BAKU, Azerbaijan, March 11. Fitch Ratings expects Snam S.p.A.'s net debt to increase to €21 billion by 2028, up from an estimated €15.5 billion in 2024, reflecting higher capital expenditures and dividend payouts, Trend reports.
The debt projection factors in the impact of the Ecobonus scheme and includes Snam’s €1 billion hybrid bonds issued in 2024, to which Fitch assigns 50% equity credit.
Despite the rising debt, Snam’s financial metrics remain within rating tolerances. Fitch forecasts FFO net leverage to average 6.8x from 2025 to 2028, peaking at 6.9x in 2027-2028, well below the negative rating sensitivity threshold of 7.3x. Additionally, net debt to (RAB + associates) is expected to average 59%, comfortably within the guidelines for a ‘BBB+’ rating.
Snam’s portfolio of gas-related stakes in Italy and abroad is expected to provide a higher dividend contribution than previously forecast, with an average of €224 million per year from 2025 to 2028.
The recovery of Trans Austria Gasleitung GmbH following a favorable Austrian regulatory review is a key factor in the improved dividend outlook.
Higher contributions from the Trans Adriatic Pipeline (TAP) are expected to boost earnings.
No regulatory reviews in France during this period will further support stable returns.
Fitch’s projections include the divestment of a minority stake in ADNOC Gas Pipelines in 2025, expected to generate €250 million.
Looking beyond 2028, Snam plans to invest up to €14.7 billion (net of grants) from 2030 to 2034, with a strong focus on energy transition:
- 39% of investments will be allocated to emission reduction and green molecule projects.
- 34% will be dedicated to hydrogen-ready gas infrastructure.
- Investments in carbon capture and storage (CCS) and hydrogen projects will depend on the establishment of a clear regulatory
- Framework, according to Fitch’s discussions with Snam’s management.