Snam, increases profit and revises guidance upwards

Snam closes the first quarter with an adjusted group net profit of €335 million, up 11.3% compared to the same period of 2023. The result, a note explains, is due to the effect of the growth in ebitda, which amounted to €703 million (+17.8%). Total investments amounted to EUR 462 million (+47.5%), due to higher investments related to the upgrades of the Ravenna and Piombino terminals. 55% of total investments are aligned with the Sustainable Development Goals and 34% with the European Taxonomy. Total revenues amounted to EUR 895 million (-1.9%). Regulated revenues related to the realisation of the investment plan, the increase in WACC and higher output-based incentives were up; revenues from the energy efficiency business, particularly in the residential sector, were down. Net financial debt amounted to EUR 15,793 million (+EUR 523 million compared to 31 December 2023), up mainly due to the investments made in the period and the payment of the 2023 interim dividend.

The group revises upwards its 2024 guidance for ebitda and net profit. In detail, Snam expects an ajusted ebitda level of over EUR 2.75 billion and an adjusted net profit level of around EUR 1.23 billion. Investments have also been revised upwards, and are expected to grow to EUR 3 billion, of which EUR 2.8 billion in gas infrastructure and EUR 0.2 billion in energy transition. The level of net debt is expected to be around EUR 1.75 billion and the tariff Rab at EUR 23.8 billion.

According to management, in a global environment that continues to be uncertain, high interest rates will continue to have an incremental impact on financial expenses during 2024. The main levers for optimising the financial structure concern an increasing diversification of financing sources and instruments, as well as the dynamic management of working capital and treasury flows. At the same time, Snam intends to maintain a solid financial structure, capable of maximising the natural hedging implicit in the tariff system through periodic reviews of the recognised cost of capital.

"The solid results achieved and the visibility of our business allow us to improve our 2024 guidance on ebitda and net profit, with a significant acceleration on the targets set out in our business plan". This was stated by Snam's CEO Stefano Venier, commenting on the first quarter figures. "The first quarter 2024 results are very positive, with investments and key indicators growing strongly, both for domestic activities and those of our associates, against a backdrop of continued volatility at a global level," he added.