BAKU, Azerbaijan, July 30
By Leman Zeynalova – Trend:
Italy-based Snam company’s technical investments in the first half of 2021 amounted to 566 million euros, an increase of 109 million euros (+23.9 percent) compared with a slowdown recorded in the first half of 2020 due to the Covid-19 pandemic, Trend reports with reference to the company.
Investments relate mainly to natural gas transportation (458 million euros; 388 million euros in the first half of 2020) and storage (68 million euros; 43 million euros in the first half of 2020) segments. Notwithstanding the continuing uncertainty regarding the evolution of the pandemic, with reference to the regulated core business, the level of the investment plan announced for 2021 is confirmed.
The positive net Cash Flow from operating activities (566 million euros) was impacted by the temporary cash absorption generated by the gas balancing activity as a result of higher gas purchases in April and May following the colder weather conditions recorded in the period. This cash flow allowed the financing of part of the technical investments for the period (net of payables for investments) for a total of 594 million euros. Further to disbursements related to equity investments and repayments of financial receivables from OLT, free cash flow stood 467 million euros negative. Net financial debt, after nonmonetary changes and after payment to shareholders of the 2020 dividend (795 million euros1), stood at 14,148 million euros, an increase of 1,256 million euros compared to 31st December 2020.
Net Income from equity investments amounted to 139 million euros, up by 29 million euros (+26.4 percent) compared with the first half of 2020, mainly as a result of the positive contribution from foreign associate companies, particularly TAP (+33 million euros) in operation as from 15th November 2020, and the ADNOC Gas Pipelines (+13 million euros) which became part of the Group’s perimeter from July 2020, as well as from Industrie De Nora (+7 million euros), a transaction completed in January 2021. These effects were partly offset by the lower contribution of TAG (-10 million euros), which benefited in the first half of 2020 from non-recurring items, and DESFA (-10 million euros), mainly as a result of the expected reduction in the WACC from 7.84 percent to 7.52 percent.
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