BAKU, Azerbaijan, July 27. Total revenues of Italian Snam net of energy costs reached 1,889 million euros, marking a substantial increase of 294 million euros (18.4 percent) compared to the first half of 2022, Trend reports.
The energy transition business revenues saw a significant surge, rising by 245 million euros (88.8 percent), primarily attributed to the success of energy efficiency operations, especially in the residential sector.
In the gas infrastructure business, regulated revenues experienced a positive trend, increasing by 71 million euros (5.7 percent), while non-regulated revenues saw a decline of 22 million euros (33.3 percent), primarily due to a reduction in one-off effects compared to the previous year.
The increase in regulated revenues can be attributed to several factors, including a rise in revenues related to RAB (Regulatory Asset Base) growth (37 million euros) and output-based incentives granted for the continued operation of transport assets that have been fully depreciated for rate purposes and flexibility services provided to users (25 million euros). Additionally, recognition of revenues connected with an increase in regasification volumes in 2022 and the first half of 2023 contributed significantly, totaling 20 million euros.
However, these effects were partially offset by a decline in transported gas volumes (11 million euros) due to milder weather conditions compared to the same period in 2022 and the implementation of gas demand containment measures.
On the financial front, net financial expense amounted to 87 million euros, representing an increase of 36 million euros compared to the first half of 2022. The rise in expenses is mainly due to an increase in financial debt, influenced by the higher average cost of gross debt, which reached about 1.7 percent in the first half of 2023 compared to around 1 percent in the corresponding period of 2022. The increase in average debt cost is primarily a consequence of evolving interest rates during the compared periods.
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