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Snam records significant uptick in 2023 revenues

Economy Materials 15 March 2024 12:55 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, March 15. Snam's total revenues, after deducting energy costs, reached 3.875 billion euros, marking an increase of 558 million euros (16.8 percent) year-on-year, Trend reports.

According to the company's latest financial report, revenues from energy transition initiatives surged by 410 million euros (a 59-percent rise), driven mainly by the expansion of energy-efficient projects, particularly in residential areas.

Meanwhile, the gas infrastructure sector experienced a boost in regulated revenues, climbing by 170 million euros (a 6.7-percent increase), alongside a decrease in non-regulated revenues by 22 million euros (a 21.8-percent decline). This drop primarily reflects a reduction in one-time positive effects compared to 2022.

As Snam explains, the surge in regulated revenues can be attributed primarily to an uptick in revenues linked to RAB growth, totaling +78 million euros, which includes the impact of reduced input-based incentives; output-based incentives granted for the ongoing operation of fully depreciated transport assets and the provision of flexibility services to users, amounting to +85 million euros, which incorporates incentives tied to increased utilization by storage service users of flexibility services offered during short-term auctions in the 2022-2023 thermal year.

The acknowledgment of revenues associated with a rise in regasification volumes in 2022 compared to those determined by the regulatory authority for that year, totaling +12 million euros, and revenues related to the commencement of operations at the Piombino terminal, contributing an additional +21 million euros also contributed to the rise.

However, as the company noted, these effects were counterbalanced by a decrease in transported gas volumes, amounting to -21 million euros, due to notably milder weather conditions overall compared to 2022 and the enforcement of gas demand restriction measures.

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