Snam, the Italian gas grid operator, has announced its financial results for the first half of the year, showing an increase in net profit and revenue. The company reported a net profit of €698 million ($773.8 million), up from €686 million in the same period last year. Revenue also saw a significant rise, reaching €2.09 billion compared to €1.68 billion previously.
Operating income for Snam rose to €758 million, marking a notable increase from €707 million in the year-earlier period.
Looking ahead, Snam anticipates potential challenges in the coming years. The company expects its 2023 performance to be affected by higher interest rates and a slowdown in natural gas demand in Italy. These factors are primarily due to milder weather conditions, demand containment measures, and a decline in thermal generation. Additionally, Snam notes an increase in electricity imports and hydroelectric generation, further impacting the demand for natural gas.
Despite these challenges, Snam remains confident in achieving its full-year guidance. The company foresees an adjusted net profit of approximately €1.1 billion for the year. Furthermore, Snam plans to invest €2.1 billion in 2023, representing a 10% increase compared to the previous year’s investments.
Looking ahead to the second half of the year, Snam expects a further decrease in gas flows from Russia to Europe. This decline follows a trend observed in 2022.
Snam’s positive financial results highlight the company’s resilience amid changing market conditions and its commitment to future growth.