Snam closes 2022 "with satisfaction and a pinch of pride". The CEO of the group said so Stefano Venier commenting on the economic results of the past year. The exercise saw a leap in the revenues double-digit (+11,1%), while profitability e Useful down (respectively -0,6% and -4,5%). This was announced by the energy infrastructure company which explains how revenues were driven by the "energy efficiency business", while the decline in regulated revenues of 130 million and higher depreciation and amortization of 53 million weighed on the gross operating margin. Investments increased by 52% to 1,93 billion, while net financial debt decreased. As envisaged instead by the 2022-2026 strategic plan, the dividend at 27,51 cents. The objectives for the current year have been confirmed with investments up by 9% to 2,1 billion euro. The accounts give a little boost to the title: in Piazza Affari it gains 0,11% to 4,61 euros per share.
“The process to equip the country with infrastructures capable of guaranteeing full energy security has just begun – continued the CEO -. In the last 12 months we have faced an extremely volatile scenario which has introduced profound changes in the energy markets and in the structure of the national system, forcing us to react quickly and effectively to guarantee the availability of gas in the immediate and medium term. We presented today to the Board of Directors solid economic and financial results”, concluded Venier.
Snam: 2022 economic results
I revenues totals, net of energy costs, amounted to 3.317 million euros, an increase of 331 million euros (+11,1%). Revenues from the energy transition businesses increased (+325 million euros; +87,8%), mainly due to the development of energy efficiency, particularly in the residential sector. While those of the gas infrastructure business increased by 6 million euros due to the implementation of planned investments and the offer of "output-based" services, as well as one-off positive effects. The reduction in the WACC had a negative impact of 130 million euros, of which 102 million euros related to transportation.
While theadjusted ebitda fell by 0,6% to 2,237 billion with the decrease in regulated revenues, linked to the reduction in the WACC (weighted average cost of capital) for 130 million euros, and the increase in utility costs largely offset by additional revenues and by the greater contribution of businesses linked to the energy transition, as explained by Snam.
Profit down but above guidance
Consequently also theadjusted net profit it decreased by 4,5% to 1,163 billion also due to higher depreciation and amortization (-53 million euros, equal to 6,5%) and the increase in financial charges, partially offset by the positive performance of investee companies. In any case, it was above the guidance indicated by the company which also wrote down the stake in pipeline Tag (340 million) due to the effects of the war in Ukraine which impacted gas transits from the North to Italy, compressing the group's reported net profit to 671 million (-55,1% on 2021). "This devaluation reflects the expectations of future use of the assets, which will remain strategic European assets to support new gas flows from the South," the company specified.
The increase of Financial charges is due, in particular, to the higher charges relating to thedebt net debt mainly connected to the higher average cost of debt which rose from around 0,8% in 2021 to around 1,1% in 2022. The increase in the average cost of debt is mainly attributable to the changed scenario of interest rates interest registered during the year.
Net income from equity investments
Net income from equity investments amounted to €308 million, an increase of €14 million (+4,8%) compared to 2021. Among the investees, in particular, Interconnector Limited benefited from higher capacity bookings especially in export, favored by the current market conditions and the strong availability of liquefied natural gas in the UK, resulting in greater price competitiveness. The increase in income from equity investments was also affected by the greater contribution of the Teréga subsidiaries, mainly due to the higher volumes of gas exported, and DESFA due to the increase in flows from the LNG terminal and exports to Bulgaria.
Total investments growing
“We made investments 50% higher than the previous year, mostly in line with the European Taxonomy and the Sustainable Development Goals,” added Venier.
In detail, the investments totals amounted to 1.926 million euros, up 52% on the previous year. Of these, 1.351 million euros refer to technical investments, +81 million euros compared to 2021 (+6,4%) and mainly relate to the transport sector (1.007 million euros) and storage (172 million euros), while the investments of the businesses linked to the energy transition reached 94 million euros.
The dividend goes up
Based on the economic results for 2022, Snam's management will propose to the Shareholders' Meeting on 4 May the payment of a balance dividend of 0,1651 euro per share, to be paid starting from 21 June 2023 (record date 20 June 2023), with coupon detachment date of 19 June 2023. The dividend for the 2022 financial year is therefore equal to 0,2751 euro per share, of which €0,11 per share already distributed in January 2023 as an interim payment (€369 million). The overall dividend, up 5% compared to 2021, is in line with the dividend policy announced to the market.
2023 targets confirmed
Snam aims to close the 2023 with an adjusted net profit of approximately 1,1 billion euro and a level of net debt between 15 and 15,5 billion euro, depending on the performance of the working capital associated with the regulated activities. Investments of 2,1 billion euros are planned (of which 1,9 billion euros in gas infrastructure and 0,2 billion euros in energy transition), an increase of 9% compared to 2022. And the tariff RAB equal to around 22,4 billion euros, up 5% compared to 2022.
