Over seven billion investments to push the energy transition. This is the amount allocated by Snam in the 2020-2024 strategic plan approved by the Board of Directors and presented today, 25 November.
In detail, the company led by Marco Alverà expects to increase investment by one billion deuro compared to the previous plan, bringing them to 7,4 billion, of which 6,7 intended for regulated energy infrastructures (replacements in terms of hydrogen ready, digitalisation, decarbonisation and Sardinia). Investments in energy transition businesses doubled to 720 million, which will be divided as follows: 220 million in biomethane infrastructure to reach a capacity of at least 64 MW, 200 million in energy efficiency, 150 million in hydrogen for the start-up of projects conversion of railway sections and the installation of fuel cells on the Snam network, 150 million in mobility to increase the distribution infrastructure with a focus on Lng and start up the first hydrogen distributors.
"The 2020-2024 plan - comments the CEO of Snam Marco Alverà - opens a new phase in the history of Snam, which in the climate challenge is well positioned to play an enabler of the energy transition, with a long-term vision consistent with its mission and European objectives. Snam will be one of the first energy companies to catch up carbon neutrality in 2040 and will make a large contribution to the decarbonisation of the system through the development of green gases and in particular hydrogen”.
Snam forecasts that the RAB (regulated asset base) will grow by an average of 2,5 per year over the period of the plan, while net income is expected to grow by an average of 2,5% per annum and earnings per share are estimated at +3,2%. Average annual growth over the plan period of 3,3% is expected for Ebitda.
As regards the dividend, which for the 2020 financial year will be 0,2495 euro, Snam “confirms its commitment to guaranteeing shareholders an attractive and sustainable remuneration and the payment of an interim dividend. It is confirmed dividend per share growth of 5% until 2022, with a further minimum growth of 2,5% in the period 2023-2024″.
Moving on to 2021 guidance, net income will rise by 3%, the level of debt will reach 13,5 billion (taking into account the planned investments for the year of 1,4 billion). Rab will reach 21 billion in 2021.
As CEO Marco Alverà explained, Snam is committed to achieving carbon neutrality by 2040, in line with the target of containing global warming to within 1,5 degrees set by the Paris Agreement.
The perspective, to 2050, is of transport entirely decarbonised gas to make Italy a European hydrogen hub“, explains the company. Also for this reason, 50% of the investments envisaged in the plan are dedicated to the 'hydrogen ready' infrastructure (replacement and development of assets with 'hydrogen ready' standards). Alverà then specified that it is extremely important, in this phase, to make future proof investments, capable of holding up in the long term, with a view to reaching 15-20% of hydrogen on energy consumption in 2050. Hence the need of a strong collaboration with the EU, also in terms of the definition of common rules that do not exist today and the prospect of two years of further study and analysis on the issues of transport, storage (if, for example, those of natural gas can also be used for the 'hydrogen). However, Italy is well positioned at the European level because, among other things, the green hydrogen on which Snam is betting is that from solar energy which has lower costs than that produced with wind power in Northern Germany. And this represents a competitive advantage with a view to exporting Italian H2 to Europe.
As regards instead the gas pipeline Tap, of which Snam owns 20%, commercial operations started last week.
Lastly, Snam communicates its intention to strengthen the efficiency plan launched in 2016, with over 70 million in savings expected by 2022, and to optimize the debt structure with a focus on sustainable finance.
“The repositioning of the company that has taken place in recent years and the actions envisaged in the new plan, also thanks to the skills of our people and ever-increasing digitalization, put us in the right position to seize the opportunities deriving from the energy transition. – explains Marco Alverà – We are among the pioneers in the development of hydrogen and we grow rapidly in other businesses which are strengthening the entire green gas value chain. We are becoming an international operator, with a focus on the most relevant areas of the world for the development of natural gas to replace more polluting fuels and for the energy transition. The concepts of economic, environmental and social sustainability are increasingly an integral part of Snam's business model, in which ESG factors guide choices for the benefit of all stakeholders".
