by the Board of Directors on 11 May 2023.
Name | Office | Duration of office | From | To |
Salvaggio Giovanni | President of the Board of Auditors | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Moro Barbara | Statutory Auditor | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
Biancolin Luca | Statutory Auditor | 2023-2025 | 18.04.2023 | Approval of budget 2025 |
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Governance Committees
Audit and Risk Committee
Name | Office | From | To |
Novello Cristian | Independent director - President | 11.05.2023 | Approval of budget 2025 |
Monti Federica | Independent director | 11.05.2023 | Approval of budget 2025 |
Vecchiato Luisa | Independent director | 11.05.2023 | Approval of budget 2025 |
Remuneration Committee
Name | Office | From | To |
Vecchiato Luisa | Independent director - President | 11.05.2023 | Approval of budget 2025 |
Novello Cristian | Independent director | 11.05.2023 | Approval of budget 2025 |
Pietrobon Greta | Non-executive director | 11.05.2023 | Approval of budget 2025 |
Sustainability Committee
Name | Office | From | To |
Pietrobon Greta | Non-executive director - President | 11.05.2023 | Approval of budget 2025 |
Monti Federica | Independent director | 11.05.2023 | Approval of budget 2025 |
Quarello Enrico | Non-executive director | 11.05.2023 | Approval of budget 2025 |
Auditing Company | Investor relations |
KPMG S.p.A. | Tel. +39 0438 980098 |
Fax +39 0438 964778 | |
e-mail: investor.relations@ascopiave.it | |
Registered office and corporate | |
information | |
Ascopiave S.p.A. | |
Via Verizzo, 1030 | |
I-31053 Pieve di Soligo - TV Italy | |
Tel: +39 0438 980098 | |
Fax: +39 0438 964778 | |
Share Capital: Euro 234,411,575 fully paid-in. | |
VAT NO. 03916270261 |
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Ascopiave Group Key Economic and Financial Data
Economic Data | ||||
Nine month | ||||
(Thousands of Euro) | 2024 | % of revenues | 2023 | % of revenues |
Revenues | 146,292 | 100.0% | 125,153 | 100.0% |
Gross operative margin | 71,895 | 49.1% | 55,569 | 44.4% |
Operating result | 34,181 | 23.4% | 19,838 | 15.9% |
Result for the period | 26,611 | 18.2% | 14,378 | 11.5% |
Net result for the period | 26,611 | 18.2% | 14,435 | 11.5% |
EBITDA is short for earnings before depreciation, amortisation, bad debts, financial management and taxes.
Balance Sheet Data
(Thousands of Euro) | 30.09.2024 | 31.12.2023 |
Net working capital | 32,159 | 33,702 |
Fixed assets and other non current assets (Non-financial) | 1,285,337 | 1,273,692 |
Non-current liabilities (excluding loans) | (63,896) | (63,749) |
Net invested capital | 1,253,600 | 1,243,645 |
Net financial position | (404,782) | (389,363) |
Total Net equity | (848,817) | (854,282) |
Total financing sources | (1,253,600) | (1,243,645) |
Please note that the "Net working capital" is the sum of inventories, trade receivables, tax receivables, other current assets, trade payables, tax payables (within 12 months) and other current liabilities.
Monetary flow data
Nine month
(Thousands of Euro) | 2024 | 2023 |
Total comprehensive income | 25,704 | 45 |
Cash flows generated (used) by operating activities | 54,574 | (48,420) |
Cash flows generated/(used) by investments | (38,112) | (36,465) |
Cash flows generated (used) by financial activities | (51,673) | 27,316 |
Variations in cash | (35,212) | (57,568) |
Cash and cash equivalents at the beginning of the period | 52,083 | 76,917 |
Cash and cash equivalents at the end of the period | 16,871 | 19,349 |
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MANAGEMENT REPORT
Foreword
The Ascopiave Group closed the first nine months of the 2024 financial year with a consolidated net profit of Euro
26.6 million (Euro 14.4 million as at 30 September 2023), an increase of Euro 12.2 million compared to the same period of the previous year.
Consolidated shareholders' equity as of 30 September 2024 amounted to Euro 848.8 million (Euro 854.3 million as of 31 December 2023), and net invested capital to Euro 1,253.6 million (Euro 1,243.6 million as of 31 December 2023). During the first nine months of the year, the Group made investments of Euro 51.6 million (Euro 55.3 million in the first nine months of 2023), mainly in the development, maintenance and modernisation of gas distribution networks and plants, as well as in the installation of electronic meters, for Euro 40.5 million (Euro 39.8 million in the first nine months of 2023). At the end of the reporting period, investments were made in plants for the production of energy from renewable sources for Euro 9.2 million (Euro 14.4 million in the first nine months of 2023).
It should be noted that the Estenergy Group's and Cogeide S.p.A.'s share of the Group's economic results is recognised in the item "Net result of companies consolidated using the equity method".
Activities
The Ascopiave Group operates mainly in the natural gas distribution sector. It currently holds concessions and direct assignments for the management of gas distribution in 301 municipalities, operating a distribution network that extends over 14,714 kilometres and providing the service to approximately 870,800 users.
The Group is also present in the renewable energy sector, owning 29 hydroelectric and wind power plants.
The Group also operates in the field of cogeneration and heat management, as well as in the water sector, being a shareholder and technological partner of the company Cogeide, which manages the integrated water service in 15 municipalities, serving a basin of more than 100,000 inhabitants through a network of about 930 km.
Strategic Objectives
The Ascopiave Group intends to pursue a corporate strategy focused on creating value for its stakeholders, maintaining levels of excellence in the quality of services offered, respecting the environment and enhancing the social instances that characterise the context in which it operates.
To this end, it intends to consolidate its leadership position in the gas sector at a regional level and aims to achieve significant positions also at a national level, taking advantage of the liberalisation process currently underway. The main lines of its development strategy are dimensional growth, diversification into other sectors of the energy sector synergic with the core business, and the improvement of operational processes.
Operating performance
The volume of gas distributed through the networks managed by the Group amounted to 968.9 million cubic metres, an increase of 0.2% compared to the same period of the previous year.
As of 30 September 2024, the distribution network had a length of 14,714 kilometres, a decrease of 16 kilometres compared to 31 December 2023. This change is mainly related to the transfer, effective 1 January 2024, of certain concessions in the ownership of Romeo Gas.
The 29 plants producing electricity from renewable sources, with a total installed capacity of 84.1 MW, produced
170.0 GWh during the first nine months of the year, showing an increase of 66.2% over the same period of the previous year. The improvement compared to the comparable figure is due to both the commissioning of a new wind farm of the subsidiary Salinella Eolico S.r.l., which took place at the beginning of 2024, and the improvement in operating conditions compared to the first nine months of 2023, characterised by a significant drought.
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Economic results and financial overview
Consolidated revenue for the first nine months of the financial year 2024 amounted to EUR 146.3 million, compared to EUR 125.2 million in the same period last year.
The Group's operating profit amounted to EUR 34.2 million, an increase of EUR 14.3 million compared to the same period last year.
At EUR 26.6 million, the consolidated net profit increased by EUR 12.2 million compared to the first nine months of the previous year.
The Group's Net Financial Position as of 30 September 2024 was EUR 404.8 million, up EUR 15.4 million from EUR 389.4 million as of 31 December 2023.
The increase in financial debt is determined by the cash flow for the year (given by the sum of the net result, income from equity investments, the result of companies consolidated using the equity method and depreciation and amortisation), which generated resources of Euro 52.0 million, by the management of net working capital, which generated financial resources of Euro 1.9 million, by investment activities, which absorbed resources of Euro 51.6 million, and by asset management (mainly dividends), which absorbed resources of Euro 17.7 million.
The ratio of Net Financial Position to Shareholders' Equity as at 30 September 2024 was 0.48 (0.62 as at 30 September 2023).
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The structure of the Ascopiave Group
The table below shows the corporate structure of the Ascopiave Group as at 30 September 2024.
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