BAKU, Azerbaijan, November 8. Snam has reported a 5.7% increase in its adjusted net profit for the first nine months of 2024, reaching 996 million euros, up by 54 million euros compared to the same period in 2023, Trend reports.
The positive results were driven by growth in EBIT, though this was partially offset by higher net financial expenses, a reduced contribution from international associates, and an increase in income tax rates due to higher profits. Additionally, the abolition of the fiscal ACE (Aid to Economic Growth) benefit as of 2024 impacted the overall result.
The company’s operational cash flow stood at 1.25 billion euros, with working capital dynamics affecting cash flow to the tune of a 419 million euros decrease, mainly due to balancing activities. Despite this, Snam was able to partially finance its net investments for the period, which amounted to 1.85 billion euros, including changes in investment payables. This resulted in a negative free cash flow of 601 million euros.
Snam also reported a rise in its net financial debt, which increased by 664 million euros compared to December 2023, bringing the total to 15.93 billion euros. This increase was largely attributed to the 938 million euros cash outflow related to the 2023 dividend payout to shareholders and non-monetary variations. However, the increase in debt was partially mitigated by the release of the first perpetual subordinated hybrid instrument, which generated 989 million euros in funds.
Overall, despite challenges including higher financial costs and regulatory changes, Snam continues to demonstrate resilience, supported by its operational cash flow and ongoing investments in infrastructure.