Snam Enjoys Sales Boost in H1 on Higher Tariffs
Italian gas grid operator Snam reported a 3.3% bump in first-half revenues on July 30, as higher tariffs more than countered the impact of the Covid-19 pandemic and milder weather.
The company posted €1.35bn ($1.6bn) in revenues in the six months, up from €1.3bn a year before. Most of these revenues came from its gas transport business in Italy, which benefited from a revision in its tariff mechanism by authorities.
Core earnings (adjusted Ebitda) were stable yr/yr at €1.11bn while adjusted net profit came to €578mn, again in last with the amount in the first half of 2019. Snam has a full-year guidance for net profit unchanged at €1.1bn and expects minimal impact from the pandemic on its investment plans, it said.
Snam also has a burgeoning international pipeline business. It teamed up with a group of international investors in June to take a 49% stake in the gas system of the UAE's Adnoc for $10.1bn. At home in Italy, it is testing the injection of hydrogen into the national grid, in order to reduce Italy's emissions.