In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Snam SpA (SNMRF) reported an 8.3% year-on-year increase in adjusted EBITDA, reaching 761 million, driven by growth in regulated revenues.
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The company achieved a 21.2% year-on-year increase in adjusted net income, totaling 406 million, supported by higher EBITDA and contributions from associates.
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Snam SpA (SNMRF) successfully completed the acquisition of Edison Stoani and sold a stake in a gas pipeline, resulting in a capital gain of 120 million net of taxes.
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The company made strategic progress by entering the German energy infrastructure market through the acquisition of a 24.99% stake in OpenGrid Europe (OGE).
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Snam SpA (SNMRF) maintained a stable average cost of debt at 2.5% and received a credit rating upgrade to A- by Standard & Poor's, reflecting a strong financial profile.
Negative Points
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Investments decreased by 22% compared to the first quarter of 2024, following the completion of the Ravenna LNG terminal.
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Net debt increased to 16.8 billion, primarily due to investments and the payment of a 400 million interim dividend.
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The company faces regulatory challenges, with the need for simplification in Italy's regulatory framework being highlighted by investors.
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The energy efficiency sector is underperforming, with no immediate consolidation opportunities identified.
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The hydrogen investment prospects remain uncertain, with economic viability challenges highlighted by recent industry developments.
Q & A Highlights
Q: Can you provide more details on the expected evolution of the associates' portfolio income for the rest of the year? Also, what are your thoughts on simplifying regulation in Italy? A: Excluding the OGE contribution expected from Q3, we anticipate an overall contribution of over 350 million for the full year, mainly driven by Austria. Including OGE, we expect just shy of 370 million. Regarding regulation, the board renewal of Arrera is expected by July, which might influence simplification efforts. However, Italian regulation is considered reliable across Europe, so any simplification will take time. (Respondent: CFO)
Q: What are the implications of the EU's plan to end dependency on Russian gas by 2027 for the EU's security of supply and gas transmission networks? A: The phase-out of Russian gas, which currently contributes 10-15% of total consumption, is feasible with new infrastructure like the Ravenna LNG facility. Europe has spare capacity in LNG terminals, which can help phase out Russian gas. However, this depends on the geopolitical situation in the next two years. (Respondent: CEO)