Corporate Credit Rating 2025 for UNION SRL: B1- (First Issuance)

modefinance has published on its website the Corporate Credit Rating (Solicited) of UNION S.RL., assigning a rating of B1- (First issuance). The analysis highlights that the company has an adequate financial position, appearing capable of withstanding adverse economic conditions in the medium and long term.

Established in 2017, UNION S.R.L. (hereinafter also referred to as the "Company") is an energy and gas supplier that has built its identity on a fully green business model. This model is based on providing energy from certified renewable sources and adopting innovative solutions that place customers at the center of the energy transition process. Customers are encouraged to promote the use of renewable energy through benefits such as bill discounts and gift cards. They are also given the opportunity to participate in clean energy production and sharing projects. These initiatives have led to a high level of customer loyalty, which has, in turn, helped reduce the costs associated with acquiring and managing new customers.

In 2024, UNION S.R.L. experienced significant growth, driven by a 43.1% increase in the number of Points of Delivery (PODs) and Points of Redelivery (PDRs) under supply. This expansion resulted in a substantial rise in marketed volumes, exceeding 106 GWh of energy and approaching 18 million standard cubic meters (smc) of gas. These figures reflect year-on-year growth rates of 37.1% and 38.7%, respectively. Key drivers of performance included the increase in volumes, continued efficiency gains from the “Sharing Community” business model, direct procurement in energy markets, and the recognition of contingent assets from purchased tax credits. These factors contributed to an increase in EBITDA to €10.27 million (up from €1.92 million in 2023) and a net profit of €6.69 million (compared to €949,000 in 2023). Profitability indicators showed significant improvement, surpassing the median levels of the reference sector. On a capital and financial level, the increase in shareholders' equity — resulting from the year's profits — led to a reduction in the leverage ratio to a balanced 3.49x. It also supported a further improvement in the financial leverage ratio to 0.40x, reflecting limited reliance on external financing. The Company's high liquidity, coupled with minimal financial debt exposure, allows it to maintain a positive net cash position of 3.51 million euros relative to its financial obligations.

UNION S.R.L. has a straightforward ownership structure, with share capital equally divided between Mr. Emmanuelle Cilli and Sogen S.r.l., which is itself controlled by Mr. Marco Tibaldo. The Company is managed by a sole director, while statutory auditing is performed by an external professional. Given the significant growth recorded in 2024 - expected to continue in the coming years - the governance structure and control systems are expected to be progressively strengthened, in line with the Company’s organizational development and evolving oversight requirements.

Compared to sector peers, the Company is positioned close to the median in terms of both revenue and solvency. However, its profitability stands out due to a significant increase in return on equity (ROE) that occurred in FY2024. Between 2021 and 2024, the peer group maintained adequate median solvency levels and demonstrated a sound financial balance. Median profitability levels are expected to increase satisfactorily over the 2023-2024 period.

The fundamentals of the energy sector in Italy have improved, thanks to the stabilization of gas and electricity prices, accompanied by reduced volatility compared to the record levels seen in 2022. However, the increasingly strategic role of LNG (liquefied natural gas) in the energy mix — accounting for 38% of the gas imported by the EU in 2024, up from 20% in 2021 — as a replacement for Russian pipeline gas, entails higher procurement costs and exposes Italy to the risk of potential price increases driven by global market dynamics (such as rising gas demand in Asia, changes in U.S. shale gas extraction policies, etc.).

At the macroeconomic level, GDP growth remained modest in 2024 due to tight financial conditions - with interest rates still high in the Eurozone – and inflation hovering around 2%, which weighs on household spending and investment. Global growth is also potentially affected by heightened geopolitical tensions and a tightening of U.S. trade policy.

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 company purchased ancillary services from modefinance (preliminary rating). Modefinance guarantees that this purchase of ancillary activities does not constitute any conflict of interest.

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 - Stefano Chirsich, Rating Analyst
stefano.chirsich@modefinance.com

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com