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THE COMPANY

  • What is the background of Snam?

    Snam Rete Gas (now Snam) was set up on 15 November 2000. On 1 July 2001 the company became operational, with the name of Snam Rete Gas and received the natural gas transport and dispatching and the liquefied natural gas regasification lines of business from eni S.p.A. Snam shares have been listed on the Italian stock market since 6 December 2001. On 30 June 2009, the company bought the entire share capital of Italgas, Italy's leading natural gas distributor, and Stogit, the country's biggest operator in the natural gas storage sector. On 5 December 2011, the Snam Ordinary and Extraordinary Shareholders’ Meeting authorised the transfer of the gas transmission, dispatching and metering business to the subsidiary company Snam Trasporto (100%) and approved, with effect from 1 January 2012, the change of its company name from “Snam Rete Gas” to “Snam.” Starting from 1 January 2012, Snam Trasporto has been renamed Snam Rete Gas. At 15 October 2012 eni S.p.A. has completed the sale of 30% of the voting share capital of Snam to Cassa Depositi e Prestiti (“CDP”). In early 2012 Snam signed a strategic alliance with Fluxys; in a 50/50 joint venture with the Belgian operator it acquired a 31.5% equity stake in the Interconnector UK, the subsea pipeline between the UK and Belgium, providing a link between the UK and the most important continental gas trading places; the two companies have also acquired from eni the 51% of Interconnector Zeebrugge Terminal and the 10% of Huberator. Confirming the key role that the Company aims to play on the international arena, at the beginning of 2013 Snam has taken part, through a 45% stake, in a consortium together with EdF (20%) and GIC (35%), the Singapore sovereign fund, for the acquisition of the assets of TIGF (now Teréga), the player, owned by Total, which owns and manages a transport pipeline of 5,000 km and two storage sites in the southwest of France. On December 2014 Snam completed the acquisition of the stake (84.47%) held by CDP GAS in Trans Austria Gasleitung GmbH (TAG), the largest import pipeline bringing Russian gas from Austria/Slovak border to Italy, which represents a strategic opportunity to establish reverse flow capability to Southern Germany and Eastern Europe. Snam's international development continued in 2015 with the acquisition of a 20% stake in Trans Adriatic Pipeline AG (TAP), the company responsible for developing the pipeline that will run from the Turkey-Greece border to Italy along the Southern Corridor, enabling gas produced in Azerbaijan to reach European markets through the italian infrastructure.
    It has been completed, effective as of 7 November 2016, the separation of Snam from the natural gas distribution business (Italgas). In December 2016 Snam, in a consortium with Allianz, completed the purchase from OMV of 49% of Gas Connect Austria: given its strategic Central European location GCA also fulfills an important transportation function for several other adjacent markets.
    In 2018 it was completed the acquire from Fluxys and Snam of the 33.5% stake owned by Caisse de dépôt et placement du Québec (CDPQ) in Interconnector UK, the bi-directional pipeline linking the United Kingdom into Belgium and the Continent; and the consortium consisting of Snam (60%), Enagás (20%) and Fluxys (20%) completed the acquisition of a 66% stake in DESFA, the Greek national operator in the natural gas infrastructure sector, for a consideration equal to € 535 million. In July 2020 Snam, in consortium with 5 international investment funds, has completed the acquisition of 49% of ADNOC Gas Pipeline from The Abu Dhabi National Oil Company (ADNOC): ADNOC gas pipeline holds, for a period of 20 years, the management rights for 38 pipelines in the United Arab Emirates, at approximately 10.1 billion dollars. In 2021 Snam and Eni have entered into an agreement for the sale by Eni to Snam of a 49.9% stake in its subsidiaries operating TTPC and TMPC gas pipelines connecting Algeria to Italy. Finally in december 2021 has finalised the acquisition from Thai energy company PTTER of a 25% stake in the East Mediterranean Gas Company (EMG), owner of the Arish-Ashkelon gas pipeline (part of the so-called “Peace Gas Pipeline”) connecting the Israeli terminal of Ashkelon to the Egyptian receiving station of Al-Arish. .

     

  • What’s Snam business?

    Snam is Europe’s leading operator in natural gas transport and storage, with an infrastructure capable of enabling the transition to hydrogen. It operates a transmission network of around 41,000 km between Italy, Austria, France, Greece and the UK and holds 3.5% of the world’s storage capacity. It is among the top ten Italian listed companies by market capitalisation. With its 80 years of experience in the development and management of networks and plants, it guarantees security of supply and promotes energy transition in the areas it serves. In addition to transport and storage, Snam is also a major player in LNG regasification. The company is also active in Asia, the Middle East and North America. Snam is committed to renewing its infrastructure with hydrogen-ready standards and to developing integrated projects along the green gas value chain, with investments in biomethane, hydrogen, sustainable mobility and energy efficiency. It also creates new green areas through a benefit company focused on forestation projects. Snam has set a zero net Scope 1 and 2 CO2 equivalent emissions target by 2040 and a Scope 3 indirect emissions reduction target (subsidiaries, suppliers) by 2030.

  • What’s Snam’s gas network extension?

    At 31 December 2021 the Snam transport system consists of 32,767 km of natural gas pipelines. Eleven compression stations dedicated to line pressure service are part of the network, along with gas regulation, reduction and mixing plants and other plants necessary for the transport and dispatching of gas. In accordance with resolution no. 120/01 ("Definition of criteria for the determination of rates for natural gas transport and dispatch and for the use of LNG terminals and the reservation of capacity"), the Snam natural gas pipelines have been divided into two parts: the first attributed to the National Gas Pipeline Network, for 9,655 km and the second to the Regional Gas Pipeline Network, for the remaining 23,112 km. Snam runs also 9 storage fields (through the subsidiary Stogit).
  • What are the main European peers for Snam?

    Snam's main competitors in the regulated business of gas and electricity in Italy and in Europe, according to the financial community, are:
     
    -  Terna (Italy): main owner and operator of the National Transmission Network of electric energy at high voltage.
     
    -  Enagas (Spain): energy operator horizontally integrated, leader in transport and storage of natural gas and regasification of liquefied natural gas in Spain and System Operator on all the national network.
     
    -  REE (Spain): operator of the continental electric network, insular and extra-insular. It is also the System Operator.
     
    -  National Grid (UK): operates in the regulated businesses of transmission and distribution of electricity and gas mainly in UK and north-east United States . It was founded by the merger of National Grid Group and Lattice Group.
     
    On the basis of the regulated nature of the activity, the following English utilities operating in the water sector are also considered as peers: United Utilities e Severn Trent.

REGULATORY FRAMEWORK

  • What does RAB stand for?

    RAB represents the Net Asset value, calculated by the Italian Authority (AEEGSI) for the calculation of reference revenues. 

     
  • What is the Regulatory period?

    Period of time (usually four years) for which criteria are defined for setting tariffs for transporting and dispatching natural gas and for regasification of liquefied natural gas.
    Transportation:  2020-2023 5th regulatory period (4 years)
    - Regasification: 2020-2023 5th regulatory period (4 years).
    Storage: 2020-2025 5th regulatory period (6 years). 
  • What is the rate of return?

    The WACC ((Weighted avarage cost of capital) indicates the remuneration of the invested capital as recognised by the Italian Authority at the beginning of every regulatory period.

  • What is the rate of return for the different three businesses?

    The Italian Authority recognize to Snam a rate of return on net invested capital for 5th period: 5.7% (years 2020-2021) and 5.1% (year 2022) for transport; 6.8% (years 2020-2021) and 6.1% (year 2022) for regasification; 6.7% (years 2020-2021) and 6% (year 2022) for storage.

  • Does exist any incentive on new investments?

      Transport Storage Regasification

    Pre-tax WACC*

    5th period:
    5.7% 2020-2021; 5.1 year 2022

    LIC remuneration:
    -WACC 5.3% 2020-2021
    -WACC 4.8% year 2022

    5th period:
    6.7% 2020-2021: 6% year 2022


    LIC excluded

    5th period:
    6.8% 2020-2021; 6.1 year 2022


    LIC excluded

     

     

     

    INCENTIVES
    ON NEW INVESTMENTS

    5th period (investments during financial year by 2022): +1.5% for 10 years(investments in new capacity of transportation and with cost analysis benefits >1.5)

    5th period: withholding 50% of revenues from auctions  short-term. Possible optional strengthening of the percentage, against % reduction, revenues guarantees

    5th period: withholding 40% of revenues  flexibility services (covering revenues not subject to guarantee factors)

     * The duration of the WACC regulatory period is set at six years (2022-2027), and a mechanism is provided for updating the rate at mid-period according to the prevailing situation.

     

     

     

SNAM ON THE STOCK EXCHANGE AND THE DIVIDEND

  • On which Stock Exchange Snam share are listed?

    Snam shares have been listed on the Italian Stock Exchange since 6 December 2001. On March 18th, 2002, the company's shares were listed on the MIB30 index (today FTSE MIB). The Snam stock is also included in the leading international indexes (STOXX Europe 600, STOXX Europe Utilities) and increased its presence in the main international Sustainability Indices (FTSE4Good, Stoxx Global ESG Leaders, ECPI, MSCI, United Nations Global Compact 100, Vigeo and Ethibel).
  • Which is the identification number of Snam shares?

    All the shares listed on the Italian Stock Exchange are marked by an alphanumeric code with international validity. This code is an ISIN (International Securities Identification Number). For Snam shares the ISIN code is IT0003153415. Shares are also identified with an abbreviation (or ticker), which varies according to the market: the abbreviation for Snam shares listed on the Italian Stock Exchange is Snam. According to the different financial agencies (Reuters, Bloomberg), the suffix of the abbreviation can change, according to the following terms:

    Agency Snam abbreviation
    Reuters SRG.MI
    Bloomberg SRG IM
     

  • Which is your shareholding structure?

    At April 2022 Snam S.p.A. share capital amounted to 2,735,670,475.56 euro, represented by 3,360,857,809 ordinary shares without indication of nominal value. According to the shareholder register and other available information, CDP Reti held 31.4% of the company’s share capital, Romano Minozzi 7.5%, Bank of Italy 1.4%, Snam held treasury shares for 0.3%.

  • Dividend policy

    Snam confirms its commitment to guarantee to shareholders an attractive and sustainable remuneration and the payment of an interim dividend. The growth of the dividend per share of 5% until 2022 is confirmed, minimum growth of 2.5% in 2022-2024 extended to 2025. Snam expects that in 2022 an overall divided of 0.2620 euros per share will be distributed on full year 2021 results (of which 40% as an interim dividend with payment in January 2022 as resolved by the Board of Directors last November 3rd and the remaining 60% as a balance with payment in June, to be submitted to the Shareholders' Meeting that will approve the 2021 financial statements).

     
  • What is the taxation on dividend?

    Dividends, distributed by Snam S.p.A to shareholders of ordinary shares, are paid and taxed by the intermediary, applying a withholding tax, as follows:
     
     dividends received by Italian residents, for tax purposes, are taxed by a withholding tax of 26%, since July 1st 2014.
     dividends received by non-Italian residents are taxed by a withholding tax of 26%. In order to avoid the double taxation, Double Tax Treaties between Italy and the States of residence of foreign shareholders may provide, upon request by the tax payer, the right to be refunded by the source country of any paid tax, in case it exceeds the amount established by the agreement, or, sometimes, the right to have the expected benefit immediately applied, already when the tax is deducted.
    For any further information, visit the website of Italian Fiscal Revenue www.agenziaentrate.gov.it.

OPERATIONAL FINANCIAL INFORMATIONS

  • What’s Snam capex plan?

    Snam foresees investments of 8.1 billion euros 700 million euros more than 7.4 billion euros of the 2020-2024 plan. The plan includes the maintenance, upgrade and development of its infrastructure, net zero investments and the acceleration of the energy transition. Investments aligned to the European taxonomy account for 47% of the total (an increase compared to 40% in the previous plan). Regulated activities are substantially in line with the previous plan even though with a different mix.

  • What is the natural gas demand in Italy?

    Gas demand in Italy in 2021 was 76.25 billion cubic metres, up 6.9%, an increase of 4.94 billion cubic metres compared to 2020, which had seen a decline due to the restrictive measures put in place to contain the Covid-19 contagion. More specifically, the growth in gas demand is attributable: to the residential and tertiary sector (+2.03 billion cubic metres; +7.4%) due to the colder temperatures than in 2020 and the recovery of consumption impacted by the lockdown measures implemented in 2020; the industrial sector (+1.70 billion cubic metres, of which approximately 0.7 billion cubic metres concentrated in March and April; +10.4%) by virtue of a recovery in industrial production after the sharp drop suffered last year, following the lockdown measures in March and April to contain COVID-19 contagions; thermoelectric sector (+1.53 billion cubic metres; +6.1%) resulting from an increase in electricity demand compared to 2020, as well as by the greater use of natural gas in electricity generation. 

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updated
24 May 2021 - 09:56 CEST