BAKU, Azerbaijan, May 7
By Leman Zeynalova – Trend:
Total revenue of Italy’s Snam company amounted to €691 million, up €52 million or 8.1 percent compared with the first quarter of 2019, Trend reports citing the company.
Regulated revenue increased by €41 million, or 6.7 percent, specifically thanks to the transportation segment as a result of tariff updating mechanisms.
This increase was also a result of the introduction, for the fifth regulatory period in force from 1 January 2020, of a variable tariff component to cover energy costs (costs for the purchase of fuel gas, previously transferred in kind by the shippers), which was substantially offset in operating costs.
The increase in revenue was also driven by higher revenue from non-regulated activities (+€11 million or +45.8 percent), resulting from the initial contribution of businesses relating to the energy transition that entered the scope of consolidation at the end of 2019 and from the development of Snam Global Solutions’ operations.
Net financial expense stood at €35 million, down €7 million or 16.7 percent compared with the first quarter of 2019 thanks to the continuous commitment to optimising the group’s financial structure and treasury management activities implemented by Snam, despite the higher average debt for the period.
Net income from equity investments amounted to €52 million, a fall of €10 million or 16.1 percent compared with the first quarter of 2019, following the lower contribution of the subsidiary Teréga, which in the first quarter of 2019 benefited from non-recurring income, from Interconnector UK, which had lower capacity commitments in the quarter compared to the same period last year, as well as a lower contribution from Italgas.
Net profit stood at €298 million, an increase of €15 million or 5.3% compared with the first quarter of 2019 following the positive operating performance and reduction in net financial expense. Pre-tax profit increased by €11 million (+2.8 percent).
---
Follow the author on Twitter: @Lyaman_Zeyn