Snam S.p.A. (OTCPK:SNMRF) Q3 2022 Earnings Conference Call November 10, 2022 8:30 AM ET
Company Participants
Stefano Venier - Chief Executive Officer
Conference Call Participants
Javier Suarez - Mediobanca
Jose Ruiz - Barclays
Stefano Gamberini - Equita
Emanuele Oggioni - Kepler Cheuvreux
James Brand - Deutsche Bank
Bartlomiej Kubicki - SocGen
Operator
Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Snam 9 Months 2022 Consolidated Results Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Stefano Venier, CEO of Snam. Please go ahead, sir.
Stefano Venier
Ladies and gentlemen, good afternoon and welcome to Snam 9 months results presentation. Page 1, gas prices, volatility continued with peaks during August, September, followed by a sharp decline from October on the back of mild winter – mild weather, sorry, the end of EU storage infilling campaign and recession fears. Italian demand was down 3% in 9 months, driven by decline of residential demand by minus 5%, due to mild weather and a drop by 9% in industrial demand due to high prices, while thermoelectric sector was up 3% as effect of low hydro production.
Exports to Northern Europe continued reaching 2.7 bcm, confirming Italy’s role as a transport hub. Q3 demand was down by 7% year-on-year, mainly as an effect of industrial demand decline acceleration. This trend was even stronger in October with overall demand down by 20%, also due to mild weather. We have to consider that, not all of this shortfall in demand was – let’s say, in connection to reduction of production because many of these industrial users switched to other kind of fuels, to substitute the gas, due to the cost of this fuel. In 9 months, we experienced an unprecedented swing in gas flows. Volumes from North means, Tarvisio and Passo Gries were down 18% year-on-year, while import from Southern
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