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Snam Rete Gas: 273 million euro net profit for half year as of June 30, 2004 (138 for the second quarter) The Board of Directors approved stock options and stock grant plans for fiscal year 2004

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Today Snam Rete Gas Board of Directors has approved the second quarter figures and examined the Report as at June 30, 2004, closing with net profit of 273 million euro, with an increase of 14 million euro (+5,4%) compared to the first half 2003.
The Board of Directors has also approved the Stock Option and Stock Grant Plan for the year 2004 and has resolved a share capital increase in service of the Stock Option Plan up to the maximum extent of 677,000 euro, with the issue of a maximum of 677,000 dividend bearing ordinary shares, par value of 1 euro each. Stock Options will be offered to executives who have the most direct responsibility in terms of the company’s strategic and economic results at the price of 3.530 euro, the average of official prices recorded in the month preceding the today’s date on the Mercato Telematico Azionario. Underwriting rights may be exercised over the five-year period beginning three years after the assignment of the options.

REPORT AS AT JUNE 30 TH, 2004

Operating performance

Gas volumes injected into the national network in the first half 2004 (41.84 billion cubic metres) increase by 1.93 billion cubic metres, equal to 4.8% growth compared to last year same period. This increase is determined by higher consumption for power generation, due to some combined-cycle power stations entered into operation, and by industrial consumption increase.

First half gas demand (42.9 billion cubic metres) rises by 3.6%.

 

Revenues

Million euro

2nd Quarter

 

1st Half

2003

2004

Change

 

2003

2004

Change

419

427

8

TRASMISSION

864

874

10

12

9

(3)

REGASIFICATION

22

17

(5)

431

436

5

REVENUES FROM REGULATED ACTIVITIES

886

891

5

4

3

(1)

OTHER REVENUES FROM ORDINARY ACTIVITIES

8

6

(2)

4

3

(1)

REVENUES FROM NON REGULATED ACTIVITIES

8

6

(2)

435

439

4

TOTAL REVENUES FROM ORDINARY ACTIVITIES

894

897

3

3

18

15

OTHER REVENUES AND INCOME

3

19

16

438

457

19

TOTAL REVENUES

897

916

19

 

IRevenues from regulated activities (891 million euro) increase by 5 million euro (+0.6%) on the same period of 2003. Transmission revenues growth (10 million euro) is due to new development investments and to higher volumes injected (+21 million euro), partially offset by lower pass-through revenues for transmission services invoiced on behalf of third parties (-11 million euro). Excluding transmission revenue components with cost counter-items, transmission revenue growth is 2.5%.
Other revenues and income (19 million euro) increased by 16 million euro mainly due to the reimbursement of the first instalment of the environmental tax (11 million euro) by Sicilian Region.

Operating costs incurred in first half (182 million euro) increase by 10 million euro, compared to first half 2003, mainly due to variable cost growth (+9 million euro) for higher volumes in natural gas employed in compressor stations.
Controllable fixed costs cut continues (-1 million euro), with an external costs decrease
(-5 million euro) higher than the rise in the cost of labour relating to contractual renewals (+4 million).

 

Income Statement

Million euro

2nd Quarter

 

1st Half

2003

2004

Var.

 

2003

2004

Var.

435

439

4

REVENUE FROM ORDINARY ACTIVITIES

894

897

3

3

18

15

OTHER REVENUE AND INCOME

3

19

16

438

457

19

TOTAL REVENUE

897

916

19

(76)

(89)

(13)

OPERATING COSTS

(172)

(182)

(10)

362

368

6

GROSS OPERATING MARGIN

725

734

9

(117)

(117)

0

DEPRECIATION & AMORTIZATION

(232)

(234)

(2)

245

251

6

OPERATING PROFIT

493

500

7

(31)

(27)

4

NET FINANCIAL INCOME (EXPENSES)

(66)

(55)

11

214

224

10

INCOME BEFORE EXTRAORDINARY ITEMS AND TAXES

427

445

18

3

0

(3)

NET EXTRAORDINARY INCOME (EXPENSES)

1

(1)

(2)

217

224

7

PRE-TAX INCOME

428

444

16

(85)

(86)

(1)

INCOME TAXES

(169)

(171)

(2)

132

138

6

NET PROFIT

259

273

14

 

Net Profit (273 million euro) shows a 14 million euro growth (+5,4%) due to operating profit increase (7 million euro) and lower net financial charges (11 million euro), as a result of a lower level of average net debt and interest rates, partially offset by extraordinary expenses increase (2 million euro) and higher income tax (2 million euro). Second quarter net profit is 138 million euro, with a 4,5% increase on the second quarter of 2003.

 

Balance sheet

Million euro

31/03/2004

 

31/12/2003

30/06/2004

Var.

9.303

TANGIBLE FIXED ASSETS

9.292

9.316

24

88

INTANGIBLE FIXED ASSET

89

89

0

(137)

NET DEBT RELATED TO INVESTMENT (173)

(156)

17

9.254

FIXED ASSET

9.208

9.249

41

(467)

NET WORKING CAPITAL

(386)

(433)

(47)

(20)

EMPLOYEES’ SEVERENCE INDEMNITY (19)

(21)

(2)

8.767

NET CAPITAL EMPLOYED

8.803

8.795

(8)

5.818

SHAREHOLDERS’ EQUITY

5.683

5.565

(118)

2.949

NET FINANCIAL DEBT

3.120

3.230

110

8.767

FINANCING

8.803

8.795

(8)

 

Net capital employed (8,795 million euro) decreases by 8 million euro compared to December 31st 2003. Working capital reduction, mainly due to the growth of deferred tax fund, is almost completely counterbalanced by fixed assets increase.

Investments, in the first six months of 2004, amount to 276 million euro (+50% compared with first half 2003), of which 201 million euro are referred to transmission infrastructure development and 75 million euro are referred both to efficiency and safety projects for existing plants and to information technology development projects.

This press release and the full text of the (unaudited) quarterly report as at June 30, 2004 are available on the site www.snamretegas.it
On the web site is also available the presentation which will be showed by the management to financial analysts during a conference call.

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updated
05 August 2016 - 16:17 CEST