Snam Rete Gas presents its 2009-2012 Business Plan
- Investment of € 4.3 billion to develop the transportation system
- Average annual increase of 5% in the regulated asset base
- Solid capital structure preserved for the medium to long term
- 2008 DPS of € 0.23 (+€ 0.02 on 2007)
- Attractive, sustainable shareholder returns in coming years.
San Donato Milanese, 12 February 2009 – Snam Rete Gas CEO, Carlo Malacarne, tomorrow will present to the financial community the preliminary 2008 results and the 2009-2012 business plan approved today by the Company’s Board of Directors chaired by Alberto Meomartini.
|“ Snam Rete Gas’ strategy is focused on developing the gas transportation network to meet rising demand and to improve flexibility and security of the gas system. We have invested more than € 1 billion in 2008 and plan to invest €4.3 billion over the next four years. We remain committed to maximising operational efficiency, to preserving a solid capital structure and to delivering attractive shareholder returns as the company continues to grow. �? Snam Rete Gas CEO, Carlo Malacarne, said.|
The key strategic guidelines for the next four years are:
Development of the transportation network
Snam Rete Gas is focused on developing the transportation network coherent with a forecasted increase in gas demand of around 2% yearly in the medium to long term, despite the current economic downturn and with the need of increasing flexibility and security of the gas system in Italy.
The € 4.3 billion four year investment plan, € 1 billion of which will be spent in 2009, is in line with the previous investment plan, and confirms the projects already identified. The completion of these projects will entail annual investment of around € 1 billion through the period 2013-2015.
Based on the current regulatory framework, more than 90% of the investment is expected to be remunerated with a premium over the base return. In particular approximately 60% of the investment is expected to be remunerated with a 3% premium for a period of 10 to 15 years.
The Company’s estimated Regulated Asset Base (RAB) at the end of 2008 is approximately € 12,8 billion. Completion of the scheduled investment covered by the 2009-2012 business plan will lead to an increase in RAB of approximately 5% annually until 2012 assuming a 2% yearly inflation index, and continuity in the regulatory framework.
In 2008 Snam Rete Gas has achieved a further operating efficiency target, reporting a significant 16% decrease in controllable fixed costs in real terms during the second regulatory period.
Given the increase in the network infrastructure planned in the following years, the Company confirms its commitment to pursue operational efficiencies.
The Company confirms its commitment to preserve a strong and solid balance sheet in the medium to long term and to maintain an average leverage of around 50% in terms of Debt on RAB in the 2009-2012 period. Snam Rete Gas also confirms its intention to keep fixed-rate debt in a range of 50-60% of the total debt and medium/long term debt at around 80% of the total debt. The Company has no refinancing needs in 2009.
The Board of Directors intends to propose to the next shareholders meeting the distribution of a dividend of € 0.23 per share for 2008 (+9.5% on 2007), € 0.09 of which was already distributed as interim dividend in October 2008. The remaining € 0.14 per share will be payable from 21 May 2009 (ex dividend date 18 May 2009).
The Company confirms its commitment to deliver attractive and sustainable shareholder returns in 2009 and in the following years.
Snam Rete Gas’s Chief Financial Officer, Antonio Paccioretti, in his position as manager
responsible for the preparation of financial reports, certifies pursuant to paragraph 2, article
154-bis of the Legislative Decree n. 58/1998, that data and information disclosures in this press
release correspond to the Company’s evidence and accounting books and entries.
Documentation for the Analyst Presentation will be available on line at the Company’s website www.snamretegas.it, in the Investor Relations section, once this Presentation starts. A press conference will also be held after presentation to the analysts.
Snam Rete Gas Investor Relations
Tel: +39.02.520.67272 - Fax: +39.02.520.67650
Snam Rete Gas External Relations
Tel: +39 02 520.67691 - Fax +39.02.520.69227
Eni Press Office
Tel: +39 02.52031875 – +39 06.5982398
05 August 2016 - 16:18 CEST