IN A COMPLEX SCENARIO, CAPEX CONTINUE IN THE ECOLOGICAL TRANSITION ECONOMIC-FINANCIAL INDICATORS STABLE
Energy Transition
Sustainability
Group's commitment to sustainable finance continues: in March, A2A successfully placed its second Sustainability-Linked Bond for 500 million euro, linked to the achievement of a 2024 sustainability target for installed capacity from renewable sources. Following this transaction, the portion of sustainable debt to the Group's total gross debt as at March 31, 2022 reached 49% (vs. 30% as at March 31, 2021). 2 A2A S.p.A. Board of Directors has examined and approved the quarterly Financial Information as at 31 March 2022
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Milan, May 12, 2022 – At today’s meeting of the Board of Directors of A2A S.p.A., chaired by Marco Patuano, the Board examined and approved the quarterly financial information as at March 31, 2022.
In the first months of 2022, the phase of uncertainty deriving from increases in the price of energy, raw materials and the availability of goods - with consequent inflationary pressures - was further exacerbated by the conflict in Ukraine which, in addition to the humanitarian drama, has caused significant effects on the economy" - comments Chief Executive Officer Renato Mazzoncini - In this scenario, A2A has confirmed its solidity and has been able to carry out its activities in a responsible manner, marking a 20% capex growth compared to the first quarter of 2021 in key sectors, indispensable for achieving the country's energy autonomy, which the war has made no longer postponable, favouring the ecological transition".
During the period in question, A2A Group ensured the stability of its economic and financial results, despite operating in a complex context characterized by volatility of energy commodities price - already at record levels before the war outbreak - while exceptionally low hydraulicity led to low levels of hydroelectric production.
The inevitable economic and financial effects were appropriately managed by the Group by monitoring commodity risks and financial and credit exposure, thereby mitigating those impacts that energy markets turbulence could have had.
The activities diversification in which the Group operates made it possible to mitigate the negative impacts recorded by the Market Business Unit relating to energy price dynamics also in the first quarter of 2022.
In the first quarter of 2022, the average value of PUN (Single National Price) Base Load more than quadrupled (+318.9%) compared to the same period of 2021, standing at 248.1 euro/MWh, driven by gas prices at historic highs and CO2. In fact, the average cost of gas at the PSV (Virtual Trading Point) in the period under review was 98 euro/MWh, up 423.6% compared to the same period of the previous year, while CO2 quotations stood at an average price of 83.6 euro/ton (37.5 euro/ton in the same period of 2021, +123%).
This strongly upward price trend resulted in turnover for the period more than doubling compared with the first quarter of the previous year.
The A2A Group has adopted a prudent strategy of stabilizing margins and containing the connected to price volatility, with hedges of around 90% for fixed-price electricity production and general recourse to advance contracting for both procurement and supplies to wholesale operators and end customers, while at the same time seizing the opportunities present in the ancillary services market. The Group thus ensured - albeit with different contributions in terms of sign and entity by the various Business Units - an operating margin substantially in line with the previous year.
In Q1 2022, A2A also continued its industrial growth, in line with the company's strategy based on energy transition and circular economy thanks to:
Capex for 186 million euro, up 20% compared to the first quarter of the previous year. In particular, development investments were made for 114 million euro (+34% compared to the same period of 2021) aimed at energy and materials recovery, the strengthening of distribution networks, water and sewage networks, purification plants, interventions aimed at contributing to the adequacy and safety of the national electricity grid and to the digitalization of the Group.
M&A transactions for 22 million euro: acquisition by A2A Rinnovabili S.p.A. of 100% of Volta Green Energy, a platform dedicated to the construction, development and management of renewable source plants. With this transaction A2A has acquired a pipeline of wind and photovoltaic projects with an expected installed capacity of around 800 MW.
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