Corporate Credit Rating 2025 for AGF ENERGY SPA: B1- (First Issuance)

modefinance published the update of the Solicited Corporate Credit Rating of AGF ENERGY S.P.A. on the website and the rating assigned to the entity is B1- (First Issuance). The analysis revealed that the Company has an adequate economic and financial situation and can face adverse economic conditions in the medium and long term.

AGF ENERGY S.P.A., established in 2018 and headquartered in Bari, specializes in the supply of electricity and natural gas. Over the past two years, the company has experienced significant growth, largely driven by its transition to a retail customer base and strategies aimed at strengthening its brand presence nationwide. In addition to its core activities in the energy sector, AGF ENERGY S.P.A. is also active in the construction industry, with a focus on the development of energy-efficient buildings. The company also provides rental services for industrial construction machinery.

At an overall level, AGF ENERGY S.P.A. demonstrates adequate economic and financial health, with notable improvements compared to the fiscal year 2023. The solvency position indicates a gradually strengthening, though still weak, level of capitalization. However, financial exposure remains contained and largely sustainable. The accumulation of tax liabilities— a measure taken to free up liquidity in support of growth objectives—continues to impact the company’s short-term financial balance. This is further affected by substantial security deposits paid to suppliers and distributors within the energy sector.

In 2024, sales revenue increased by 105%, rising to EUR 59.71 million from EUR 29.12 million during the same period the previous year. Additionally, EBITDA grew by an impressive 262%, reaching EUR 4.35 million, with the sales margin strengthening from 4% to 7%. The significant growth in operating margins - supported by the acquisition of the 'AGF Energy' brand and the elimination of significant third-party asset costs - contributed to a net profit increase to EUR 2.68 million, reflecting clear improvements across key profitability indicators. Increase levels of self-financing, along with resources released through working capital management, enabled the company to support substantial investments during the year, while limiting reliance on external financing.

In recent years, AGF ENERGY S.P.A. has enhanced its governance and control structure by establishing collegiate administrative and supervisory bodies. The company has also entrusted a leading specialized firm with the legal audit of its financial statements. Additionally, the adoption of an Organizational and Management Model in accordance with Legislative Decree 231/2001 is currently in its final stages. AGF ENERGY is now wholly owned by the newly formed AGF Corporation S.r.l., a holding company founded by the two original creators of AGF ENERGY, Mr. Albergo Francesco Dimitri and Mr. Gironda Veraldi Andrea.

The company excels in both turnover and profitability when compared to its reference peer group, ranking it in the top quartile of the distribution. However, its solvency position is comparatively weak, particularly in relation to median sector levels. This is primarily due to a limited capital base, which contributes to maintaining high leverage levels. Peer group companies, by contrast, exhibit adequate capitalization, with balanced financial leverage, while profitability levels are satisfactory and improving.

The fundamentals of the energy sector in Italy have improved, driven by the stabilization of gas and electricity prices, which had previously been highly volatile and reached record levels in 2022. However, the growing importance of LNG (liquefied natural gas) in the energy mix – accounting for 42% of EU gas imports in 2023, up from 20% in 2021 - as a substitute for Russian pipeline gas, has led to higher supply costs. This also exposes Italy to the risk of potential price increases driven by global market dynamics, such as rising gas demand in Asia and changes in shale gas extraction policies in the U.S.

Italy’s GDP growth has been modest in 2024, constrained by tight financial conditions associated with high interest rates in the eurozone, and by inflation still above 2%, which has negatively impacted household spending and investment. Additionally, global economic growth faces further slowdown due to hightened geopolitical tensions in the short term.

The present Corporate Credit Rating is issued by modefinance in accordance with EU Regulation No. 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 purchased ancillary services from modefinance (preliminary rating). modefinance ensures that such situation does not imply a conflict of interest in the issuance of the present credit rating.

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