By Andrea Figueras

Snam on Thursday reported higher first-half net profit and revenue, and confirmed its guidance for the full year.

The Italian gas grid operator posted net profit of 698 million euros ($773.8 million) compared with EUR686 million in the year-earlier period, on revenue that stood at EUR2.09 billion, up from EUR1.68 billion. Operating income rose to EUR758 million from EUR707 million.

Snam's 2023 performance is likely to be hit by higher interest rates and a slowdown in natural gas demand in Italy due to milder weather conditions, demand containment measures and the decline in thermal generation, which reflects an increase in electricity imports and hydroelectric generation, the company said.

Snam confirmed its full-year guidance and sees adjusted net profit around EUR1.1 billion. It also aims to invest EUR2.1 billion, 10% more than in 2022.

For the second half, it expects a further decrease in gas flows from Russia to Europe from the decline already seen in 2022, Snam said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 27, 2023 10:20 ET (14:20 GMT)

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