Satisfactory quarterly results for Snam, which in a year conditioned by Covid managed, in the first nine months, to exceed 2 billion in revenues (+4% compared to the same period of 2019) and also to adjust adjusted net profit ( 873 million euros, +0,7% compared to the first nine months of 2019, also thanks to actions to optimize the financial structure) and adjusted EBITDA at 1.670 million euros (+0,5%). In this 2020 the group led by Marco Alverà also has insisted on technical investments, for 762 million (+17%). In particular, it was the year of the great push on hydrogen, with the agreements signed with FS Italiane for the development and diffusion of hydrogen railway transport in Italy and with the British ITM Power for commercial and technological collaboration in green hydrogen and the simultaneous entry of Snam as a shareholder.
On the dividend front, the group will pay a down payment of 0,0998 euro per share for 2020, while the S&P rating also improved: long-term BBB+ confirmed, but with a negative to stable outlook. “Our results for the first nine months of 2020 - commented Alverà -, despite the context of great uncertainty due to the pandemic, are in line with those of last year thanks to the solidity of the core business, the growing contribution of new businesses in the energy transition and cost containment measures. We are increasingly strong in the energy transition thanks to the acquisitions in biomethane and in public and private energy efficiency in Italy and the launch of our first green hydrogen initiative with ITM Power”.
“We have increased investments compared to 2019 – concluded the CEO – e quickly made up for delays in the works thanks to the commitment of all our people, continuing to guarantee the essential energy security service in all the territories in which we operate. At the same time, development in new markets continued, in particular with the entry into the networks of the United Arab Emirates. We continue to work to make Snam more and more a protagonist of the energy transition, more international and close to all its stakeholders".
The accounts are less good Tenaris, which however is the case of the Stock Exchange of the day, given that by mid-morning the stock had managed to gain more than 12% in the 5 euro per share area. The numbers confirmed the worsening of the main income statement items, as a result of the contraction in drilling activity, following the measures taken to counter the pandemic due to Covid-19. In the period January-September 2020 revenue fell to $4,02 billion, a decrease of 28% compared to the 5,55 billion realized in the first three quarters of last year.
The company's turnover was affected by the sharp contraction in drilling activity, particularly in North and South America. The operating result of Tenaris also deteriorated markedly, which went from a positive $680,62 million to a negative $670,46 million as low capacity utilization failed to absorb high fixed costs. The final result also deteriorated sharply, going from a profit of 590,91 million to a loss of 740,98 million dollars. In the third quarter alone, to give an idea, Tenaris' revenues fell by 43%, going from 1,76 billion to 1,01 billion dollars.
Tenaris explained that "investments in oil and gas exploration and production will recover only slowly", in the face of the second wave of Covid-19 infections which is holding back the recovery of the global economy. However, however, the results were significantly better than expected (for example Bloomberg estimated a turnover in the quarter of 950 million, instead it was more than one billion) and this has reassured investors, who are buying Tenaris shares this morning.
