BAKU, Azerbaijan, November 7. Snam has reported a decline in total revenues for the first nine months of 2024, amounting to 2.65 billion euros, a decrease of 212 million euros or 7.4% compared to the same period last year, Trend reports.
The decrease was primarily driven by a significant drop in revenues from energy transition businesses, which saw a 70% decline, the producer explained.
While the overall revenue figure showed a downward trend, the gas infrastructure business displayed a strong countertrend, recording a 14.2% increase in revenues, up 303 million euros. This was largely driven by higher regulated revenues, which rose by 327 million euros (15.8%), bolstered by a combination of factors including a higher Weighted Average Cost of Capital (WACC) across all business segments and revenue growth from the Regulated Asset Base (RAB) in transportation and storage.
The regulated revenues increase was further supported by the impact of the Regulation by Objectives of Expenditure and Service (ROSS) on the gas transportation business and the commencement of operations at the Piombino regasification terminal in July 2023. The terminal’s operations contributed an additional 48 million euros to revenues, alongside a 29 million euro boost from higher regasified volumes in 2023.
However, these positive outcomes were offset by a steep revenue decline in energy transition businesses, where revenues dropped by 515 million euros, a 70% fall compared to the previous year. This decline was attributed to the reduced contribution from energy efficiency projects following the termination of the Superbonus incentives.
Additionally, Snam faced challenges in the storage and transportation sectors. The storage business saw a reduction of 32 million euros due to lower demand for flexibility services in short-term auctions, while transportation revenues were negatively impacted by lower incentives, down 8 million euros due to default service adjustments.