This article first appeared on GuruFocus .
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Gas demand in Italy increased by 2% compared to the previous year, driven by colder weather and stable industrial demand.
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Exports rose significantly, growing roughly 5 times compared to the previous year, enhancing Italy's role as a strategic energy gateway for Europe.
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Adjusted EBITDA increased by 6.6% year on year, driven by growth in regulatory revenues.
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Net debt decreased by 1% versus the first half of 2025, showing effective financial management.
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The company successfully issued its first US dollar multi-tranche sustainability-linked bond totaling $2 billion, enhancing its sustainable finance profile.
Negative Points
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Pipeline imports decreased by 2.8 billion cubic meters, indicating a reliance on LNG imports.
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Higher depreciation and financial charges partially offset the increase in adjusted net income.
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The average cost of debt remained stable at 2.6%, which may limit financial flexibility.
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The foreign direct investment clearance for the OG acquisition in Germany is still ongoing, creating uncertainty.
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The company faces regulatory challenges, such as the need for legislative approval for carbon capture and storage and hydrogen projects.
Q & A Highlights
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Q: Can you elaborate on the draft law on CCS and hydrogen and its implications for Snam's business model? A: The draft law, proposed on June 30th, is awaiting parliamentary approval. It will empower the regulator to oversee CCS and hydrogen, which are not currently regulated. This is crucial for finalizing investment decisions in these areas. Technical specifications for CCS were issued last week, moving us closer to making an FID on the industrial phase by early 2027. (Unidentified_3)
Q: What is the status of the potential acquisition in Germany with OGE, and what is the deadline for a decision? A: We are in phase two of the FTI procedures, which started at the end of April. The long-stop date for the contract is November 17th. We expect to have a decision by then, which will determine if we can finalize the acquisition. (Unidentified_3)
Q: Can you provide details on the 1.4 billion energy transition backlog? A: The backlog consists of 10% residential, 45% public administration, and 45% large industrial customers. This shift reflects a focus on public administration and industrial projects, moving away from residential projects linked to the super bonus tax allowances. (Unidentified_3)
Q: What are the next steps for CCS, and what is the potential investment opportunity? A: The draft law needs parliamentary approval, expected by year-end, to allow the regulator to draft regulations. We anticipate CCS to be a regulated business, contributing to our asset base. Our business plan includes 500 million in CapEx for CCS, with potential investments reaching 800 million for transport and 1 billion for storage. (Unidentified_3)
Q: Can you clarify the guidance for associates' contribution and the impact of the EBITDA guidance increase on 2026? A: The full-year contribution from associates is expected to be 365 million, excluding any from OGE. The EBITDA guidance increase includes a 40 million contribution from the new indexation, which will also impact 2026. (Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
