Approval of the submission of the Development Program 2021-2025 to RAE by EDA THESS’ BoD

The new Development Program 2021 – 2025 which incorporates the Company’s Business Plan, was approved on 12/11/2020 by EDA THESS’ Board of Directors and submitted to the Regulatory Authority for Energy, following the report of the General Manager, Mr. Leonidas Bakouras and the consent of the shareholders DEPA Infrastructure and Eni gas e luce.

The new program foresees total investments of € 158.2 million, with an increase of € 8.2 million compared to the previous one and creates new growth prospects, making EDA THESS a leader in the Greek energy market. The strategy of the program is based on financial, commercial, technical and environmental factors that guarantee the Company’s strong development. It is structured according to the following main strategic pillars:

• Increasing the natural gas penetration
• Expansion and Enforcement of the distribution network
• Digital Transformation
• Implementation of efficient investments to ensure high return to shareholders

Key points

• Investments of € 141.1 million related to the development and enhancement of natural gas distribution network infrastructure.
• Expansion of the low and medium pressure network by 595 km
• 90,350 new connections
• 580 million Nm3 of distributed gas volumes in 2025
• € 8.8 million investments in information systems, new technologies and other business requirements, aiming at the Company’s digital transformation through the digitization of processes for the information security and the optimization of the provided services. The project will reduce operating costs and assist the increase of the return on investment.
• € 8.3 million for the implementation of a complete installation plan of 136 thousand smart meters and the development of intelligent metering systems.
• Dividend policy with fair and stable return to shareholders that guarantees dividend distribution annually.
• Providing optional services to other operators to disseminate know-how and best network operation practices resulting in increased revenue.
• Methane emission reduction program with the introduction of new technologies and collaborations with European Distributors. Thanks to the new innovative network inspection systems, methane emissions and the required maintenance and management time of gas leaks are reduced. The project enhances the security level of the distribution network and reduces maintenance costs.

Following the decision of approval by the BoD and submission of the Development Program - Business Plan 2021 - 2025 to RAE, the Chairman of the Board, Mr. Ioannis Tsitsopoulos stated in this regard:

"The new development program 2021-2025 certifies the Company’s continuous upward course but also its strong will to move dynamically with sustainable investments in order to meet the growing needs of Municipalities and citizens in natural gas. We continue to face energy challenges with planning and efficiency. Congratulations to the General Manager, to the executives and employees of the Company who have managed with hard work to turn it into a healthy and sustainable company with an international impact".

 

For his part, Mr. Bakouras stated that “it is an ambitious Sustainable Investment Program amounting to € 158.2 million for the development of the natural gas market in Thessaloniki and Thessaly, which includes approved figures and reasonable assumptions following the regulatory decisions taken by the Authority. At the heart of the strategy is the digital transformation of the Company's operations, an ongoing process, and the investment in innovative technologies that will enable the transition to the decarbonization of the energy system and the integration of renewable gases”.

 

Achieving business goals at 100% for 2020. EDA THESS completes its investment plan of € 36 million for 2020, adding more than 22,000 new consumers to its network and with operating profitability (EBITDA) which is expected to reach €42,9 million, an increase of 3.37% compared to 2019.

 

Given the effects of the pandemic, EDA THESS took effective decisions to ensure continuity in its operational activity. This is evidenced by the strong results it presents throughout the year. With all the tools for the management of emergency situations, EDA THESS continues at a rapid pace its strategic planning for the next 5 years.