Snam S.p.a. · MIL:SRG
Snam — Q3 2023 Earnings Presentation
22 slides from Snam's earnings presentation, Nov 9, 2023
Slide 1: 9M 2023 Consolidated Results
energy to inspire the world 9M 2023 Consolidated Results November 9th, 2023 1
Slide 2: 9M 2023 key highlights
9M 2023 key highlights GAS MARKET FINANCIAL HIGHLIGHTS • 9M 2023 Italian gas demand stood at 44.4 bcm • €1,862m Adj. EBITDA (+9.1% yoy) (-13.8% YoY(1)) • €942m Adj. Net income (+1.1% yoy) (2) • Average TTF price at €40/MWh in 9M 2023 (-70% • €1,232m of Investments (-5.8% yoy) yoy) still experiencing
Slide 3: 9M 2023 key achievements
9M 2023 key achievements SECURITY OF SUPPLY ENERGY TRANSITION • Storage level at approx. 99% • Biomethane tariffs to be reviewed for inflation • Over pressure authorized on 2 additional storage • CCS: facilities • CCS phase 1 project in Ravenna on track • New FSRUs: Piombino slots fully booked for t
Slide 4: 9M 2023 gas demand and flows
9M 2023 gas demand and flows Italian gas demand 9M 2023 Gas flows 9M 2023 Passo Gries -13.8% Tarvisio 51,582 Rovigo Adriatic LNG 44,442 Volumes from north Buildings down by 18,064 Panigaglia (100% Snam) Ca 11 bcm yoy -15.6% Livorno OLT 15,237 Piombino Industry 9,116 8,315 -8.8% LNG volumes up energy
Slide 5: Global energy transition scenarios still unclear
Global energy transition scenarios still unclear World Energy Outlook 2023 Gas Report 2023 (1) • Continued geopolitical and macroeconomic uncertainty From Shock to Fragile balancing in Global Gas Market • Coal, oil and gas peak demand by 2030 at a global level • Shortfall of Russian imports in Europ
Slide 6: Adj. EBITDA analysis
Adj. EBITDA analysis • Tariff RAB growth €m • Output based for fully depreciated Mainly Energy Efficiency assets and storage 1,862 1,706 67 Energy 23 Transition(1) • Positive one off in Q1 2022 (gas sale) • Expiry of TLC lease 1,795 Gas 1,683 energy to inspire the world Infrastructure(1) 1. In line
Slide 7: Adj. Net Income analysis
Adj. Net Income analysis €m 932 9421 New assets entering Average gross cost Lower contribution of TAG into operation of debt ca 1.9% partially offset by SeaCorridor and Desfa energy to inspire the world 7 1. Net profit Reported at €1,047m (+7.7% yoy). Adjustments are mainly related to: De Nora capit
Slide 8: International associates contribution to 9M 2023 Adjusted Net Income
International associates contribution to 9M 2023 Adjusted Net Income Yoy change in net profit contribution (€m) • Acquisition completed in Jan 2023 • Strategic route for Italy with approx. 18 bcm imported until Sept +€39 m • Sound performance supported by auction premia on LNG imports and on exports
Slide 9: Cash flow
Cash flow €m • Reversal of the positive Working Capital related to balancing activities at the end 2022 • Positive effect from settlement activity (temporary) • Absorption from energy efficiency fiscal credit 1,061 (1,368) -1,539 SeaCorridor energy to inspire the world -1,439 -1,430 • - €410m SeaCor
Slide 10: Net Debt evolution and financial structure
Net Debt evolution and financial structure Net debt evolution (€bn) Maturities profile 2.4 14.3 (bn€, amount drawn) 1 11.9 1.6 2.0 1.5 1.0 0.5 0.0 4Q 2023 2024 2025 2026 2027 24-27 AVG Bonds Banking facilities energy to inspire the world Sustainable Finance on Committed financing (bn€) Average ~80%
Slide 11: Closing remarks
Closing remarks Solid 9M results in a volatile environment FY 2023 Guidance fully confirmed energy to inspire the world Better prepared gas system to face winter 2023/2024 Sound progress and delivery on key strategic milestone; Business Plan Update in January 2024 11
Slide 12: energy to inspire the world
energy to inspire the world 12
Slide 13: energy to inspire the world
13 energy to inspire the world
Slide 14: Income Statement
Income Statement € mn 9M 2022 9M 2023 Change Change % Revenues 2,548 3,145 597 23.4% Operating expenses (842) (1,283) (441) 52.4% EBITDA ADJUSTED 1,706 1,862 156 9.1% Depreciation & amortisation (641) (691) (50) 7.8% EBIT ADJUSTED 1,065 1,171 106 10.0% Net interest income (expenses) (89) (155) (66)
Slide 15: Revenues
Revenues € mn 9M 2022 9M 2023 Change Change % Regulated revenues 2,019 2,353 334 16.5% Transport 1,617 1,874 257 15.9% Storage 379 422 43 11.3% LNG 23 57 34 147.8% Non regulated revenues(1) 79 56 (23) (29.1%) Total Gas Infrastructure Businesses revenues 2,098 2,409 311 14.8% Energy Transition Busine
Slide 16: Operating Costs
Operating Costs € mn 9M 2022 9M 2023 Change Change % Gas Infrastructure Businesses costs 415 614 199 48.0% Variable costs 106 209 103 97.2% Fixed costs 223 221 (2) (0.9%) Other costs 86 184 98 - Energy Transition Businesses costs (1) 427 669 242 56.7% TOTAL COSTS 842 1,283 441 52.4% 1. In line with
Slide 17: Balance Sheet
Balance Sheet € mn 2022 9M 2023 Change Change % Net invested capital 19,447 22,378 2,931 15.1% Fixed capital 21,562 22,497 935 4.3% Tangible fixed assets 18,222 18,619 397 2.2% Intangible fixed assets 1,321 1,378 57 4.3% Equity-accounted investments 2,313 3,000 687 29.7% Other Financial assets 175 2
Slide 18: Investments detailed by business
Investments detailed by business €mn 9M2022 9M2023 Transport(1) 689 765 Storage 114 148 LNG(2) 358 157 Energy Transition(3) 148 162 Total 1,309 1,232 1. Including corporate capex. 2. Including greenture (SSLNG and mobility) investments and Golar Tundra acquisition. 3. Including Biomethane acquisitio
Slide 19: ESG Scorecard – 9M 2023
ESG Scorecard – 9M 2023 Environment Social Governance 9M Target 9M Target 9M Target 2023 2023 2023 2023 2023 2023 1 % reduction of NG emissions vs 2015 -56.9% -48.6% % participation in Average annual customers 9 12 welfare initiative 44% 54% 17 satisfaction rate in terms of -* 8.1 % NG recovered fro
Slide 20: Gas injection details
Gas injection details Gas injection details Change Change bcm 9M 2022 9M 2023 (bcm) (%) National production 2.3 2.1 -0.2 -8.7% Pipelines 45.6 34.9 -10.7 -23.5% Gela 1.8 1.9 0.1 5.6% Mazara del Vallo 17.3 17.7 0.4 2.3% Passo Gries 6.3 5.4 -0.9 -14.3% Tarvisio 12.5 2.5 -10.0 -80.0% Gorizia 0.0 0.0 0.0
Slide 21: Disclaimer
Disclaimer Luca Oglialoro, in his position as manager responsible for the preparation of financial reports, certifies pursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and accounting information disclosures herewith set forth correspond to the company’s evidenc
Slide 22: energy to inspire the world
energy to inspire the world Detail of a cooling unit of a vaporizer. Snam regasification plant, Panigaglia, 2022. Photograph by 22 Carlo Valsecchi