Italian gas grid operator Snam confirmed on Thursday its guidance for full-year net profit after reporting a rise of 10% in nine-month revenue to 2.4 billion euros ($2.41 billion).
The state-controlled group said it planned to boost Italy's gas storage and transport facilities after getting the go-ahead to set up two new LNG terminals. The new floating LNG terminals and investments in gas infrastructure are part of a broader effort by the Italian government to replace dwindling Russian gas supplies and keep a lid on energy costs.
The gas grid operator reported a decline of 9% in gas consumption by the industrial sector between January and September, in a sign that companies in Italy have cut activity in the face of high commodity prices and supply difficulties. Total gas demand in the first nine months of 2022, equal to 51.7 billion cubic meters, was down 3% from the corresponding period last year.
Snam reported an adjusted net profit of 932 million euros between January and September, nearly flat year-on-year as the good performance of its associates compensated for a lower rate of return on investments in regulated infrastructure.
Net profit for this year is still projected to be at least 1.13 billion euros, the group said. "With the receipt of authorisation to begin operation of our regasification vessels, we take the first step in the remodelling of our national energy security," said Chief Executive Stefano Venier.
The move will soon have to be accompanied by the expansion of transport and storage infrastructure, he added. Venier said the group aimed to play a key role in Italy's acceleration of the energy transition.
Snam, which manages Italy's gas grid as well as the bulk of its gas storage, recently won approval to set up a floating storage and regasification unit (FSRU) in the Tuscan port of Piombino in the spring, and to build a second FSRU offshore Ravenna in 2024.
By Thursday, gas storage had been filled to 95.2% of total capacity, exceeding a target of at least 90%, Snam said. ($1=0.9979 euros)
(Reporting by Francesca Landini; Editing by Jane Merriman and Clarence Fernandez)
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