energy to inspire the world
2022 1H
Consolidated results
Milan, July 27th, 2022
Snam to play a key role in the new energy context
energy to inspire the world
Energy
affordability
Increased
requirement for green and decarb gas
Accelerated renewables targets
Security of supply has moved higher up the agenda
New
investments and services required for resilience
Potential for new interconnections in Europe
- Unparalleled execution capabilities
- Diversified asset portfolio, well- positioned in Italy and Europe
- Leader in decarbonized and green gas
- Strong balance sheet and disciplined investment approach
2
Internal
H1 results: key highlights
energy to inspire the world
SCENARIO
Energy crisis
- EU Commission introduced a minimum 80% gas storage level obligation by 1st of Nov, rising to 90% for the following years. Italy committed to 90% storage level for this thermal year
- RePower EU envisages natural gas infrastructure investments for integrating the European market
Gas market
- H1 2022 gas demand at 39.2 bcm (-1.9% YoY*) and strong export volumes (ca 1.8bcm)
- High gas prices (PSV ytd ca 110€/MWh or >2.2x 2021 avg)
Macro
- Q1 2022 RAB deflator at 3.2%
- Supportive WACC mark to market
* Non weather adjusted
SNAM KEY DEVELOPMENTS
- Acquisition of 2 FRSUs completed in a highly competitive market
-
Storage operator of last resort: ca 2 bcm of gas stored from April to date contributing to the system infilling ahead of winter
(storage 71% full) - De Nora IPO successfully completed, value of Snam stake almost doubled since acquisition
- MoU with Edison on SSLNG
- 1 new plants added to our biomethane portfolio (Genova 2MW entered in the perimeter in July)
KEY FIGURES
- Adj. net profit up 1.7% YoY despite WACC revision thanks to solid operating performance, growing contribution from new businesses and higher associates
- Net debt at €12.8bn impacted by temporary system balancing related positive working capital effect
- Funding for the year already secured
- Sustainable finance at ca 70% of total
- Group capex of €537m (-5%vs LY). Delays to be recovered by YE
3
Internal
Supply security: two new FSRUs for Italy
Golar Tundra
Key Highlights
- Capacity: 5bcm
- Purchase cost: €329m
- Year of built: 2015
- In operations as FSRU from: 2H2023
- Location: Piombino (on-shore for the first 3Y)
energy to inspire the world
Internal
The FSRUs will operate
under a regulated
regime which provides visibility on the return while increasing RAB growth profile
-
Acquisition costs fully recognized in
RAB - LNG regulatory framework: 6.1% WACC and 64% guarantee factor
- Annual contribution set by the so called "Decreto Aiuti" of overall €30 million per year for the two FSRUs implying a minimum guaranteed of ca 85-90%
- These assets will contribute 13% of the national gas demand, bringing regasification capacity to over 30% of demand and reducing by 1/3 the dependence from Russia
BW Singapore
Key Highlights
- Capacity: 5bcm
- Purchase cost: $ 400m
- Year of built: 2015
- In operations as FSRU from: 3Q2024
- Location: Upper Adriatic Sea, to intercept potential new LNG flows from North Africa and the Eastern Mediterranean
4
Supply security: gas storage infilling
Snam contributing ca | Snam contribution as | |||||||||||||||||||
0.8bcm in April | last resort operator | |||||||||||||||||||
(store of own gas needs) | ca 1.2 bcm | |||||||||||||||||||
(ongoing) | ||||||||||||||||||||
12.000 | ITALIAN STORAGE | 120,0 | ||||||||||||||||||
11.000 | 110,0 | |||||||||||||||||||
71% FULL | ||||||||||||||||||||
(MSmc*) | 10.000 | 100,0 | ||||||||||||||||||
9.000 | 90,0 | |||||||||||||||||||
8.000 | 80,0 | |||||||||||||||||||
level | 7.000 | 70,0 | ||||||||||||||||||
worldthe | 6.000 | 60,0 | ||||||||||||||||||
Storage | 5.000 | 50,0 | ||||||||||||||||||
4.000 | 40,0 | |||||||||||||||||||
inspire | 3.000 | 30,0 | ||||||||||||||||||
2.000 | 20,0 | |||||||||||||||||||
1.000 | 10,0 | |||||||||||||||||||
to | 0 | 0,0 | ||||||||||||||||||
01/04 | 16/04 | 01/05 | 16/05 | 31/05 | 15/06 | 30/06 | 15/07 | 30/07 | 14/08 | 29/08 | 13/09 | 28/09 | 13/10 | 28/10 | ||||||
energy | ||||||||||||||||||||
Storage level 2021 | Storage level 2022 | Daily volumes 2021 | Daily volumes 2022 | Snam contribution | ||||||||||||||||
Daily volumes (MSmc/g *)
Internal
No working capital absorption, no volume/price exposure for Snam
* @PCS=10,57275 kWh/Smc
5
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SNAM S.p.A. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 13:03:09 UTC.