Snam: first half 2020 results in line with 1H 2019, increased investments and net profit guidance confirmed despite the impacts of COVID-19
- Total revenue: 1,346 million euros (+3.3% compared with the first half of 2019);
- Adjusted gross operating margin (adjusted EBITDA): 1,107 million euros, in line with the first half of 2019;
- Adjusted net profit: 578 million euros, in line with the first half of 2019;
- Technical investments: 457 million euros, including 111 million euros SnamTec investments in innovation and energy transition (+49 million euros compared with the first half of 2019, despite the slowdown due to COVID-19);
- Net financial debt: 12,888 million euros (11,923 million euros at 31 December 2019; +965 million euros), including the outlay related to the acquisition of interest in OLT and share buyback activity, with an average gross debt cost of 0.9%;
- 2020 net profit guidance: confirmed at approx. 1.1 billion euros;
- International development: completed the acquisition of 49% of ADNOC Gas Pipelines in consortium with five international funds;
- Energy transition: contracts signed for the acquisition of 50% of Iniziative Biometano (agricultural biomethane) and of 70% of Mieci and Evolve (energy efficiency), with closing expected by the third quarter;
- Sustainable mobility: Snam4Mobility continues its international expansion thanks to Cubogas, which has been awarded a third tender for public transport in Paris;
- Sustainable finance: first issue of a 500 million euros Transition Bond successfully completed.
San Donato Milanese (MI), 30 July 2020 - The Snam Board of Directors, which met yesterday chaired by Nicola Bedin, approved the Consolidated Interim Financial Report as at 30 June 2020 (subject to a limited audit of the accounts).
Marco Alverà, CEO of Snam, commented:
"The results of the first half of 2020 are in line with those of the same period of 2019, and the guidance on net profit of approx. 1.1 billion euros at year-end is confirmed despite the effects of Covid, thanks to the reduction of financial expenses, the performance of our international associates and the cost control measures.
In the past few months Snam has not stopped, continuing to uphold its essential energy security service, increasing investments and laying the foundations for a quick restart. Since the beginning of June, we have resumed operations in 100% of our construction sites and by the end of the year we are aiming for a substantial recovery of delays caused by the lockdown. At the same time, we have continued our international expansion with the entry into the Abu Dhabi networks and boosted new business growths, through acquisitions in energy efficiency and biomethane as well as agreements and experiments in the hydrogen sector. We have also strengthened our commitment to sustainable finance with the issue of the first Transition Bond.
Our goal is to accelerate Snam’s development by contributing to the revitalization of the economy and to the energy transition, for the benefit of all our stakeholders and the territories in which we operate".
27 August 2020 - 15:47 CEST