Stefano Venier, Snam Chief Executive Officer
Snam, the group expects net income to rise by around 3% on average per year
And future more and more “green” e digital that you aim to complete that energy transformation much coveted by pursuing two guidelines: “green molecules” and technology. From now until 2026 the company led by Stefano Venier aims to position itself as hero of the transition, accelerating the completion of the Adriatic line and the development of new storage capacity (+15% with Alfonsine); the development of the “Italian Hydrogen Backbone” through the repurposing of the infrastructure (networks and storage) to support the national demand for green gas and export the additional volumes available from national and/or import production.
All aiming at one investment growth which rise to 10 billion of Euro. In the new Strategic Plan 2022-2026 the company led by Stefano Venier aims for growth‘Ebitda of the average 7%, a Net income which rises by 3% with a Rab which rises by 5% and a dividing with the extension to 2026 of the minimum growth of 2.5% envisaged for the previous years and the confirmation of the commitment on the path of reducing emissions towards carbon neutrality al 2040.
In detail, the expected growth is greater than 5% of Rab in 2022-2026, more than double the forecasts for the previous period of the plan (2021-2025) due to higher investments and the deflator; about 7% ofEBitdacompared to 4.5% in the previous 2021-2025 plan, mainly due to the growth of the Rab (80%), higher remuneration from the regulatory framework, the growing contribution of “output based” incentives and energy transition businesses.
All of these factors will contribute to the Ebitda growth expected group value of approximately 2.85 billion euros by 2026, of which approximately 140 million will be linked to energy transition businesses; by 3% of net profit due to the increase in the industrial profitability of the business and efficiency measures, offset by a growth in Financial charges for the increase in interest rates which are assumed at an average of 2% over the period of the plan, compared to a forecast of 1.1% in the previous plan 2021-2025. Compared to the guidance on 2022 net profit, equal to at least 1.13 billion euros, the projection at the end of 2026 is 1.27 billion euros.
Snam launches investments for 1 billion in the energy transition business sector
Confirmed and extended by one year the policy of dividendswith a minimum annual growth of 2.5% extended to 2026, with confirmation of +5% per share in 2022. Snam expects that for the 2022 financial year, a overall dividend equal to 0.2751 euro per share of which 40% as an advance with payment on 25 January 2023 (record date 24 January 2023), with coupon detachment date on 23 January 2023, as resolved by the Board of Directors on November 9, 2022 while the remaining 60% will be paid on June 21, 2023 (record date June 20, 2023) with coupon detachment date June 19, 2023, to be submitted to the Shareholders’ Meeting which will approve the 2022 financial statements.
As for the total investments, of the 10 billion euros, 9 billion euros are earmarked for gas infrastructure. In particular, 6.3 billion euros on transport (compared to 5.4 billion in the previous plan), including investments relating to the enhancement of Adriatic line and the application of the new methodology for assessing the state of health of assets for grid replacements; 1.3 billion euros for the expansion and the renewal of storage sites (compared to 1.2 billion in the previous plan); 1.4 billion euros earmarked for LNG, with a significant increase attributable to the purchase of the two floating regasification terminals and related infrastructure investments.
The investments in energy transition businesses amount to 1 billion euros. Among the green gases, the biomethane it is the one at the most advanced stage of development and available in a short time. Investments in biomethane in the 2022-2026 plan amount to approximately 550 million euros and envisage over 100 MW of plants in operation by 2026 (with an expected production of approximately 200 million cubic metres).
Over the course of the Snam plan, against a expected debt rise to approximately 18 billion euros in 2026, expects to maintain a credit ratio, both in terms of flow (FFO/Net Debt) and stock (Net Debt/Fixed Asset including subsidiaries), consistent with the current creditworthiness; a mix of fixed and variable debt of around 2/3.
The weight also increases sustainable finance which is expected to rise to around 80% by 2026 compared to around 70% achieved at the end of 2022, in light of the objective of structuring future Snam issues in ESG (Sustainability-Linked-Bond or Use of Proceeds) format. With reference to capital allocation strategy, the implementation of the investment plan remains a priority together with maximizing the value of the assets (of the affiliates). Snam could evaluate one capital rotation strategy for assets considered “non-strategic” to be used for possible non-organic growth opportunities.
Snam launches the new 2022-2026 plan, Venier: “At work to guarantee a carbon neutral future”
Stefano Veniermanaging director of Snamin commenting on the 2022-2026 plan, declared: “2022 was a turning point for the global energy system. In a scenario of extreme uncertainty and volatility, Snam was able to ensure maximum support to deal with the emergency, building the conditions for the actions necessary for the management of the near future. Over the period of the 2022-2026 plan, we will increase investments significantly compared to the past, in order to strengthen our infrastructure and contribute to the country’s greater energy security for the coming years and for the farthest horizon”.
“In parallel, we will continue to work towards a carbon neutral futurefocusing on green molecules: hydrogen and biomethane will accompany our journey, continued Venier, towards carbon neutrality as well as initiatives for the decarbonisation of final consumption, and we have allocated one billion euros to them by 2026″. “In the same time horizon , despite a still unstable scenario, we expect one significant growth of the main economic indicators which can be achieved without affecting our financial solidity with the aim of building a more sustainable, resilient and long-lasting energy system”, concluded the CEO of Snam.
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