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    Snam Hikes Profits in 9M 2019

Summary

Snam cited strong performance from its core business.

by: Joseph Murphy

Posted in:

Natural Gas & LNG News, Europe, Corporate, Investments, Financials, Infrastructure, News By Country, Italy

Snam Hikes Profits in 9M 2019

Italian gas infrastructure firm Snam achieved a 9.3% year-on-year increase in net income for the first nine months of 2019, to €867mn ($954mn), according to company results published on November 14.

The record high injections into storage across Europe this year have boosted the profits of the region's transport and storage operators, while LNG imports have also been generally very high.

Revenues climbed 4.3% to €1.95bn, while core pre-tax earnings (Ebitda) rose by 4.1% to €1.66bn, thanks to operating cost control. Technical investments grew by 15.3% to €650mn, while Snam’s net debt crept up 2.8% to €11.87bn.

“The results of the first nine months confirm Snam’s growth, with an almost 10% increase in net income due to the positive performance of our core business, the development of our associates and the continuous optimisation of our financial structure,” CEO Marco Alvera said.

Snam's core business is pipeline and storage operation, as well as LNG regasification. It is set to expand its footprint in the Italian gas sector further, after cutting a €345mn deal in September to buy a 49.1% stake in the 3.75bn m3/yr OLT LNG import terminal.

The company also manages Italy's 3.5bn m3/yr Panigaglia LNG terminal, has a share in the country's 8bn m3/yr Adriatic LNG terminal, and is also involved in the development of the 6bn m3/yr Revithoussa LNG terminal in Greece.