By Francesca Landini
MILAN (Reuters) – Italy’s gas grid group Snam, which recently acquired a stake in Germany’s fuel operator Open Grid Europe, reported on an 8% annual rise in its first-quarter adjusted core profit on Thursday.
Adjusted earnings before interest, taxes, depreciation and amortisation came in at 761 million euros ($859 million) in the period, in line with an average estimate of 756 million euros in a Reuters poll of analysts.
Net income excluding one-off items was up 21% to 406 million euros thanks to a positive contribution from the group’s associates.
Snam – which derives the bulk of its profits from regulated activities including gas, LNG transport and storage management – said it completed the set up of a new floating liquefied natural gas (LNG) terminal in the Adriatic Sea, which will start commercial operations this month.
The new floating regasification unit is part of a broader strategy to boost Italy’s energy security that Snam has carried out under the mandate of the Italian government.
Snam said that 90% of Italy’s gas storage capacity offered for the 2025-2026 year was allocated in April.
“This bodes well for reaching a 90% filling target (set by the European authorities) before the start of the winter,” it added.
The group said its board approved the possibility to issue hybrid bonds for up to 1 billion euros by the end of next year to fund recent acquisitions, including Open Grid Europe.
It confirmed its guidance for the year.
Snam shareholders are expected on May 12 to vote in favour of Agostino Scornajenchi, a former top manager at power grid company Terna, who was picked by the Italian government to succeed CEO Stefano Venier.
Venier was appointed when the previous government led by Prime Minister Mario Draghi was still in power.
($1 = 0.8859 euros)
(Reporting by Francesca Landini, editing by Gavin Jones and Elaine Hardcastle)
