Italgas expects double-digit growth in income by 2030 and increases minimum dividend
Italgas, Italy's largest gas distributor, expects double-digit increases in its net income and core profits under a new strategy to 2030. This comes after the signing of a 5.3 billion euros deal on Saturday to buy smaller rival 2iReteGas.
The group announced on Monday that it will ensure that its dividends grow 5% per year until 2026. This is compared to the previous minimum of only 4%. It also confirmed it will pay out 65% adjusted net income for each share.
It committed to investing 15.6 billion euro ($17.11 billion), over the next seven-year period, to complete the purchase of 2i Rete gas, develop gas distribution throughout Italy and Greece, and to strengthen its presence in water.
The acquisition of 2i Rete Gas will not only consolidate the gas distribution industry in Italy, but also create a major player in Europe.
The group announced that it would issue 1 billion euros in rights to finance the deal. This will require antitrust remedies.
Italgas anticipates saving 200 million euros through cost-efficiency after the transaction. It also expects to see an increase in revenues due to the investment made for the digital upgrade of the 2i Rete Gas Network.
By 2030, the core earnings are expected to be 2.8 billion euro.
Earnings per share grew by about 10%. This is a growth rate of approximately 13% in earnings before taxes, depreciation, and amortization (EBITDA). $1 = 0.9115 euro (Reporting and editing by Giulia Segrit, Kirsten Doovan).
(source: Reuters)
