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    Snam Enjoys Sales Boost in H1 on Higher Tariffs

Summary

The Italian gas grid operator enjoyed stable results in the first half, unlike many in the oil and gas industry.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Premium, Corporate, Companies, Europe, Infrastructure, , News By Country, Italy

Snam Enjoys Sales Boost in H1 on Higher Tariffs

Italian gas grid operator Snam reported a 3.3% bump in first-half revenues on July 30, as higher tariffs more than countered the impact of the Covid-19 pandemic and milder weather.

The company posted €1.35bn ($1.6bn) in revenues in the six months, up from €1.3bn a year before. Most of these revenues came from its gas transport business in Italy, which benefited from a revision in its tariff mechanism by authorities.

Core earnings (adjusted Ebitda) were stable yr/yr at €1.11bn while adjusted net profit came to €578mn, again in last with the amount in the first half of 2019. Snam has a full-year guidance for net profit unchanged at €1.1bn and expects minimal impact from the pandemic on its investment plans, it said.

Snam also has a burgeoning international pipeline business. It teamed up with a group of international investors in June to take a 49% stake in the gas system of the UAE's Adnoc for $10.1bn. At home in Italy, it is testing the injection of hydrogen into the national grid, in order to reduce Italy's emissions.