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ITEN

Snam announces results for the first half of 2017

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San Donato Milanese, 26 July 2017 - Snam’s Board of Directors, at yesterday’s meeting chaired by Carlo Malacarne, approved the consolidated half-year report to 30 June 2017 (subjected to a limited audit) and the consolidated results for the second quarter of 2017 (unaudited).

Financial highlights [1]

  • Total revenue: €1,268 million (+2.0% compared with the adjusted pro-forma total revenue for the first half of 2016)
  • EBIT: €714 million (+3.6% compared with adjusted pro-forma EBIT for the first half of 2016 and also thanks to a reduction in operating costs which benefited from efficiency measures)
  • Net profit: €504 million (+18.0% compared with the adjusted pro-forma net profit for the first half of 2016 and also thanks to lower net financial expense which benefited from the reduction in the average cost of debt)
  • Technical investments: €425 million (+13.6%)
  • Free Cash Flow: €793 million
 

Operating highlights

  • Gas injected into the transportation network: 38.08 billion cubic metres (+11.7% compared with 30 June 2016)
  • Available storage capacity: 12.2 billion cubic metres (+3.4% compared with 30 June 2016)
 

Significant events

  • In accordance with the share buyback programme launched on 7 November 2016, 82,832,701 treasury shares, equal to 2.37% of the share capital, were purchased on 30 June 2017, at a total cost of €305 million
  • Framework agreement concluded with Eni for the development of methane supply stations in Italy
  • Signing of the definitive agreements with Edison for the investment in the 83.3 km-long pipeline connecting Minerbio and Cavarzere, entry point of LNG coming from the Adriatic LNG terminal, thus adding a significant infrastructure to Snam’s network
 

Marco Alverà, Snam's CEO, made the following comments on the results:

“We achieved positive results in the first half of 2017. Our investments in the national network are progressing well, with 109 new construction sites opened, of which 23 dedicated to major projects. With the new development activities, the connection of the first biomethane plant to our network and the development of methane supply stations we are playing an increasingly significant role in leading the energy transition. Against the backdrop of a favourable environment with gas demand growing 10% in the period, we successfully increased operational efficiency and reduced the cost of debt. The strong results, combined with the investments made over the period, confirm the group's commitment to delivering profitable growth for shareholders”.

 
 

[1] Unless specified otherwise, the results for 2016 refer to continuing operations (gas transportation, regasification and storage, as well as corporate activities) and therefore exclude the contribution of the natural gas distribution segment, represented as discontinued operations, pursuant to IFRS 5 "Non-current assets held for sale and discontinued operations". See page 11 for the reconciliation of the reported income statement with the adjusted pro-forma income statement for the first half of 2016.

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29 August 2017 - 18:10 CEST