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Snam: 2017 consolidated and draft financial statements

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San Donato Milanese, 14 March 2018 – Snam’s Board of Directors, which met yesterday under the chairmanship of Carlo Malacarne, has approved: (i) the 2017 consolidated financial statements and the draft financial statements; and (ii) the Consolidated non-financial statement prepared pursuant to Legislative Decree No. 254/2016. The Board also decided to propose to the Shareholders’ Meeting a dividend of €0.2155 per share, of which €0.0862 per share was already paid out in January 2018.

Financial highlights[1]

  • Total revenue: EUR 2,441 million[2] (+EUR 26 million; +1.1% compared to the 2016 pro-forma adjusted total revenues, thanks to the continuous investments and to higher volumes of gas injected)
  • Adjusted EBIT: EUR 1,363 million (+EUR 27 million; +2.0% compared to the 2016 pro-forma adjusted operating profit, also thanks to the reduction in operating costs that are benefiting from the efficiency measures initiated)
  • Adjusted net profit: EUR 940 million (+EUR 95 million; +11.2% compared to the 2016 pro-forma adjusted net profit, thanks to lower net financial expenses, which benefit from the reduction in the average cost of debt)
  • Technical investments: EUR 1,034 million (EUR 906 million in 2016)
  • Free Cash Flow: EUR 423 million
 

Operating highlights

  • Natural gas demand: 75.1 billion cubic metres (+6.0% compared to 2016, an increase for the twelfth consecutive quarter)
  • Gas injected into the transportation network: 74.6 billion cubic metres (+5.6% compared to 2016)
  • Available storage capacity: 12.2 billion cubic metres (+0.2 billion cubic metres compared to 31 December 2016), which are almost entirely allocated for the thermal year 2017-2018 (99.9%)  
 

Main events

  • Purchased as of 31 December 2017, under the share buyback programme initiated on 7 November 2016, 84,788,366 own shares, equal to 2.42% of the share capital, for a total cost equal to EUR 313 million, with an average unit cost equal to EUR 3.69 per share
  • Completed, on 13 October 2017, the acquisition of 100% of the share capital of Infrastrutture Trasporto Gas S.p.A. and 7.3% of Adriatic LNG S.r.l.
  • Successfully concluded the buyback of Snam bonds in circulation with a total nominal value equal to EUR 607 million. The repurchase price, equal to a total of EUR 656 million, was mostly financed by a bond issue with a nominal value of EUR 650 million

***

The 2017 Annual Report, which contains the 2017 Consolidated non-financial statement, prepared in the form of a specific section of the Management Report in accordance with the provisions referred to in Article 5, paragraph 1 (a) of Legislative Decree No. 254/2016, has been provided to the Board of Statutory Auditors and the Auditing Company, and will be made available to the public at the registered office, on the Company's website www.snam.it, together with the reports of the Board of Statutory Auditors and the Auditing Company, in compliance with the terms provided by Legislative Decree No. 58/98 (Consolidated Finance Act - TUF).

 

Summary of 2017 results

In order to allow a better evaluation of the performance of the group and a greater comparability of data, Snam management has developed alternative measures of performance that are not required by the IFRS (Non-GAAP measures), represented mainly by the results in the adjusted and pro-forma adjusted configuration.

These results, in addition to excluding special items, because of the elements of discontinuity that have characterised the 2016 financial year and to a limited extent this period, reflect Italgas Group's contribution to continuing operations by applying the relevant participation quota, equal to 13.5%, to Italgas Group's net profit for the whole year.

 
 

[1] Unless otherwise specified, the following results for the 2016 financial year refer to continuing operations (transport, regasification and storage of natural gas) and exclude, therefore, the contribution of the natural gas distribution sector which is represented as “ discontinued operations” pursuant to IFRS 5 “Non-current assets held for sale and discontinued operations”. For a reconciliation of the reported income statement with the adjusted pro-forma income statement, see p. 13 of this press release.

 

[2] Net of pass-through items.

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updated
02 July 2018 - 20:36 CEST