Snam: consolidated results for the first half of 2018
San Donato Milanese, 1 August 2018 - The Snam Board of Directors, which met yesterday under the chairmanship of Carlo Malacarne, has approved the consolidated half-year Report at 30 June 2018 (subjected to limited audit).
- Total revenue: €1,242 million 1 (+€28 million; +2.3% compared with the first half of 2017, thanks to the continuation of the investment plan)
- EBIT: €729 million (+€15 million; +2.1% compared with the first half of 2017)
- Net profit: €523 million (+€19 million; +3.8% compared with the first half of 2017)
- Technical investments: €349 million (€425 million in the first half of 2017)
- Free cash flow: €1,037 million
- Net financial debt: €11,421 million (€11,550 million at the end of 2017)
- Demand for natural gas: 38.78 billion cubic metres (-1.6% compared with the first half of 2017, due to lower consumption recorded in the thermoelectric sector following the return to normal electricity importing flows)
- Gas injected into the transportation network: 37.93 billion cubic metres (-0.4% compared with the first half of 2017)
- Available storage capacity: 12.4 billion cubic metres (+0.2 billion cubic metres compared with 30 June 2017), of which 11.6 billion cubic metres assigned at 30 June 2018 (equal to 94.1% of the available capacity for the 2018-2019 thermal year)
- Accidents: sharp reduction in accidents compared with the first half of 2017 (3 accidents involving employees and contract workers in the first half of 2018 compared with 7 accidents in the first half of 2017), as a result of Snam’s ongoing commitment to developing and promoting the protection of health and safety in the workplace
- 2018 Net Profit: around €1 billion (previous guidance of €975 million)
- Net financial debt at the end of 2018: confirmed at €11.5 billion, including equity investment acquisitions of around €160 million and the share buyback already executed
- 2018 Cost of debt: now expected at 1.6% (previous guidance of 1.8%)
- Efficiency program: targeting savings by 2021 increased from over €40 million to over €50 million
- On 30 May 2018, a controlling stake equal to 82% of the share capital of TEP Energy Solution (TEP), one of the main Italian companies active in the energy efficiency sector, was acquired after obtaining antitrust clearance at a total value of approx. €21 million;
- In the first half of 2018, 48,339,437 Snam shares (equal to 1.39% of the share capital taking into account the cancellation of 31,599,715 treasury shares with no share capital reduction were acquired for a total cost of €183 million;
- On 20 July 2018, a European consortium consisting of Snam (60%), Enagás (20%) and Fluxys (20%) entered into an agreement with the Greek agency for privatisations HRADF and Hellenic Petroleum, for the acquisition of a 66% stake in DESFA, the national operator of natural gas infrastructure in Greece.
Marco Alverà, Snam CEO, commented:
“The first half of 2018 was very positive for Snam. All the main economic indicators were up in comparison to 2017 and were in line with our plan targets, confirming our development path and our commitment to secure growing and sustainable returns for shareholders. The efficiency program is also delivering results that exceeded our expectations, allowing us to raise our cost reduction target by 25% to 2021. Moreover, as a result of strong cash generation, we have reduced debt by over €120 million in the first half of this year and ensured both dividend payments and ongoing share buyback activity.
These positive results as well as our commitment to financial efficiency, has allowed us to increase our guidance for net profit for 2018 to around €1 billion.
Snam is increasingly committed to promoting a more sustainable, efficient and secure energy system in Italy and Europe. The awarding of the tender in Greece will allow us to make an even greater contribution to the creation of the Energy Union. Furthermore, with the new acquisitions made in the first part of the year, particularly in the biomethane sector, we aim to strengthen the role of Snam in supporting the development of renewable sources and the circular economy in Italy”.
(1) Net of pass-through items.
01 August 2018 - 17:30 CEST