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Italian energy infrastructure company Snam SpA (BIT:SRG) reported strong financial results for the first quarter of 2025, with significant growth in both adjusted EBITDA and net income, according to the company’s presentation released on May 8.
The company’s stock closed at €5.062 on the day of the announcement, up 1.15%, reflecting positive market reception to the results.
Quarterly Performance Highlights
Snam delivered robust financial performance in Q1 2025, with adjusted EBITDA reaching €761 million, an 8.3% increase compared to the same period last year. This growth was primarily driven by positive contributions from regulation, regulated revenues, and the Stogit Adriatica business.
As shown in the following chart breaking down the EBITDA growth factors:
Adjusted net income rose even more impressively, climbing 21.2% year-over-year to €406 million. This substantial increase resulted from stronger EBITDA performance, improved net financial results, and a significant 42.7% increase in contributions from associates, which reached €107 million.
The following waterfall chart illustrates the key drivers behind the net income growth:
Despite these strong results, total investments decreased by 22% year-over-year to €361 million, reflecting a more focused capital allocation strategy. The company maintained a solid financial position with net debt of €16.798 billion and an average cost of debt at approximately 2.5%.
Strategic Initiatives & Acquisitions
Snam made significant progress on its strategic initiatives during the quarter, completing several important transactions. In March 2025, the company closed the acquisition of Edison Storage, enhancing its energy storage capabilities. Additionally, Snam signed a binding agreement in April to acquire a 24.99% stake in Vier Gas Holding, which indirectly owns Open Grid Europe (OGE), a major German gas transmission system operator.
The company also successfully executed its asset rotation strategy, completing the sale of its ADNOC stake to Lunate in March 2025 for €234 million. This transaction generated an impressive 14.5% internal rate of return and approximately €120 million in capital gains net of taxes.
Snam’s Board of Directors approved the issuance of up to €1 billion in hybrid instruments to finance the OGE acquisition, demonstrating the company’s commitment to expanding its European footprint while maintaining financial discipline.
Energy Market Trends
The first quarter of 2025 saw a significant recovery in European gas demand, which increased by 8% primarily due to growth in Italy and Germany. Italian gas demand specifically rose by approximately 10%, driven by a 22% increase in the thermoelectric sector and a 5% increase in the civil sector.
The following chart details the breakdown of Italian gas demand and flows:
Snam achieved several operational milestones during the quarter, including the successful commissioning of the FSRU Ravenna floating storage and regasification unit, with commercial operations set to begin in May. The company noted that approximately 60 LNG tankers had delivered to Italy year-to-date, representing about 30% of gas volumes imported into the country.
Storage levels stood at approximately 47% at the end of April, with 90% of storage capacity offered for the 2025/26 thermal year already allocated, highlighting strong market demand for Snam’s storage services.
Sustainability & Investment Alignment
Snam continued to advance its sustainability agenda, with 28% of its capital expenditure aligned with the EU Taxonomy and 52% aligned with the UN Sustainable Development Goals (SDGs) as of Q1 2025. The company published a new Sustainable Finance Framework in April and maintained its sustainable finance ratio at approximately 85%.
The following chart illustrates Snam’s investment breakdown and alignment with sustainability frameworks:
The company’s comprehensive sustainability scorecard demonstrates its commitment to measurable progress across environmental, social, and governance dimensions:
In the energy transition space, Snam reported a backlog of approximately €1.4 billion in energy efficiency projects as of March. Its biomethane business continued to expand, with 14 plants (approximately 30 MW) winning the January tariff auction. The company now has 72 MW of biomethane capacity either in operation, authorized, or under construction, representing 92% of its 2028 target.
Forward-Looking Statements
Snam’s presentation indicated that the company is "comfortably on track" to deliver on its full-year 2025 guidance. The company highlighted its sound financial flexibility and accelerating progress on its 2025-29 strategic plan.
The company’s income statement shows the strong financial trajectory, with revenues increasing 8.3% to €970 million in Q1 2025:
Snam’s strategic positioning as a pan-European multi-molecule infrastructure company appears well-aligned with the ongoing energy transition and security of supply concerns across Europe. With its credit rating recently upgraded by S&P to "A-" following the sovereign upgrade, the company is well-positioned to continue executing its growth and sustainability strategy.
The combination of strong financial performance, strategic acquisitions, and progress on sustainability initiatives suggests Snam is effectively balancing short-term operational excellence with long-term strategic positioning in the evolving European energy landscape.
Full presentation:
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