GAS PLUS S.P.A. Gas Plus Group
Analyst Presentation
FY 2023 Financial Results
April 12th, 2024*
* This document is updated on 6 months basis, occurring after 31 December and 30 June closing
Agenda
▪1 | MARKET SCENARIO |
▪2 HIGHLIGHTS
▪3 FINANCIAL RESULTS
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Market Scenario
TTF Gas Price - Day Ahead
Brent Price - Month | €/$ Exchange Rate - Spot |
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Agenda
▪1 | MARKET SCENARIO |
▪2 HIGHLIGHTS
▪3 FINANCIAL RESULTS
3
Highlights
FY 23 results well within guidance previously communicated:
- EBITDA 70.5 M€ close to 2022 levels 76.1 M€ (-7.4%)
- Same trend for EBIT and Net Result adjusted
- Higher E&P EBITDA decrease (-27.5%) but lower than gas price drop thanks to full year Romanian production
- EBITDA progress for downstream BUs (Network +17.1% and Retail back to a positive EBITDA margin)
- Progression of Longanesi work programme - all subsurface activities completed
- Dividend increase up to 15 €/cent per share from previous 5 €/cent taking into account financial needs linked to further investments
Outlook 2024
2024 results are expected substantially lower - being the E&P production mix focussed on gas (90.4%) - assuming present lower gas price scenario
Longanesi's gas in - main driver for boosting growth, also in challenging gas price scenarios - expected for Q1 26 (or for Q1 25 in the hypothesis of Long Production Test)
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Agenda
▪1 | MARKET SCENARIO |
▪2 HIGHLIGHTS
▪3 FINANCIAL RESULTS
E&P
RETAIL
NETWORK
GROUP FINANCIAL RESULTS COMPANY PROFILE
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Financial Results: E&P
FY 2023 P&L - E&P contribution | ||||||||
E&P (MScme) | FY23 | FY22 | ∆ (%) | |||||
Hydrocarbon Production | 229.2 | 181.6 | 26.2% | |||||
of which natural gas | 207.3 | 155.2 | 33.6% | |||||
of which oil and condensate | 21.9 | 26.4 | (17.0%) | |||||
EBITDA (M€) | 60.5 | 83.5 | (27.5%) | |||||
Exploration Capex | 1.5 | 0.2 | 650% | |||||
Development Capex | 18.8 | 24.3 | (22.6%) | |||||
E&P Reserves | ||||||||
E&P (MScme) | Dec 31, 2023 | Dec 31, 2022 | ∆ (%) | |||||
Hydrocarbon Reserves | 3,938.6 | 4,096.8 | (3.9%) | |||||
of which domestic | 3,250.6 | 3,394.3 | (4.2%) | |||||
of which international | 688.0 | 702.5 | (2.1%) |
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- EBITDAkey factors:
- Decreasing gas prices (-66%)
- Production (+26.2%):
- Domestic: gas production confirmed year-to-date increase (+1.4 MSmc) despite extraordinary maintenance in IIH 2023; on the only oil field (Cavone) reduction due to natural depletion (-4.6 MSmce)
- International : Romanian full year gas production in 2023 compared to approximately half year of 2022 (+50.7 MSmc)
- Positive effects of hedging policy
- Domestic activities - Longanesi project
- Drilling and completion activities of the 3 existing wells completed and workover of one of the existing wells finalized
- Laying of flowlines from wells to treatment plant ongoing
- Underway the procedures for the award of the contracts for the treatment plant and associated works
- Domestic activities - Development Capex
- Increase confirmed year-to-date (17.5 M€ vs 13.6 M€)
- International activities
- Romania
- Stable daily basis production
- Permitting is underway for a power corridor in the Romanian Black Sea, along the existing MGD Project infrastructure, connecting future offshore wind parks to the national grid (SEN)
- Netherlands
- Negative result of the exploration well E-15-1 in the Dutch North Sea
Financial Results: Retail
TTF GasP&Lrice --RetailQuarter Ahead
FY 2023 | FY 2022 | |
11% | 12% | |
12% | Residential | 11% |
Sales: | Small Business | Sales: |
49.8 MScm | 61.8 MScm | |
Industrial | ||
77% | 77% |
Retail | FY23 | FY22 | ∆ (%) |
Sales (MScm) | 49.8 | 61.8 | (19.4%) |
Residential | 38.5 | 47.5 | (18.9%) |
Small Business/Multipod | 5.8 | 6.8 | (14.7%) |
Industrial | 5.5 | 7.6 | (27.6%) |
EBITDA (M€) | 4.2 | (11.8) | n.a. |
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-
EBITDA: significant margin recovery
(+16.0 M€) confirmed year-to-date, as outcome of the supply and sales strategy implemented after overcoming the turbulent energy market conditions of 2022 - Decrease of sold volumes (-19.4%) due to:
- Warmer temperatures (-13.0%)
- Reduction of number of the customers (-6.4%) centred in IIH23 ensued by the end of the gas protection market (regime di tutela)
- Recovery of marginality in all customer's segments
Financial Results: Network
TTF Gas Price - Quarter Ahead
FY 2023 P&L - Network Contribution
FY23 | FY22 | ∆ (%) | |||
Distributed Volumes (MScm) | 182.7 | 200.9 | (9.1%) | ||
Direct end users (#K) | 108.9 | 109.0 | (0.1%) | ||
Pipeline (Km) | 1,830.0 | 1,827.0 | 0.2% | ||
EBITDA (M€) | 8.2 | 7.0 | 17.1% | ||
Capex (M€) | 3.9 | 2.7 | 44.4% |
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- The warmer temperatures registered during 2023 led to a decrease in the distributed volumes of gas (-9.1%)
- EBITDA results higher (+17.1%). The key factors are:
- Slight improvement in revenues cap from gas distribution, due to RAB's increase as a result of higher investments
- Optimization of Opex
- The growth of Capex, with an increase of capitalized costs
- The installation of the new G4-G6 smart meters has been completed: 85% of the total was installed as of December 31st 2023, in line with the deadline set by the Authority (85% by 31/12/2023)
- No ATEM tenders involving Group concession have been launched to date. The Group intends to evaluate the new ATEM tenders in order to maintain the same perimeter of activities as a minimum target
Financial Results
FY 2023 - Group P&L
TTF Gas Price - Quarter Ahead
235.4
160.8
70.5 | 76.1 | |||||
FY 2023 | FY 2022 | |||||
Revenues | EBITDA | |||||
Group (M€) | FY 23 | FY 22 | ∆ (%) |
Revenues | 160.8 | 235.4 | (31.7%) |
Operating Costs | 90.3 | 159.2 | (43.3%) |
EBITDA | 70.5 | 76.1 | (7.4%) |
EBIT | 44.5 | 61.4 | (27.5%) |
EBT | 36.7 | 55.8 | (34.2%) |
Net Result | 49.2 | 3.4 | n.a. |
EPS (€) | 1.13 | 0.08 | n.a. |
- Decrease in Revenues (-31.7%) as effect of lower gas prices. Decrease in Operating costs due to the lower gas purchase costs and lower taxes (royalty and windfall tax) on gas production
- Decline in EBITDA (-7.4%) compared to a drop in gas prices of 66%: positive economic performance of all Group activities
- Amortization and depreciation in line with 2022 values
- Following impairment tests, devaluations (6.6 M€) and revaluations of some previously devalued assets (4.0 M€)
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Strong growth in net profit also thanks to the non-recurring income
(21.6 M€) following the non- payment of the extraordinary solidarity contribution in Romania
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Disclaimer
GasPlus S.p.A. published this content on 12 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 07:49:06 UTC.
