Italy's largest regional utility A2A (A2.MI) scaled back its planned investments aimed at reducing its carbon footprint as volatility in energy markets prompted a rethink, sending shares down as much as 6%. A2A confirmed its dividend policy under the new plan, which foresees a 3% compound annual growth, Chief Executive Renato Mazzoncini said.The Milan-based utility said it now planned to invest EUR 16 billion (USD16.5 billion) by 2030 to focus on the circular economy and energy transition projects, rather than the EUR 18 billion previously indicated. Mazzoncini told analysts that at the end of September, customer requests to break electricity and gas payments into installments had risen eight times compared to 2019 and five times from the first nine months of 2021.That took away hundreds of millions of euros from investments, he said. By 1505 GMT, the stock was down 1.9% at EUR 1.274 per share, the worst performer on Italy's blue-chip index (.FTMIB), which was losing 0.08%.
Intesa Sanpaolo's analysts said the new spending target reflected changed economic conditions. The regional utility had last updated its strategy in January, when it raised planned capital spending to reduce its carbon footprint by 12.5% to EUR 18 billion while targeting a core profit of EUR 2.9 billion by 2030. This year "has been characterized by a complex geopolitical and economic situation and a volatile energy scenario," CEO Mazzoncini said in a statement. "In the light of this context, we have decided to update our plan to continue guaranteeing the Group's solidity and face the upcoming challenges," he added. Italy's economy minister said in September that net energy import costs were set to more than double this year to nearly EUR 100 billion, warning Rome could not spend indefinitely to cushion the blow. Italy relies on imports for three-quarters of its power consumption, increasing its vulnerability to Europe's current energy crisis.
