Performance of the equity markets and the Acea stock

2023 was a year that above all saw a significant reduction in energy commodity prices with respect to the figures seen in 2022, above all gas and coal. This decrease was influenced by the drop in energy consumption and the gradual moderation of fears about energy supplies, also due to new systems for importing LNG coming online which counteracted the impact of the reduction in supplies from Russia.

The drop in commodities prices also contributed to the attenuation of inflation, which at the end of 2023 fell to 2.7% in the Eurozone (vs. 3.4% in the US), compared to the peak of 8% seen in the first quarter of the year. This trend supported expectations of a coming inversion of restrictive monetary policies.

The resilience of the economy (expected 2023 GDP growth of 0.5% in the Eurozone and 2.4% in the US) and expectations of a coming mitigation of restrictive monetary policies also led to a 46 bps decrease in the BTP-Bund spread which at the end of the year was 168 bps.

In this context, Euro Stoxx rose by 19.5% in 2023 (in terms adjusted for dividends - Total Shareholder Return), while the FTSE MIB, in part supported by the decrease in the BTP-Bund spread, appreciated by 34.4%, the best performance of the major stock indexes in the Eurozone. The German DAX and French CAC 40 ended the year overall in line with the Eurozone benchmark.

In 2023, the Eurozone utilities sector saw an average increase of 17.7%, above all thanks to the performance of integrated operators which benefited from the recovery in commercial margins caused by the decline in energy procurement costs and higher hydroelectric availability.

Acea recorded an increase of 14.1% (in terms adjusted for dividends - Total Shareholder Return), substantially in line with the Eurozone index for the sector. The closing price at 29 December 2023 (final trading day of the year) was € 13.83, corresponding to a market capitalisation of € 2,945 million. The maximum value of € 14.42 was reached on 7 February, while the minimum value of € 10.09 was reached on 28 September.

During 2023, the daily average volumes traded were around 171,000 shares (compared to 130,000 in 2022).