Snam lift the veil on accounts for the first quarter of 2024. Despite a slight decrease in total revenues (-1,9%), the company recorded significant growth in regulated revenues in the gas infrastructure sector (+22,6%). L'adjusted net profit is growing (+11,3%), driven by the positive performance of the EBIT. There is also a sharp increase inebitda (+17,8%), mainly thanks to the gas infrastructure sector. The investments they scored a 47,5% jump, with a particular focus on the upgrading of the Ravenna and Piombino terminals in the gas sector.
Looking to the future, Snam has revised al rise its forecasts for 2024, with planned investments of 3 billion euros, the majority of which will be earmarked for gas infrastructure. Rate RAB is expected to reach 23,8 billion euros, and adjusted EBITDA and adjusted net profit are also revised to strong growth.
“The results of the first quarter of 2024 are very positive, with investments and the main indicators growing significantly, both for national activities and for those of our associates, in the face of a scenario of continuing volatility at a global level. The solid results obtained and the visibility of our business allow us to improve the 2024 guidance of ebitda and net profit, with a significant acceleration on the objectives set out in our industrial plan", commented the CEO of Snam, Stefano Venier.
All the numbers for Snam's first three months of 2024
As regards the revenues total, net of energy costs, they amounted to 895 million euros, recording a decrease of 17 million euros (-1,9%) compared to the same period of 2023. Specifically, the revenues regulated in the infrastructure business of gas experienced robust growth (+147 million euros; +22,6%), while non-regulated ones remained stable. On the contrary, sectors linked to the energy transition recorded a decline in revenues (-162 million euros; -65,3%), mainly due to the conclusion of residential energy efficiency projects in 2023.
The adjusted net profit in the first quarter of 2024 it reached 335 million euros, marking an increase of 11,3% compared to the same period of 2023. This increase was mainly driven by the growth in ebit, partly mitigated by the increase in financial charges net and income taxes.
The ebitda in the first three months of 2024 it was 703 million euros, recording an increase of 17,8% compared to the same period of 2023. This increase was driven by growth in the gas infrastructure sector, although it was partially mitigated by greater fixed costs due to the entry into operation of the Fsru plant in Piombino.
The operating profit in the first quarter of 2024 it was 450 million euros, showing an increase of 21% compared to the same period of 2023. However, this increase was partly offset by higher depreciation and write-downs relating to the natural gas transportation sector.
- net financial charges reached 78 million euros, showing an increase of 36 million euros compared to the same period in 2023, mainly due to the increase in the average cost of net debt.
I net income from equity investments they amounted to 75 million euros, in line with the same period of 2023 (+1,4%). Finally, the operating cash flow, of 419 million euros, largely financed the net investments of the period, but generated a negative free cash flow of 112 millions of euros.
The net financial debt it increased by 523 million euros compared to the end of 2023, reaching 15.793 million euros.
Investments
In the first quarter of 2024, the investments overall they reached i 462 million euro, recording an increase of 47,5% compared to the same period of the previous year. This notable leap forward was predominantly driven by investments in the gas infrastructure sector, with particular emphasis on interventions strengthening of the terminals di Ravenna e Piombino. Of this funding, 55% was allocated to sustainable development projects, while 34% was aligned with the standards of the European Taxonomy.
Examining the business sectors more closely, it emerges that a significant portion, equal to 319 million euros, was channeled into the transport sector, marking a robust increase of 50% compared to the same period of the previous year. Likewise, the storage and regasification sectors saw an increase in financing, with 46 million euros and 82 million euros invested respectively. Also noteworthy are the investments of 10 million euros in the energy transition sector.
Snam revises its guidance upwards
Based on the first quarter results, Snam has revised al I raise its forecasts for 2024, with planned investments of 3 billion euros, of which 2,8 billion destined for gas infrastructure and 0,2 billion for the energy transition. The RAB tariff is expected to amount to 23,8 billion euros. Adjusted EBITDA is projected to exceed 2,75 billion euros, while adjusted net profit should approach 1,23 billion euros. Net debt should stabilize around 17,5 billion euros.
Recent events
Snam exercised the right of pre-emption to increase his quota in Adriatic LNG at 30% and saw two projects, SoutH2Corridor and Callisto Mediterranean CO2 Network, confirmed as Projects of Common Interest by the European Union. Furthermore, it successfully issued a 750 million euro floating rate bond.
La sustainable finance reached 84% of bond issues, allowing the group to receive the “Transition Bond of the Year” award from Environmental Finance for the second consecutive year.
LNG regasification and storage
In the first quarter of 2024, i regasification volumes recorded robust growth, reaching the figure of 1,24 billion cubic meters, representing an increase of 0,36 billion cubic meters compared to the same period in 2023 (+40,6%). This increase was mainly driven by the entry into operation of the Fsru plant in Piombino, operational since July 2023, which in the first quarter of 2024 regasified a total of 0,74 billion cubic meters, with 8 unloading from methane tankers.
The total storage capacity managed by Snam as of 31 March 2024 reached an all-time high in Europe, equal to 16,7 billion cubic metres, including strategic storage. The natural gas reserves as of 31 March 2024 at the storage facilities controlled by Stogit, a subsidiary of Snam, they amounted to approximately 5,2 billion cubic metres. Added to this are the 4,5 billion cubic meters of strategic storage, with a filling percentage of 60% at the end of March.
From February 2024, Edison e Snam they started negotiations exclusive agreements, still in progress, for the potential acquisition of 100% of Edison Stoccaggio Spa. The latter manages three natural gas storage plants located in Cellino (Te), Collalto (Tv) and San Potito and Cotignola (Ra), with a total capacity of approximately 1 billion cubic meters per year.
