Snam (SRG) Q4 2024 earnings summary

Executive summary

• Achieved double-digit growth in EBITDA and net profit over the past two years, supported by record investments, strategic M&A, and a focus on pan-European multi-molecule infrastructure expansion.

• Advanced decarbonization and energy transition initiatives, with significant progress in hydrogen, biomethane, CCS, and sustainability leadership.

• Maintained attractive shareholder remuneration and financial flexibility, with a proposed 2024 dividend of €0.2905 per share.

• Surpassed guidance, driven by progress in gas infrastructure, innovation, and security of supply.

• Maintained a €12.4 billion investment plan through 2029, focusing on security of supply and innovation.

Financial highlights

• 2024 adjusted EBITDA reached €2,753 million (+13.9% year-on-year); adjusted net income was €1,289 million (+10.4%), both above guidance.

• Investments totaled €2.9 billion, up 31% year-on-year; net debt at €16.238 billion, below guidance.

• Tariff RAB increased to €23.7 billion, up 5.8% from 2023.

• Total revenues were €3,568 million, down 9.5% year-on-year, mainly due to lower energy transition business revenues.

• Adjusted EBITDA margin improved to 77.2%; operating expenses fell 46.5% to €815 million.

Outlook and guidance

• 2025 guidance: investments of €2.9 billion, tariff RAB of €25.8 billion (+9%), adjusted EBITDA of €2.85 billion, adjusted net profit of €1.35 billion, and net debt of €18.4 billion.

• Dividend per share expected at €0.2905 (+4% year-on-year), with a policy targeting 4% annual growth and up to 80% payout.

• Focus on strengthening gas infrastructure, expanding storage, and developing energy transition businesses.