Snam 1H 2025 presentation slides: EBITDA up 5.3%, net income rises 8.5%

Italian energy infrastructure company Snam SpA (BIT:SRG) presented its first-half 2025 consolidated results on July 30, revealing solid financial performance despite challenging market conditions. The company’s stock closed at €5.382, down 0.63% on the day, even as it reported strong operational metrics and strategic progress.

Quarterly Performance Highlights

Snam delivered robust financial results for the first half of 2025, with adjusted EBITDA reaching €1,492 million, a 5.3% increase year-over-year, while adjusted net income grew by 8.5% to €750 million. These improvements came despite ongoing energy market volatility in Europe.

"We are entering an energy addition or energy integration phase," CEO Agostino Scornajenchi noted in the earnings call, emphasizing gas’s critical role as a stabilizing energy source in the transition.

The company’s presentation highlighted a 6% increase in Italian gas demand during the period, with particularly strong growth in the thermoelectric sector (+12%). Buildings and industry sectors showed more modest growth at 3% and 1%, respectively.

As shown in the following chart of gas demand by sector in 1H 2025:

Strategic Initiatives & Energy Transition

Snam continues to advance its dual strategy of strengthening core gas infrastructure while investing in energy transition projects. The presentation emphasized the company’s progress on several key initiatives, including the Adriatic Line Phase 1 (35% completed) and the successful launch of FSRU Ravenna operations in May.

The company also highlighted its diversification of gas supply sources, with LNG now accounting for over 30% of gas volumes imported into Italy, enhancing energy security. This shift is evident in the evolution of gas flows, with southern routes now representing 50% of imports compared to 42% in 2021.

The following slide illustrates Snam’s key strategic achievements across various business segments:

In the energy transition space, Snam reported progress on its Ravenna Carbon Capture and Storage (CCS) project, which is showing strong technical performance. The company has also expanded its biomethane operations to 72 MW and secured a €24 million co-financing agreement for hydrogen projects.

Snam’s investment strategy increasingly aligns with sustainability frameworks, with 32% of investments now aligned with the EU Taxonomy and 61% aligned with UN Sustainable Development Goals. The company’s sustainability scorecard shows progress across multiple metrics:

Detailed Financial Analysis

Snam’s financial performance was driven by several factors, including tariff RAB increases and WACC adjustments, partially offset by higher labor costs. The company’s international associates contributed €204 million, a 30% increase year-over-year, with significant contributions from TAP (€36m), SeaCorridor (€29m), and Terega (€23m).

The following bridge chart illustrates the components contributing to EBITDA growth:

Similarly, the net income bridge shows how various factors contributed to the 8.5% increase:

The company’s net debt increased to €17,580 million from €16,238 million at the end of 2024, while maintaining a stable average cost of debt at approximately 2.5%. Sustainable finance now represents approximately 86% of committed financing.

Investments for the period totaled €1,122 million, a slight decrease of 3.1% year-over-year. The investment breakdown shows a strong focus on development (53%) and maintenance (24%), with the remainder allocated to replacements, digitalization, and other initiatives.

Forward-Looking Statements

For the full year 2025, Snam has set an EBITDA guidance of €2.85 billion and a net income guidance of €1.35 billion, with expectations to potentially exceed these targets based on first-half performance.

The company continues to emphasize its critical role in the European energy system, particularly as gas remains a significant component (35%) of Italy’s primary energy mix. Snam’s strategic positioning focuses on enhancing supply diversification while supporting the energy transition through investments in biomethane, hydrogen, and carbon capture technologies.

S&P’s recent upgrade of Snam to an "A-" credit rating reflects confidence in the company’s financial stability and strategic direction. The company aims for carbon neutrality for Scope 1 and 2 emissions by 2040 and net zero across all scopes by 2050, with current emissions already down 20% compared to 2022 levels.

As energy markets continue to evolve, Snam appears well-positioned to leverage its existing infrastructure while gradually transitioning toward more sustainable energy solutions, though regulatory changes and fluctuations in global gas demand remain key challenges for the company’s long-term strategy.

Full presentation:

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