A2A SpA Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : I have a few questions asked actually to ask this guidance of EUR 0.46 billion of debt very interesting. We are more or less at the same level that we are now. So second part of the year, what kind of CapEx level are you going to have? There is also a second part of the year, the factor related to taxes and then working capital, let me explain. If I understood well, the issue was the price level of commodities, In Q3, cut prices have further gone REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2022 / 1:00PM, A2.MI - Q2 2022 A2A SpA Earnings Call up if we consider gas scenario, electric scenario that goes on like this in the other parts of the year. So I'd like to know what is going to happen in terms of net income? And how do you explain this based on the scenario that you projected? And then a risk on hydroelectric production. You mentioned a coverage of 80% fixed price for the second part of the year. Then you said 90%. So what are the terawatt hour that you sell at a fixed price for hydroelectric production? And how many do you expect to actually have? And what is the unbalanced risk, meaning losses like the ones that happened to ENEL. Do you have a contingency plan about this have you somewhat worked out how to avoid buying on the market at the electricity that you cannot produce for EUR 100 per megawatt hour versus EUR 70 at the moment? And then what kind of solutions are you taking into account for your debt? You have very strong CapEx. You have a very interesting dividend policy? How can you manage all of this during 2023, in particular? I wonder what kind of investments are you making? Are you going to reduce investments? And what about your dividend policy? Is that at risk? Because I believe the main objective set of remaining investment grade as a company.

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Well, let me step in because I'd like to have a comment on the spark spread. Do you have any advantage in this situation? Or do you have any stoppage plans investments? If I'm not wrong, we have 300 megawatts of new capacity for renewable sources of energy and then important investments for the Waste Business unit. Can you give us some color here? Do you have something which is still to be authorized? Or do you still have something in the pipeline? And then -- the asset rotation speaking of EUR 2 billion of the asset rotation, do we have to expect some disposal? You sold 30% at premium at [europe]. Do we expect something else there?