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
1
Market Scenario
TTF Gas Price - Day Ahead
Brent Price - Month | €/$ Exchange Rate - Spot |
2
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)
4
Agenda
▪1 | MARKET SCENARIO |
▪2 HIGHLIGHTS
▪3 FINANCIAL RESULTS
E&P
RETAIL
NETWORK
GROUP FINANCIAL RESULTS COMPANY PROFILE
5
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%) |
6
- 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. |
7
-
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% |
8
- 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€)
-
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
9
Attachments
- Original Link
- Original Document
- Permalink
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.