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Snam results for the first quarter of 2019

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BoD

San Donato Milanese, 15 May 2019 - Under Chairman Luca Dal Fabbro, Snam’s Board of Directors yesterday approved the consolidated results for the first quarter of 2019 (unaudited).

 

Highlights

  • Net profit: 283 million euro (+29 million euro; +11.4% compared with the first quarter of 2018), against the backdrop of a positive operational performance, reduction in the average cost of debt and higher net income from equity investments
  • EBIT: 366 million euro (+11 million euro; +3.1% versus the first quarter of 2018), also benefiting from the implementation of efficiencies
  • Technical investments: 166 million euro, including investments in innovation and the energy transition (Snamtec) of 25 million euro
  • Free cash flow: 634 million euro (+99 million euro; +18.5% versus the first quarter of 2018)
  • Net financial debt: 11,234 million euro (11,548 million euro at 31 December 2018)
 

Significant events

  • Climate Action Bond: on 28 February 2019, the issue of Snam’s first Climate Action Bond, the first in Europe, was concluded successfully, with a nominal value of 500 million euro, an annual coupon of 1.25% and maturity on 28 August 2025;
  • ECP programme: Snam’s Board of Directors resolved to increase the size of the Euro Commercial Paper Programme (“ECP Programme”) on 19 March 2019 from 1 billion euro to 2 billion euro;
  • Sustainable mobility: two agreements were established in the first quarter. Specifically: (i) on 20 March 2019, a contract was signed with Tamoil for the development of a first batch of 5 natural gas refuelling stations in national territory, promoting the development of sustainable mobility for cars and lorries in Italy; (ii) on 28 March 2019, a Memorandum of Understanding (MoU) was signed with FS Italiane and Hitachi Rail, aiming to convert part of the current fleet of trains of the FS Italiane Foundation from diesel to methane, under the scope of the promotion of sustainable mobility in public transport in Italy;
  • Treasury shares: on 02 April 2019, Snam's Shareholders' Meeting resolved to renew the Share buyback programme and cancel 74,197,663 treasury shares without reducing the share capital; the transaction was completed on 17 April 2019.
 

Marco Alverà, Snam's Chief Executive Officer, commented on the results:

“Results for the first quarter of 2019 were very positive, underpinning the growth strategy outlined in Snam’s business plan to 2022. The double-digit increase (+11.4%) in consolidated net profit reflects strong operating results and the continuous optimization of our financial structure.

Snam’s investments in Italy increased by over 6% compared to the first quarter of 2018. We are modernising our network and increasing its sustainability, specifically leveraging the Snamtec project to develop new businesses and focus on digital transformation. 

In this first quarter, we laid the foundations for another year of value creation for all our stakeholders, further strengthening the company’s role as a leader in the energy transition and increasing its focus on community development”.

 
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updated
15 May 2019 - 16:00 CEST