Snam presented the 2017 half-year report with growing profits and revenues. The group also announced the conclusion of the deal with Edison on the ITG pipeline and entry into Adriatica Lng. The Stock Exchange appreciated and the stock started up on Piazza Affari where it is quoted above 4 euros at 9:45 on Wednesday morning.
Snam closed the first half of 2017 with a net profit of 504 million, an increase of 18% compared to the pro forma adjusted figure for the same period of 2016 (-4,2% compared to the accounting figure). Total revenues grew by 2% to 1,27 billion, with operating profit at 714 million (+3,6%). Technical investments rose by 13,6% to 425 million. Free cash flow is $793 million. During the period, 38,08 billion cubic meters of gas were injected into the transportation network (+11,7%), while available storage capacity rose by 3,4% to 12,2 billion cubic metres.
“In the first half of 2017 we achieved positive results – commented the CEO Marco Alverà – Our investments in the national grid are continuing well, with 109 new construction sites opened in the area, of which 23 for the most important projects. The good results achieved and the investments made during the period – he added – confirm the group's commitment to guaranteeing shareholders profitable and remunerative growth”.
Investor interest is also focused on the investment plan scheduled for the 2017-2021 period. Also and above all because, as the group's note specifies, the plan will make it possible to complete the reverse flow towards Northern Europe, a project launched under the management of Carlo Malacarne and aimed at ensuring Snam a central role in gas flows from the Mediterranean (with the pipelines from Libya and Algeria) and from the Caspian (with Tap) with a view to making Italy is a hub due to its strategic position. The purpose of the investment plan, concludes the note from the group, is to "support the development of Italian infrastructures and their interconnection with European ones, strengthening the security, flexibility and liquidity of the entire gas system". The plan envisages "upgrading the transport network, also allowing for the completion of the construction of reverse flow capacity towards other European countries and also welcoming new gas flows from the Caspian region through the Tap pipeline". Just at the end of the morning, the group announced the signing of a 310 million EIB loan for investments in the Italian network. The loan of 310 million euro will be at a fixed rate of 1,5%, will have a duration of 20 years and is part of Snam's policy of optimizing the financial structure, as it is complementary to bond and bank loans and characterized by longer durations at competitive costs.
(updated at 13pm Wed 26 July)
