Revenues, margins and investments grow while profits fall. Thus can be summarized the first three months of 2023 by Snam. In particular, i revenues they grew by 12,9%, driven by those of the energy transition business (124 million euros, +100%), mainly due to the development of energy efficiency, particularly in the residential sector. Also The gross operating margin adjusted grew (+1,5%), so the investments (+4,7%). while theNet income it decreased by 7,4% to 301 million due to the reduction in operating profit and the increase in net financial expenses.
“In the first quarter of 2023 – commented the CEO Stefano Venier – we have achieved solid results even in a context that remains volatile with rising interest rates. We increased the level of investments in the period, also due to the intensification of work in the shipyards in view of the commissioning of the FSRU vessel Golar Tundra, which has been in the commissioning phase since 5 May".
Venier then underlined that "we are approaching next winter with a much more solid and resilient energy system thanks to the storage already 65% full and the infrastructural interventions for safety in progress", while "the solid economic-financial performance of the first quarter allows you to confirm the targets at the end of the year”.
The numbers for the first quarter of 2023
I revenues Total, net of energy costs, amounted to 912 million euros, up by 104 million euros (+12,9%), driven by the growth in regulated revenues linked to the implementation of the investment plan, as well as the significant development of the business energy efficiency, particularly in the residential sector.
THEebitda in the first quarter of 2023 rose by 1,5%, reaching 597 million euros, up by 9 million euros compared to the first quarter of 2022, “due to the contribution of the businesses linked to the energy transition and the increase in revenues adjust,” the note continues.
THEadjusted operating profit in the first quarter of 2023 was equal to 372 million euros, down by 4 million euros (-1,1%) compared to the corresponding value in the first quarter of 2022. While theNet income adjusted in the first quarter of 2023 was 301 million euros, down by 24 million euros (-7,4%), mainly due to the reduction in operating profit and the increase in net financial expenses.
- net financial charges they amounted to 42 million euros, an increase of 13 million euros compared to the first quarter of 2022. The increase is due, in particular, to the higher charges relating to net financial debt connected to the higher average cost of debt which at around 1,5% in the first quarter of 2023 compared to 0,9% in the corresponding period of 2022. Mainly attributable to the rise in interest rates.
I net income from equity investments amount to 74 million euro, down by 5 million euro (-6,3%) compared to the first quarter of 2022. During the period, Snam's operating activities generated a cash flow of 224 million euros which made it possible to only partially finance net investments for 374 million euros and equity investments (SeaCorridor) for 409 million euros (in total -783 million euros, including the change in payables for investment), generating a negative free cash flow of 559 million euros.
salt also thenet borrowing, which recorded an increase of 949 million euros compared to 31 December 2022, reaching 12.872 million euros. “Mainly due to the expected cash absorption generated by the dynamics of working capital connected to the balancing activity, for investments in new shareholdings and for the payment of the interim dividend for 2023”.
Total investments
In the first quarter of 2023, the total investments they amounted to 313 million euro, up by 4,7% compared to the first quarter of the previous year, 46% and 30% in line with the Sustainable Development Goals and the European Taxonomy respectively. Of these, 308 million euros refer to technical investments, +85 million euros compared to the first quarter of 2022 (+38,1%) and mainly relate to the transportation sector (213 million euros), storage (41 million euros ) and regasification (39 million euro), while the investments of the businesses linked to the energy transition amounted to 12 million euro.
2023 guidance confirmed
Based on the results of the first three months, Snam confirmed the financial objectives for 2023:
- investments of 2,1 billion euros (of which 1,9 billion euros in gas infrastructure and 0,2 billion euros in energy transition), up 10% compared to 2022;
- tariff RAB of approximately 22,4 billion euros, up 5% compared to 2022;
- adjusted net profit of approximately €1,1 billion;
- a level of net debt between 15,0 and 15,5 billion euro, depending on the performance of the working capital connected to the regulated activities.
As regards the evolution of management, "the most recent estimates on the evolution of natural gas demand in Italy for 2023 are in line with 2022, influenced by the mild climatic conditions recorded in the recent winter and by the continuation of an uncertain situation on expensive energy with an effect on industrial consumption”, concludes the note.
