News

By Francesca Landini

MILAN, March 14 (Reuters) - Italian gas grid operator Snam SRG.MI said on Thursday its core earnings rose 8% last year, driven by its gas transportation and energy transition businesses.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 2.4 billion euros ($2.6 billion) in 2023.

The state-controlled group will ask shareholders to approve a programme to buy back 3.27% of its share capital at an investor meeting in May, spending up to 500 million euros in a transaction also aimed at improving shareholder returns.

The dividend will rise by 2.5% to 0.2820 euros per share.

At the end of December, net debt was 15.2 billion euros, up from 12 billion euros the end of 2022, but below its guidance of 15.5 billion euros, it said in a statement.

Investments in 2023 rose nearly 14% to 2.2 billion euros and included 331 million euros to buy a new liquefied natural gas (LNG) terminal, that will be placed in the Adriatic Sea, and 410 million euros to acquire a stake in the gas infrastructure SeaCorridor.

The company is also in exclusive talks to buy energy group Edison's EDNn.MI business.

Snam said it was ready to start work to build a new pipeline to bring fuel from the south to the north of Italy to create a network that could eventually transport green hydrogen as the country decarbonises its economy.

Gas demand in Italy last year dropped 10% to 62 billion cubic metres last year, mainly reflecting lower use of gas to produce electricity.

($1 = 0.9144 euros)

(Reporting by Francesca Landini, editing by Alvise Armellini and Sharon Singleton)

((francesca.landini@thomsonreuters.com; +39 02 66129437; Reuters Messaging: reutersitaly.thomsonreuters@reuters.net))

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