Snam H1 Profit Climb 11%
Italian gas infrastructure firm Snam recorded a 11.1% yr/yr growth in net profits in the first half, on the back of increased transport earnings, lower financial charges and a greater gain from equity investments.
In results published on August 1, Snam reported €581 ($642)mn for the six-month period, up from €523mn ($641.5mn) a year earlier. Earnings before interest and tax (Ebit) grew by 3.7% yr/yr to €756mn, while revenues were up 4.8% at €1.33bn.
The upswing in revenues was largely thanks to higher regulated revenues from Snam’s gas transport business, the company said. The impact on Ebit was partially offset by a 6% increase in amortisation and depreciation charges to €335mn.
Beyond these factors, income benefited from higher profits from equity investments, chiefly in French grid operator Terega and Snam's stake in Greek operator Desfa, acquired in late 2018. Profits were also buoyed by lower financial costs, owing to Snam’s optimised financial structure and good market conditions.
“In the first half of the year we achieved growing results, in line with the objectives of our plan, laying the foundations for another year of value creation for all our stakeholders,” Snam CEO Marco Alvera said.
Beyond its assets in Italy, Greece and France, Snam is also involved in gas grids in the UK and Austria, as well as the Trans-Adriatic Pipeline (TAP) due to provide Azeri gas to Italy starting next year.
“Gas infrastructure has confirmed its central role in the decarbonisation process, guaranteeing flexibility and security of supply in the context of a 17% increase in volumes in the thermoelectric sector, resulting in a decreasing proportion of coal-fired power generation,” Alvera said.
The company is investing in LNG and CNG filling stations and it has experimented with hydrogen injection to lower the carbon intensity of the energy carried to industrial consumers through its transmission system.