MILAN (Reuters) – The Italian gas group Snam aims to become carbon neutral by 2040 and will increase spending on preparing its grid for hydrogen and the transition to cleaner energy sources.
Europe’s biggest gas pipeline company said Wednesday that it would invest 7.4 billion euros through 2024, half of which would prepare its infrastructure to receive hydrogen.
It said the net zero-carbon target does not include emissions beyond its control, but works with suppliers to address the so-called Scope 3 emissions that are generated by the provision and use of its products.
He said his party aimed to reduce direct and indirect carbon emissions by 50% by 2030 from the previous target of 40%.
“Snam will be one of the first energy companies to achieve carbon neutrality by 2040 and make a broad contribution to system decarbonization through developing green gases and, in particular, hydrogen,” said Snam CEO Marco Alvera.
The company, which is also interested in getting involved in the water sector, said it aspires to fully transport decarbonized gas on its network by 2050 to make Italy a European hydrogen hub.
Snam, which derives most of its revenue from gas transportation in Italy, wants to expand the use of hydrogen in pipelines and has achieved a 10% hydrogen mix in a pilot study.
Net profit in the 2020-2024 period is expected to grow 2.5% per year while core income will increase by an average of 3.3%, the company said, emphasizing dividend growth of 5% per year until 2022.
Reporting by Stephen Jewkes; editing by Agnieszka Flak and Barbara Lewis
ROME, November 20 (Reuters) – Uncertainty sparked by a second wave of COVID-19 calls for caution in debate among European watchdogs over whether to extend recommendations that eurozone banks refrain from paying dividends, the Bank of Italy told Friday.
Banks in the UK and eurozone were prevented from distributing 2019 profits to shareholders during the first wave of the virus. The supervisor urged banks to safeguard capital in the face of emergencies, in return for loosening regulations and flooding the system with funds loaned at negative interest rates.
The recommendations have been extended to the end of the year and the bank expects the European Central Bank to give an indication of how long the ban will last.
The decision is particularly important for low-value European banks and their shareholders in a phase of revenue compression and cloudy credit quality prospects.
Speaking at a press conference to present the Bank of Italy’s biannual Financial Stability Report, Deputy Governor Luigi Federico Signorini said supervisors were still discussing the matter and no indication could be given of the final outcome.
However, he called for caution.
“We are currently going through a strong second wave of contagion across Europe. We hope it will be lighter than the first, but the uncertainty is high, ”said Signorini.
“This is why at the Bank of Italy we think it is necessary to be very careful and consider the macroeconomic outlook carefully,” he added. (Reporting by Stefano Bernabei; written by Andrea Mandala; editing by Valentina Za)
ZURICH (Reuters) – The Swiss contract drug factory Lonza plants in the United States and Switzerland will make ingredients for 400 million doses of Moderna’s COVID-19 vaccine each year, Lonza said on Monday.
Lonza, who in September started “large-scale production” in the United States and expects Swiss production to start this year, made the announcement after Moderna said its vaccine candidate showed an efficacy of 94.5%, according to preliminary data.
Moderna, whose vaccine requires two doses per person, said it would continue to produce between 500 million and 1 billion doses per year by 2021, while it plans to ship around 20 million doses to the US already this year.
Basel-based Lonza is building four production lines – one in Portsmouth, New Hampshire and three in Visp deep in the Swiss Alps – for $ 60-70 million each, with each line capable of producing 100 million doses. Moderna also has its own production capacity.
Lonza previously said it had the potential to increase production capacity for Moderna’s vaccines, including at a location in Singapore or in Switzerland, although a spokesperson said Monday that the company was initially focused on completing the four production lines it is now working on.
“With the positive interim results of the mRNA vaccine candidates Moderna and Pfizer, we are witnessing a major step forward in the evolution of vaccine technology, with the potential to change the way we treat future infections and diseases,” said Chief Executive Lonza Pierre-Alain Ruffieux in a statement.
Reporting by John Miller; Edited by Michael Shields
(Reuters) – Lyft Inc. LYFT.O said on Tuesday that it is working on a new service to take part of the burgeoning food delivery market as it seeks to offset a 48% drop in quarterly revenue and a slow recovery from volatile demand.
Lyft shares were up 6% in after-hours trading.
Unlike its larger hail rival, Uber Technologies Inc. UBER.N, Lyft has no food delivery business to support amid the pandemic. This means that, while largely unable to keep up with the drop in travel, Lyft is also avoiding the extra costs of Uber in boosting its Eats business.
But Lyft President John Zimmer on Tuesday said the company was looking to tap into what it saw as an untapped market by offering delivery services for restaurants without launching a consumer-facing platform for food delivery.
“What we hear from restaurants is they are looking for a partner who won’t charge a 30% commission, but still offers delivery services,” Zimmer told Reuters in an interview, adding the service would offer new income opportunities for drivers.
While the details are still unclear, the offer aims to lower Uber’s GrubHub Inc. price tag. GRUB.N and other food delivery services charge a fee to the restaurant for each order – a method that has been challenged by some restaurants and lawmakers.
Lyft in October announced a partnership with GrubHub that will allow members of the Lyft loyalty program to send free restaurants from GrubHub restaurants.
Lyft’s third-quarter revenue fell to $ 499.7 million (£ 377 million), beating the average analyst’s expectations of $ 486.5 million, according to Refinitiv data.
Although Lyft’s stock has surged this week on hopes of a coronavirus vaccine, the stock as a whole has lost more than 15% this year and is now trading more than 50% below the company’s public debut price in 2019.
Lyft on Tuesday said ride demand continued to increase in the months from July to September, but active passengers remained down 44% annually.
In addition to its main business, Lyft offers bicycle, electric scooter and car rental in several cities, but did not specify the financial details of the unit. Lyft on Tuesday said performance was improving in these units.
Third-quarter active riders totaled 12.5 million – a significant increase from 8.69 million in the second quarter but far short of the 22.3 million riders who used Lyft during the third quarter of last year.
Lyft reiterated its goal of achieving profitability based on income before interest, taxes, depreciation and amortization by the end of 2021. The company has implemented drastic cost cuts this year, including extensive layoffs.
Lyft reported a third-quarter adjusted EBITDA loss of $ 239.7 million, less than the $ 254.1 million analysts estimated loss.
The company said its quarterly adjusted EBITDA loss was $ 25 million less than Lyft’s recent estimate, reflecting progress in reducing costs.
Unlike Uber, Lyft only operates in a few cities in Canada and the United States, where Uber last week said demand for airplane travel was recovering at the slowest compared to other regions around the world.
Uber last week reported $ 3.13 billion in third-quarter revenue, nearly half of which came from its food delivery unit. Uber said it could be profitable on an adjusted EBITDA base by the end of 2021 even though travel continues to remain 10% to 20% below pre-pandemic levels.
Uber and Lyft recently scored a significant win in their California home market, where voters certified company-sponsored ballots reinforcing app-based food delivery status and online taxi drivers as independent contractors, not employees eligible for unemployment pay , health insurance and other expensive benefits.
Show workers in California will now receive limited benefits, including a minimum wage rate and accident insurance and the company hopes to turn California’s decision into a model for the nation.
Lyft’s president, Zimmer, on Tuesday said the company was talking to lawmakers in other states and at the federal level and added he was optimistic that the model would be implemented more broadly.
“Politicians in other states are surprised how successful this move is in very progressive circumstances,” said Zimmer, referring to California.
Reporting by Tina Bellon in New York and Akanksha Rana in Bangaluru; Edited by Peter Henderson and Matthew Lewis