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SNAM RETE GAS ANNOUNCES RESULTS FOR THE THIRD QUARTER AND THE FIRST NINE MONTHS OF 2007

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First nine months

  • transportation revenue € 1,283 million +0.6%
  • operating profit € 702 million +3.4%; adjusted operating profit* +4.0% vs the first nine months of 2006
  • net profit € 328 million -3.2%; adjusted net profit* -2,7% vs the first nine months of 2006
  • investments: € 468 million +17.0%
  • gas injected into the transportation network 58.87 billions of cubic metres -10.2%

Antonio Paccioretti, Chief Financial Officer, appointed as the manager responsible for the preparation of financial reports

San Donato Milanese, 29 October 2007 - Snam Rete Gas S.p.A. announces its results for the third quarter and first nine months of 2007 (unaudited), today approved by the Board of Directors.

Carlo Malacarne, CEO of Snam Rete Gas commented:
“The company’s good operating performance in the third quarter of 2007 delivered a 7% rise in net profit. This has partly compensated the decrease in the profit for the first six months which had been adversely affected by the mild weather conditions. The roll out of the programmed investments will enable the company to continue this positive trend in the last quarter of the year.�?.

Terzo trimestre

     

Primi nove mesi

       

2006

 

2007

     

2006

 

2007

 

Var.ass.

 

Var.%

                         
       

Principali dati operativi ed economici

               

19,02

 

16,98

 

Gas naturale immesso nella Rete Nazionale Gasdotti (miliardi di metri cubi)

 

65,54

 

58,87

 

(6,67)

 

(10,2)

0,53

 

0,49

 

Rigassificazione di gas naturale liquefatto (GNL) (miliardi di metri cubi)

 

2,34

 

1,79

 

(0,55)

 

(23,5)

30.784

 

30.951

 

Rete dei gasdotti (chilometri in esercizio)

 

30.784

 

30.951

 

167

 

0,5

207

 

231

 

Utile operativo (milioni di euro)

 

679

 

702

 

23

 

3,4

99

 

106

 

Utile netto (milioni di euro)

 

339

 

328

 

(11)

 

(3,2)


 

* * Adjusted net profit is profit net of non-recurring transactions.


 

Highlights – First nine months of 2007

Financial

  • transportation revenue: € 1,283 million (+0.6%); the increase is principally attributable to incentives received for investments (+€ 59 million), partially offset by lower volumes transported, mainly due to the milder weather conditions in the first few months of the year (-€ 43 million) and the updating of transportation tariffs (-€ 7 million)

  • decrease in recurring variable costs (€ 12 million), mainly for fuel gas, and controllable fixed costs (€ 2 million, -3.2% in real terms)

  • adjusted operating profit: € 700 million +€ 27 million. The increase is mainly due to the result of higher transportation revenue (€ 11 million) and the decrease in operating costs (€ 14 million)

  • adjusted net profit: € 327 million -€ 9 million. The decrease is mainly due to the higher net financial expense (€ 33 million), partially offset by the higher operating profit (€ 27 million)

  •  
  • adjusted EPS € 0.184 +5.1% vs the first nine months of 2006

  • net financial debt: € 5,618 million; +€ 363 million vs 31 December 2006. Leverage (debt/debt+equity): 62.4% vs. 58.7% at 31 December 2006

Operating

  • investments: € 468 million (+17.0%), 84% of which will be incentivised. Capital expenditure outlays mainly relates to development of the transportation network. The main project is the upgrading of the import system from North Africa

  • gas injected into the transportation network -6.67 billion cubic metres (-10.2%); the decrease is due to lower consumption by the residential sector following milder weather conditions in the first few months of the year, only partially offset by the increase in gas demand of the thermoelectric sector, and lower volumes of gas injected into the storages

Outlook

  • despite the fact that the first nine months of 2007 have been negatively affected by the mild weather conditions on residential consumption, gas demand is expected to grow by more than an average 2% in the four years from 2007 to 2010, due to estimated higher demand from the thermoelectric sector

  • the company confirms its commitment to investing in transportation capacity to meet further growth with capital expenditure for 2007 expected to exceed € 700 million

Highlights – third quarter 2007

Financial

  • transportation revenue € 414 million (+1.2%); the increase is mainly due to incentives received for investments made in 2005

  • net profit: € 106 million (+7.1%)

Operating

  • investments: € 178 million (+1.1%)

  • gas injected into the transportation network: -2.04 billion cubic metres (-10.7%); the decrease is mainly due to lower volumes of gas injected into the storages

Appointment of the manager responsible for the preparation of financial reports

The Board of Directors of Snam Rete Gas today appointed Antonio Paccioretti as the Manager responsible for the preparation of financial reports pursuant to article 154-bis of Legislative Decree no. 58/1998 with the approval of the Board of Statutory Auditors and verified that he has the necessary professional requirements required by the by-laws in accordance with the law. The Board of Directors ascertained the adequacy of the powers and means available to this Manager to carry out his duties. Antonio Paccioretti is the company’s Chief Financial Officer.

The figures and information given in this press release are taken from the company’s third quarter report at 30 September 2007 published concurrently with this document. The quarterly report includes the certification rendered by the manager responsible for the preparation of financial reports pursuant to the requirements of paragraph 2, article 154 - bis of the Legislative Decree no. 58/1998.

Disclaimer
This press release includes forward-looking statements, especially in the section on the group’s outlook about future gas demand, investment plans and future performance. Such statements by their very nature are subject to risk and uncertainty as they depend on the fact that certain events and developments will take place. The actual results may differ from those communicated due to different reasons, such as foreseeable trends in demand, offer and natural gas prices, general macro-economic conditions, the effect of new energy and environment legislation, the successful development and implementation of new technologies, changes in the stakeholders' expectations and other changes in business conditions.

Summary of the results for the first nine months of 2007 2007

The Net profit for the first nine months of 2007 (€ 328 million) decreased by € 11 million (3.2%) compared to the same period of 2006 due to the higher net financial expense (€ 33 million), partly offset by the greater operating profit (€ 23 million). Excluding the effect of the non-recurring transactions1, the net profit decreased by € 9 million, mainly due to the greater net financial expense (-€ 33 million) and greater income taxes (-€ 3 million), partly offset by the higher operating profit (+€ 27 million).

The Operating profit 2 conseguito nei primi nove mesi del 2007 ammonta a 702 milioni recorded for the first nine months of 2007 amounts to € 702 million, up € 23 million or 3.4% on the same period of 2006. Excluding the effect of non-recurring transactions recognised in the first nine months of 2006 and 2007, operating profit increased by € 27 million (4%) mainly due to:

(i) the decrease in operating costs (+€ 14 million, net of the items netted against revenue) mainly due to the reduction in recurring variable costs (+€ 12 million), principally attributable to the purchase of fuel gas used by the compression stations (€ 11 million) and the decrease in controllable fixed costs (+€ 2 million); (ii) the increase in transportation revenue (€ 11 million, net of the items netted against costs), positively affected by investment incentives (+€ 59 million) and negatively impacted by lower gas volumes transported (-€ 43 million) and the updating of transportation tariffs (-€ 7 million); (iii) lower accruals to the provisions for risks and charges (€ 4 million).

These positive factors were partly offset by the higher depreciation and amortisation charges following the roll out of new transportation infrastructures during the period (€ 4 million).

Net financial debt amounted to € 5,618 million, an increase of € 363 million on 31 December 2006. The net cash flows from operating activities (€ 827 million) were used to cover: (i) net capital expenditure outlays (€ 520 million); (ii) the repurchase of treasury shares (€ 336 million)3; and (iii) payment of the ordinary 2006 dividend (€ 334 million). Resort to external funds amounted to € 363 million.

Net financial debt decreased by € 116 million compared to 30 June 2007.

Summary of the results for the third quarter of 2007

The Net profit for the third quarter of 2007 (€ 106 million) increased by € 7 million (7.1%) compared to the same period of 2006 due to the greater operating profit (€ 24 million), partially offset by the higher net financial expense (€ 13 million) and higher income taxes (€ 4 million).

The Operating profit recorded for the third quarter of 2007 amounts to € 231 million, up € 24 million or 11.6% on the same period of 2006. This increase is mainly due to:

(i) the decrease in operating costs (+€ 7 million, net of the items netted against revenue), mainly due to the lower recurring variable costs for the purchase of fuel gas used by the compression stations (+€ 4 million) and the lower controllable fixed costs (+€ 1 million);
(ii) higher transportation revenue (+€ 6 million, net of the items netted against costs), positively affected by investment incentives (+€ 19 million) and negatively affected by the lower gas volumes transported (-€ 13 million) and the updating of transportation tariffs (-€ 2 million);
(iii) lower depreciation and amortisation charge (+€ 7 million);
(iv) lower accruals to the provisions for risks and charges (+€ 2 million).
(iv) lower accruals to the provisions for risks and charges (+€ 2 million).

Consolidated income statement, balance sheet and cash flow statement (*)

Income statement

             

(milioni di €)

Terzo trimestre

 

Primi nove mesi

     

2006

2007

 

2006

 

2007

 

Var.ass.

Var.%

416

420

Ricavi della gestione caratteristica

1.300

 

1.306

 

6

0,5

2

1

Altri ricavi e proventi

22

 

2

 

(20)

(90,9)

1

 

di cui non ricorrenti

20

 

 

 

(20)

(100,0)

418

421

Ricavi totali

1.322

 

1.308

 

(14)

(1,1)

(86)

(72)

Costi operativi

(291)

 

(250)

 

41

(14,1)

(1)

 

di cui non ricorrenti

(14)

 

2

 

16

 

332

349

Margine operativo lordo

1.031

 

1.058

 

27

2,6

(125)

(118)

Ammortamenti e svalutazioni

(352)

 

(356)

 

(4)

1,1

207

231

Utile operativo

679

 

702

 

23

3,4

(42)

(55)

Oneri finanziari netti

(122)

 

(155)

 

(33)

27,0

165

176

Utile prima delle imposte

557

 

547

 

(10)

(1,8)

(66)

(70)

Imposte sul reddito

(218)

 

(219)

 

(1)

0,5

 

 

di cui non ricorrenti

(3)

 

(1)

 

2

(66,7)

99

106

Utile netto (**)

339

 

328

 

(11)

(3,2)


 

(**) The Net profit is totally attributable to the shareholders of Snam Rete Gas.


 

Balance sheet

     

(milioni di €)

30.06.2007

 

31.12.2006

30.09.2007

Var.

9.745

Immobili, impianti e macchinari

9.715

9.798

83

49

Attività immateriali

48

49

1

(148)

Debiti netti relativi all'attività di investimento

(236)

(156)

80

9.646

Capitale immobilizzato

9.527

9.691

164

(594)

Capitale di esercizio netto

(539)

(661)

(122)

(29)

Fondi per benefici ai dipendenti

(34)

(31)

3

9.023

CAPITALE INVESTITO NETTO

8.954

8.999

45

 

 

 

 

 

3.289

Patrimonio netto

3.699

3.381

(318)

5.734

Indebitamento finanziario netto

5.255

5.618

363

9.023

COPERTURE

8.954

8.999

45


 

Cash flow statement

   

(milioni di €)

 

 

Primi nove mesi

30.06.2007

 

2006

2007

222

Utile netto

339

328

 

A rettifica:

   

238

- Ammortamenti ed altri componenti non monetari

368

355

249

- Interessi e imposte sul reddito

349

373

709

Flusso di cassa del risultato operativo prima della variazione del capitale di esercizio

1.056

1.056

96

Variazione del capitale di esercizio relativo alla gestione

83

83

(257)

Interessi e imposte sul reddito incassati (pagati)

(293)

(312)

548

Flusso di cassa netto da attività di esercizio

846

827

(269)

Investimenti in immobili, impianti e macchinari e attività immateriali

(374)

(440)

 

Disinvestimenti

3

 

(88)

Debiti netti relativi all'attività di investimento

(47)

(80)

191

Free cash flow

428

307

479

Variazione dei debiti finanziari

188

363

(670)

Flusso di cassa del capitale proprio

(616)

(670)

0

Flusso di cassa netto del periodo

0

0

 

 

 

 

 

 

 

 

191

Free cash flow

428

307

(670)

Flusso di cassa del capitale proprio

(616)

(670)

(479)

Variazione indebitamento finanziario netto

(188)

(363)


 

(*) The consolidated income statement, balance sheet and cash flow statement have not been audited. The key captions of the reclassified schedules can easily be reconciled to those of the legally-required format using the same methods applied for the 2006 Annual Report.

1 Non-recurring transactions in the first nine months of 2006 mainly related to the recognition of income following the favourable outcome of a dispute with third parties (+€ 19 million) and payment of termination benefits for employees (-€ 14 million). They affected operating profit and the net profit for the period by +€ 6 million and +€ 3 million respectively. Non-recurring transactions in the first nine months of 2007 related to the changes made to the legislation governing the Italian “TFR�?, ie the benefits to which employees of Italian companies are entitled upon termination of employment for any reason whatsoever, introduced by the 2007 Finance Act. They affected operating profit and the profit for the period by +€ 2 million and +€ 1 million, respectively.

2Operating profit is analysed by considering only those elements that have led to a change therein as application of the gas sector tariff regulations generates costs and revenue which are netted.

3 The cost relates to the period from 1 January to 2 May 2007, when the buy back plan was completed.

Riferimenti societari

Investor Relations Snam Rete Gas
Tel.: +39 02.520.38272 - Fax: +39 02.520.38650
Casella e-mail: investor.relations@snamretegas.it

Relazioni Esterne Snam Rete Gas
Tel.: +39 02.520.58691 - Fax: +39 02.520.38227
Casella e-mail: relazioni.esterne@snamretegas.it

Ufficio Stampa Eni
Tel.: +39 02.520.31875 - +39 06.5982398
Casella e-mail: ufficio.stampa@eni.it

 
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updated
05 August 2016 - 16:18 CEST