Realistic and ambitious. This is how the new can be defined industrial plan to 2026 presented by Snam. With one eye focused on the short term to continue managing the gas emergency after the cut in Russian supplies and with the other focused on the medium-long term in order to strengthen the strategic assets for the country's energy security.
In the 2022-2026 strategic plan, the company led by Stefano Venier expects total investments to grow by 23% to 10 billion euros, mainly linked to the commissioning of two regasifiers purchased floats, the construction of the Adriatic Line, and the renewal and development of gas storage. The company then confirmed its "commitment on the path of reducing emissions towards carbon neutrality to 2040".
Venier (ad Snam): "One billion for hydrogen and biomethane"
“2022 was a turning point for the global energy system” – said Stefano Venier, CEO of Snam. “In a scenario of extreme uncertainty and volatility, Snam was able to guarantee maximum support to deal with the emergency, building the conditions for the actions necessary to manage the near future. Over the period of the 2022-2026 plan we will increase investments significantly compared to the past, in order to strengthen our infrastructures and contribute to the country's greater energy security for the next few years and for the longer term".
But not only. At the same time, the company will continue to work “for a carbon neutral future, focusing on green molecules: hydrogen e biomethane they will accompany our journey towards carbon neutrality as well as the initiatives for the decarbonisation of final consumption, and we have allocated one billion euros to them by 2026″, continued the CEO. "Over the same time horizon, despite a still unstable scenario, we expect significant growth in the main economic indicators which can be achieved without affecting our financial solidity with the aim of building a more sustainable, resilient and long-lasting energy system", concluded Venier.
Plan target at 2026
The regulated activity (Rab) is expected to grow by over 5% on average per year, against the previous +2,5% and Mol by around 7%, compared to the previous +4,5% due to the investments in the period, the regulatory components and the contribution of the energy transition businesses. All of these factors will contribute to the growth ofEbitda expected to be around €2,85 billion by 2026, of which around €140 million will be linked to energy transition businesses. Finally, the Group plans a Net income up by about 3% on average per year “despite the increase in interest rates”, he explains in a note.
Dividend policy confirmed and extended by one year
In the plan to 2026, Snam extends the minimum growth of 2,5% of dividend, with confirmation of +5% per share in 2022. Snam, in detail, expects that for the 2022 financial year, a total dividend of €2023 per share may be distributed in 0,2751, of which 40% as an advance with payment on 25 January 2023 (record date 24 January 2023), with ex-dividend date of the coupon on 23 January 2023, as resolved by the Board of Directors on 9 November 2022 while the remaining 60% in balance with payment on 21 June 2023 (record date June 20, 2023) with date of coupon detachment on 19 June 2023, to be submitted to the Shareholders' Meeting which will approve the 2022 financial statements.
Snam 2022-2026 business plan: investments of 10 billion
Acceleration on investments for security and transition for a good 10 billion euros. Of these, 9 billion are earmarked for gas infrastructure. In particular: 6,3 billion on transport (5,4 billion in the previous plan), including investments relating to the upgrading of the Adriatic Line and the application of the new methodology for assessing the state of health of assets for network replacements; 1,3 billion for the expansion and renewal of storage sites (1,2 billion in the previous plan); 1,4 billion for liquefied natural gas, with a significant increase attributable to the purchase of the two floating regasification terminals and related infrastructure investments.
Investments in energy transition businesses amount to 1 billion. Among the green gases, biomethane is the one at the most advanced stage of development and available in a short time. Investments in biomethane in the 2022-2026 plan amount to approximately 550 million and foresee over 100 MW of plants in operation by 2026 (with an expected production of approximately 200 million cubic metres).
Vision to 2030
"Snam is well positioned to be among the leading companies in the transformation taking place in the energy sector and will be able to seize important development opportunities over the next decade", explains a note from the group.
It is expected that there will be over 20 billion euros of investment opportunities in the 2022-2030 period for:
• the continuation of development, maintenance, modernization, decarbonisation and digitization activities of our infrastructures;
• the completion of Adriatic line and the development of new storage capacity (+15% with Alfonsine);
• the development of the “Italian Hydrogen Backbone” through the repurposing of the infrastructure (networks and storage) to support the national demand for green gas and export the additional volumes available from national and/or import production.
