Reggio Emilia, 28 July 2022 - The Board of Directors of IREN S.p.A. today approved the consolidated financial statements as at 30 June 2022.

• Gross investments, mainly located in the reference territories and amounting to € 739 million, had a growth of 2.2 times when compared to 30 June 2021, and were allocated to the development of the 220 MW of renewable capacity installed or under construction and to the building of 3 new treatment plants (in addition to the 4 that were commissioned at the end of 2021).

• The results achieved during the first half of 2022 show an EBITDA of € 563 million supported by organic growth, particularly in the energy and waste management sectors, and confirm the resilience of the business model with respect to volatile energy and climate scenarios. Overall, the impact of government measures to lower prices represented a burden in the six-month period for approximately € 42 million.

• Confirmed also in 2022 a commercial policy, for Iren gas-energy customers with fixedprice contracts, with an average saving of 30% compared to the prices of contracts under protected market.

Principali indicatori

• Gross Operating Margin (EBITDA) in the amount of € 563 million (+9% compared to € 516 million as at 30/06/2021). The EBITDA increase of € 47 million is mainly driven by the capacity market, organic growth and investments in renewables. The overall increase was partially reduced by the impact of the drought on the energy chain. 

• Group net profit attributable to shareholders of € 133 million (-31% compared to € 193 million as at 30/06/2021). The 2022 result includes the full negative impact of the “Contributo di solidarietà” estimated at EUR 31 million for the year and compares with the 2021 result, which was positively impacted by EUR 32 million in non-recurring tax income and EUR 12 million in other contingent assets. Excluding non-recurring effects on both periods, Group net income attributable to shareholders would have stood at €164 million, therefore resulting in an increase of 7.6%.
  

• Net financial debt at € 3,398 million (+16.9% compared to € 2,906 million as at 31/12/2021). The period's investments and dividend payments contributed to the growth of net debt, which remains under control thanks to cash generation and excellent net working capital management.

• Gross investments amounting to € 739 million, up 2.2x compared to 30/06/2021, of which € 338 million in technical investments, € 279 million in financial investments and € 122 million in energy efficiency projects.

• Numerous ESG performance indicators continue to be ahead of Plan forecasts: green energy sold had doubled when compared to last year, strong increase in energy efficiency activities and service quality with a -2% drop in water withdrawal per inhabitant per day.

“In a highly complex and challenging energy scenario, characterised by an extraordinary increase in the price of raw materials that is putting citizens and businesses to the test, the Iren Group has significantly increased investments in its reference territories, combining development with a focus on energy and circular transition. - declares Luca Dal Fabbro, Chairman of Iren - In a context further aggravated by the persistent drought, Iren has also demonstrated a strong sensitivity by contributing to alleviate the difficulties of agriculture by guaranteeing a regular flow of water releases from its reservoirs. It is an unprecedented crisis, which will force us to review our consumption habits and the management of energy and water resources: as a Group we are and will be at the side of citizens and territories to promote innovative solutions that reduce consumption and waste” 

“The positive results that have just been approved confirm the Group's solid foundations and clear strategic vision capable of showing resilience in the face of a highly volatile energy scenario - states Gianni Vittorio Armani, CEO and General Manager of Iren - The doubling of investments, which amounted to € 739 million, highlights Iren's ability to respect its established targets, in particular in the circular economy with four new waste treatment plants already realised, and in renewables with 220 MW installed capacity or in construction in only six months from the approval of the Business Plan. In view of the difficult energy context and the rising cost of raw materials, Iren has guaranteed its customers with fixed-price contracts an average saving of 30% compared to the prices of contracts under protected market. In the first half of 2022, these trade policies partially calmed commodity price increases on end customers, saving each household an extra cost of approximately € 600 for energy and heating gas.”

IREN GROUP: CONSOLIDATED RESULTS AT 30 June 2022

Consolidated Revenues as at 30 June 2022 amounted to € 3,711.6 million, up +85.2% compared to € 2,003.8 million in the first half of 2021. The main factors contributing to the increase include higher energy revenues, which were influenced by the rise in commodity prices (over € 1,400 million) and the climate effect and consumption (approximately € 16 million). Energy upgrading and building renovation activities, favoured by tax breaks (façade bonus and 110% superbonus), also contributed approximately € 125 million to the change in turnover. Finally, changes in the scope of consolidation impacted revenues by € 27 million, largely due to the consolidation of Puglia Holding (now Iren Green Generation). 

Gross Operating Profit (EBITDA) amounted to € 562.7 million, a significant increase (+9.0%) compared to € 516.3 million for the first half of 2021. Contributing positively to the improvement of EBITDA is the trend in the energy scenario characterised by a sharp increase in the price of electricity and thermal energy compared to the first half of 2021. Indeed, the integrated management of the energy supply chain has enabled, in a highly volatile context, to offset the positive effects (margins on electricity and heat production up, consideration for the capacity market) and the negative effects (margins on gas and electricity sales down sharply, significant decrease of the volumes of energy produced the hydroelectric sources as a result of the drought). The organic growth related to the tariff increases of the network services linked to the investments made to improve the infrastructures, the development of the activities related to the energy requalification works and the full operation of the new biodigesters in Cairo Montenotte and Santhià also had a positive effect. About € 20 million of the increase in margin is due to the expansion of the consolidation scope primarily related to the acquisition of Puglia Holding. Overall, the increase in gross operating profit with reference to the individual business units is broken down as follows: Waste Management (+27.7%), Energy (+54.5%), Networks (+4.3%) while the Market business unit declined (-68.0%), the latter trend being related to the increase in the Energy BU in the logic of integrated management of the energy supply chain.

Operating profit (EBIT) amounted to € 282.9 million, an increase of +13.1% compared to € 250.2 million for the first half of 2021. Amortisation and depreciation for the period rose by € 23.4 million, due to the start-up of new investments and expansion of the consolidation scope, and to higher allocations to the provision for impairment of receivables and provisions for risks for € 2.0 million. There were also higher releases of provisions of € 11 million, mainly related to the settlement of disputes with suppliers. 

Group net profit attributable to shareholders amounted to € 133 million, a decrease (-31.0%) from the result recorded at 30/06/2021. The 2022 result includes the full negative impact of the “Contributo di solidarietà” estimated at EUR 31 million for the year and compares with the 2021 result, which was positively impacted by EUR 32 million in non-recurring tax income and EUR 12 million in other contingent assets. Excluding non-recurring effects on both periods, Group net income attributable to shareholders would have stood at € 164 million, therefore resulting in an increase of 7.6%.

Net financial debt stood at € 3,398 million as of 30 June 2022, an increase (+16.9%) compared to the 31 December 2021 figure. In this regard, the cash flow generated by operating activities helped mitigate the effect of disbursements made for investments and M&A transactions in the period and dividends paid out.

Gross investments made in the period amounted to € 739 million, up (+2.2x) from € 338 million in the same period of 2021, of which € 338 million in technical investments, € 279 million in financial investments (mainly related to the acquisition of the photovoltaic parks in some locations in Puglia by Puglia Holding, the acquisition of the sales company Alegas, the increase of the equity investment in the associate SEI Toscana, the acquisition of some gas distribution assets and the hydroelectric generation plants of Valle Dora Energia) and € 122 million related to energy efficiency projects.