Business outlook

In a context that remains complex, mainly due to the effects of the war in Ukraine and its effects on the economy and society, as well as the negative impacts of volatility on the energy market, 2022 results have recorded solid growth. However, net profit in 2022 was influenced by external factors, mainly taxation of excess profits and the increase in interest rates for financial management.

The Group paid greater attention to managing costs and investments. Acea established prompt revision of its procurement procedures to improve its competitive processes, allowing for a prompt reduction in costs and optimisation of investments and work orders. Additionally, lines of action were defined to contain credit risk, in part through prevention and managing the customer portfolio.

All of the actions implemented made it possible to strengthen the Group’s position as an operator with a strong industrial vocation, maintaining a solid financial structure and generating positive impacts on the Group’s economic and operating performance.

With reference to the Water segment, Acea released the doubling project for Peschiera, one of the ten works deemed of national interest. This € 1.2 billion project, of which € 700 million covered through public resources allocated in the 2023 Stability Law, will make secure the water supplies for the capital city. Additionally, the assignment of NRRP projects was unblocked for € 733 million, to implement works in the areas of Lazio, Tuscany, Campania and Umbria.

In the environmental area, in October, Acea received authorisation from the Lazio Region, initially requested on 20 August 2020, to improve the Waste to Energy Plant in San Vittore (province of Frosinone). The project is fundamental in closing the waste cycle in Lazio and will improve waste-to-energy capacity by 186,000 tons per year, with an investment of over € 230 million. On 1 March, Acea and a group of major domestic and international leaders in their respective sectors presented an indication of interest to participate in the tender for the assignment of the new Santa Palomba Waste to Energy Plant (province of Rome).

With regards to public lighting and the electricity distribution grid, Acea was able to begin significant investments, also with an eye to the upcoming Jubilee, thanks to the renewed collaboration with the Municipality of Rome. In late January an innovative metre was launched in Rome, which supports the balance between energy demand and supply.

Debt at 31 December 2022 involves a fixed rate for 84%, so as to guarantee protection from any future increases in interest rates and from financial or credit volatility, as well as to guarantee adequate coverage of the financial requirements the Group will have. In 2023 the issue of two Green Bonds was successfully completed for a total of € 700 million, at a rate of 3.875% and maturing on 24 January 2031, further strengthening Acea’s position as a sustainability leader.