Corporate Credit Rating 2025 for ESA SPA SB: B1 (Affirm)

modefinance published the Solicited Corporate Credit Rating of ESA S.P.A. SB on the website and the rating assigned to the entity is B1 (Affirm). The analysis revealed that the company has an adequate economic-financial situation with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

ESA S.p.A. SB is an established player in the utility sector, active since 2005 and specialized in the trading of electricity and natural gas, both on the wholesale market and to end customers. The Company operates through a network of approximately 80 Energy Points located across Abruzzo, Molise, Lazio, Marche, and Sicily. ESA operates as a dispatching user, allowing it to procure energy directly from the market, as well as from renewable energy producers, wholesale operators, and resellers.

As of December 2024, the Company had expanded its customer base by 21% year over year, primarily driven by the acquisition of a residential customer portfolio, supported by internal commercial development initiatives. Customer retention showed a moderate improvement in 2024 compared to 2023, although the churn rate remains above sector medians.

ESA is a wholly owned subsidiary of ESA ITALIA S.r.l. (hereinafter also referred to as the “holding company” or “ESA ITALIA”), which operates in the sale of utility services and technical support solutions. Through its subsidiary, the ESCo ESA Service 24h, the group also delivers energy efficiency projects for buildings, including interventions on thermal systems (e.g., boilers, heat pumps, solar thermal systems) and electrical systems (such as photovoltaic installations and wall boxes).

In the 2024 financial year, the sharp increase in volumes sold led to a substantial growth in the turnover of ESA S.p.A. SB (hereinafter also referred to as the “Company” or “ESA”), which reached 123.0 million euros, representing a 90% year-on-year increase. This strong performance, combined with the capitalization of commercial costs solely related to external customer acquisition, enabled the Company to significantly improve its operating margins, with a positive impact on both net profit and overall profitability. To support customer portfolio acquisitions and the related working capital requirements, the Company secured short-term bank financing totaling over 14 million euros. As a result, solvency indicators temporarily deteriorated, with a financial leverage ratio of 1.4 and a total leverage ratio of 3.7 as of December 31, 2024. Nonetheless, these levels remain well-balanced thanks to the strengthening of shareholders’ equity, which rose to 15.4 million euros. This increase was primarily due to the shareholders' decision to reinvest the net profit of 5.2 million euros, limiting dividend distributions to just 0.3 million euros. Despite the increased use of debt, the Net Financial Position (NFP) improved to 3.7 million euros, up 1.3 million compared to December 31, 2023, as a substantial portion of the financing remained unused at year-end. From a balance sheet perspective, the Company demonstrates a solid financial structure, with an appropriate alignment between sources and uses of funds, as evidenced by a current ratio of 1.25.

During 2024, ESA recorded a significant increase in liquidity (+14.2 million euros), mainly driven by the aforementioned bank funding. Additional contributing factors included the replacement of 1.9 million euros in security deposits (primarily with Terna and SNAM) with bank guarantees, as well as the receipt of a 1.7 million euro settlement payment from a former electricity and gas supplier. In 2024, the Company generated a solid operating cash flow, which was primarily deployed to support 6.5 million euros in investments, focused on both the acquisition of customer portfolios and the purchase of highly liquid financial instruments. Concerning working capital management, the Company recorded a notable increase in Days Sales Outstanding (DSO) in 2024, partly reflecting a deterioration in credit quality, as also confirmed by the ageing analysis. Looking ahead, the sustainability of cash flows will depend in part on ESA’s ability to strengthen its credit risk management framework and to contain the accumulation of overdue receivables.

In March 2024, the Company changed its name from SH ENERGIE to ESA S.r.l. Società Benefit, incorporating into its bylaws the principles required by the applicable legislation. The following month, the Company was converted into a joint-stock company (S.p.A.), accompanied by a free capital increase from 1.5 million euros to 8 million euros. The parent company, ESA ITALIA, is in turn owned by three entities ultimately attributable to the Serpellini family, particularly to Mr. Walter Serpellini, who serves as Sole Director of ESA. The Company also has a collegial supervisory body, chaired by Mr. Mauro Marino.

In terms of scale, ESA ranks among the leading companies in its sector, driven by a 90% year-over-year increase in revenue, supported by a sharp rise in volumes sold. On the solvency front, although leverage and financial leverage have deteriorated, the Company's positioning remains in line with the sector median. Overall profitability is solid, with performance levels exceeding those of its peer group. The latter shows adequate and improving solvency metrics, highlighting a sound financial position throughout the reporting period. Liquidity indicators have remained consistently strong. Profitability continues to strengthen, with the median ROE reaching solid levels, supported by the improved results achieved in the latest financial year.

In 2024, energy prices in Italy stabilized due to the expansion of renewable sources, reduced consumption, and favorable weather conditions. However, prices remained above pre-crisis levels due to the impact of fossil fuels. Renewable sources accounted for approximately 50% of electricity generation and are expected to be supported in the future by new investments by Terna and the launch of the MACSE, which aims to incentivize storage systems. At the European level, LNG accounted for 38% of gas imports, effectively offsetting the decline in Russian supplies. As of the end of April 2025, gas storage stood at 47%, with 90% of capacity already allocated for the 2025/26 season, thus ensuring energy security.

In the first quarter of 2025, the Italian economy posted moderate growth, supported by household consumption, underpinned by a stable labor market and rising real incomes. Investments remained weak, constrained by underutilized production capacity and tight financial conditions. Growth was driven by the services sector and construction projects linked to the National Recovery and Resilience Plan (NRRP), while manufacturing showed signs of recovery, though it remains vulnerable to rising tariffs and geopolitical uncertainty. The Bank of Italy forecasts GDP growth of 0.6% in 2025, followed by 0.8% in 2026 and 0.7% in 2027.

The present Corporate Credit rating is issued by modefinance under EU Regulation 1060/2009 and following amendments.

The present rating is solicited and is based on both private and public information. The rated entity and/or related third parties have provided all private information used. Modefinance had access to some accounts and other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available at http://cra.modefinance.com/en

The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0. A comprehensive description of both methodologies, as well as information on Modefinance Rating Scale and Mappings, is available at http://cra.modefinance.com/en/methodologies.

For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.

modefinance refers to default as a company under bankruptcy, or under liquidation status, or under administration or for which missed payments on a financial obligation are officially recorded.

The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory.

Please note that modefinance does not perform any audit activity and is not in a position to guarantee the accuracy of any information used and/or reported in the present document. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation.

No amendments were applied after the notification process.

The rated entity is not a buyer of ancillary services provided by modefinance. 

The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.

The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.

Head Analyst - Carmela Santomarco, Rating Analyst
carmela.santomarco@modefinance.com

Assistant Analyst - Tommaso Viola, Rating Analyst
tommaso.viola@modefinance.com

Responsible for Rating Approval - Naomi Busdon, Rating Process Manager
naomi.busdon@modefinance.com