Italgas posts third-quarter core profit up 10.9% ahead of 2i Rete Gas acquisition
Adds CEO comment, background on 2i Rete Gas deal, EMTN Programme renewal
Oct 24 (Reuters) -Europe's biggest gas distributor Italgas IG.MI on Thursday reported 10.9% growth in third-quarter adjusted core earnings, citing higher gas distribution turnover and cost cuts, as it prepares to reap the benefits from its consolidation efforts.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were 1.01 billion euros ($1.09 billion), with gas distribution revenue up 11.5% at 1.21 billion euros.
The group, which has agreed this month to buy smaller rival 2i Rete Gas in a 5.3 billion euro deal, aims to launch a rights issue of 1 billion euros to finance the acquisition.
"The Strategic Plan 2024-2030, which includes the integration of 2i Rete Gas ... sets further and more ambitious goals in terms of investments, achievement of green transition targets, and value creation for all our stakeholders," CEO Paolo Gallo said in a statement.
Under its latest business plan published after striking the deal, Italgas expects its turnover to reach 3.6 billion euros and its core earnings to be 2.8 billion euros by 2030.
The board of directors also approved the renewal of the Euro Medium Term Notes (EMTN) Programme for a nominal amount of up to 10 billion euros, it said in a separate statement on Thursday, aiming to issue one or more bonds intended for institutional investors within one year from now.
($1 = 0.9264 euros)
Reporting by Enrico Sciacovelli and Michela Stasio
Editing by David Goodman and David Evans
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