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Snam Rete Gas: 259 million euro the net income as at June 30, 2003 (132 in the second quarter).

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The Board of Directors of Snam Rete Gas today approved the second quarter 2003 figures and examined the First Half Report as at June 30th 2003, showing net profit at 259 million euro, with an increase of 33 million euro (+15%) compared to the first half 2002. The company is going on with its efficiency programme which will bring to a annual decrease in fixed controllable costs of 5-6% in 2003 compared to 2002.

REPORT AS AT JUNE 30th ,2003
 

Operating scenario
Gas injected into Snam Rete Gas network during the first six months of 2003 totalled 39.91 bcm, with an increase of 0.6 bcm, or 1.5% compared to last year same period. This rise is due to a recovery in domestic consumption, partially offset by the lower gas injected in the storage. In the first half the gas demand totalled 41.2 bcm with a rise of 7%.


 

Income Statement
 

  

(million euro)

  

2Q

1Q

  

2002

2003

2002

2003

REVENUE FROM ORDINARY ACTIVITIES

444

435

889

894

OTHER REVENUE AND INCOME

(5)

3

11

3

TOTAL REVENUE

439

438

900

897

OPERATING COSTS

(119)

(76)

(255)

(172)

GROSS OPERATING MARGIN

320

362

645

725

DEPRECIATION & AMORTIZATION

(117)

(117)

(226)

(232)

OPERATING PROFIT

203

245

419

493

NET FINANCIAL INCOME (EXPENSES)

(37)

(31)

(78)

(66)

INCOME BEFORE EXTRAORDINARY ITEMS AND TAXES

166

214

341

427

NET EXTRAORDINARY INCOME (EXPENSES)

(6)

3

(6)

1

PRE-TAX INCOME

160

217

335

428

INCOME TAXES

(55)

(85)

(109)

(169)

NET PROFIT

105

132

226

259


 

 

In the first half 2003, operating profit reached 493 million euro, with an increase of 74 million euro (+18%) compared to the first half of 2002. This rise was due to (i) increased transmission revenue (18 million euro), (ii) a reduction in the operating costs for regulated activities (11 million euro), (iii) the absence of the Sicily tax (32 million euro) and (iv) the different effect of costs and revenues connected with the gas modulation services that will be absorbed during the year (16 million euro). These positive effects have been partially offset by higher amortisation (6 million euro).

In the second quarter, the operating profit (245 million euro) increased by 42 million euro, +21%, due mainly to increased transmission revenue (5 million euro), a reduction in operating costs of regulated activity (5 million euro) and to the absence in 2003 of the Sicily tax (32 million euro).

Net profit (259 million euro) increased by 33 million euro (+15%), compared to the first half 2002. The increase, deriving from the higher operating profit, and from the financial management improvement (12 million euro) due to the lower level of average debt and a reduction in extraordinary expenses (7 million euro), was partially absorbed by an increase in income tax (60 million euro) following the pre-tax income growth and the absence of tax benefits under "Tremont bis law" (26 million euro).


 

Revenues from operations
 

(million euro)

1Q

1H

  

2002

%

2003

%

2002

%

2003

%

Transmission

428

96,4%

419

96,3%

838

94,2%

864

96,6%

Regasification

11

2,5%

12

2,8%

22

2,5%

22

2,5%

Revenues from regulated activities

439

98,9%

431

99,1%

860

96,7%

886

99,1%

Compression services for storage

1

0,2%

0

0,0%

20

2,2%

0

0,0%

Other revenues

4

0,9%

4

0,9%

9

1,1%

8

0,9%

Revenues from non regulated activities

5

1,1%

4

0,9%

29

3,3%

8

0,9%

Total revenue from ordinary activities

444

100,0%

435

100,0%

889

100,0%

894

100,0%


 

 

Revenues from transmission services (864 million euro) increased by 26 million euro (+3%) due mainly to the effect of new development capex that became operational and increased volumes transmitted (18 million euro).


 

Operating Cost


 

(million euro)

1Q

1H

  

2002

2003

2002

2003

Purchase, services and other costs

93

53

199

122

Labour cost

26

23

56

50

Total operating cost

119

76

255

172


 

 

The operating cost (172 million euro) fell by 83 million euro of which 71 million euro due to cost with a corresponding offset in revenue or are non-recurring. A further decrease of 12 million euro (11 million related to regulated activities) is due to lower labour cost (6 million euro) mainly due to reduction in workforce and reduction in external services (6 million euro)


 

Balance sheet


 

(million euro)

   

31/12/2002

31/03/2003

30/06/2003

Variazione

TANGIBLE FIXED ASSET

9.313

9.262

9.250

(63)

INTANGIBLE FIXED ASSET

106

98

96

(10)

NET DEBTS RELATED TO INVESTMENTS

(131)

(91)

(121)

10

FIXED ASSET

9.288

9.269

9.225

(63)

NET WORKING CAPITAL

(264)

(389)

(445)

(181)

EMPLOYEES’ SEVERENCE INDEMNITY

(17)

(17)

(18)

(1)

NET CAPITAL EMPLOYED

9.007

8.863

8.762

(245)

SHAREHOLDERS’ EQUITY

5.451

5.578

5.397

(54)

NET FINANCIAL DEBT

3.556

3.285

3.365

(191)

FINANCING

9.007

8.863

8.762

(245)


 

 

Net capital employed (8,762 million euro) decreased by 245 million euro compared to December 31st, 2002 is consequence of a lower working capital, mainly due to provision of period taxation.

In the first half 2003 investments reached 184 million euro (119 in the second quarter), of which 129 million euro referred to development plans (84 in the quarter), while 55 million euro to maintenance investments (35 during the quarter).

San Donato Milanese, 30th July 2003


 

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updated
05 August 2016 - 16:17 CEST