Snam on top, market promotes accounts and higher guidance 2024

(Il Sole 24 Ore Radiocor) - Snam in Piazza Affari, which leads the FTSE MIB . The company at closed markets releasedthe accounts for the first quarter which saw adjusted group net profit of €335 million, up 11.3% compared to the same period in 2023. EBITDA rose to EUR 703 million (+17.8%). Total investments amounted to EUR 462 million (+47.5%) while total revenue stood at EUR 895 million (-1.9%). The group led by Stefano Venier revised upwards the Guidance 2024 for ebitda and net profit. In detail, the company forecasts an ajusted ebitda level in excess of EUR 2.75 billion and an adjusted net profit level of approximately EUR 1.23 billion. Capital expenditure is also revised upwards to EUR 3 billion, the level of net debt is expected to be around EUR 1.75 billion, and the tariff Rab to be EUR 23.8 billion.

According to Rbc's analysts (who have an Outperform rating with a EUR 5 target price), the acceleration of investments 'to replace Russian gas and, subsequently, green hydrogen should raise its capital base above the average compared to European grid competitors. We estimate that its hydrogen backbone could require EUR 4 billion of investment until 2030-32 and hydrogen storage could require EUR 3 billion until 2030-35'. The brokers estimate a Rab of about '6% in the period 2023-2027'. Jp Morgan believes that 'the market will read the upgrade' in guidance 'as asignal of confidence not only on 2024 results, but also on earnings prospects under the new Ross regulatory framework. This, in our view, should help boost confidence in the medium-term outlook'.