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Snam Rete Gas presents its 2009-2012 Business Plan

Price sensitive
 
  • 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
  • Dividend policy:
    • 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.

 

Operating efficiency

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.

 

Capital Structure

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.

 

Dividend policy

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.  

Disclaimer
This press release includes forward-looking statements. Such statements by their very nature are subject to risk and uncertainty as they depend on the fact that certain events and developments will take place. The actual results may differ from those communicated due to different reasons, such as foreseeable trends in demand, offer and natural gas prices, general macro-economic conditions, the effect of new energy and environment legislation, the successful development and implementation of new technologies, changes in the stakeholders’ expectations and other changes in business conditions.

 

Background
Snam Rete Gas is the market leader of the Italian natural gas transportation and dispatching sector. It has been designing, constructing and monitoring a network of more than 31,000 kilometres of pipeline, with 11 compression stations, eight supervision units and 55 maintenance centres for sixty years. It is the only Italian operator active in the regasification of liquefied natural gas (LNG).
It transported over 85 billion cubic metres of gas in 2008 on behalf of approximately 73 shippers.
It has been listed on the Milan stock exchange since December 2001 and has a current market capitalisation of approximately € 8 billion.

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.

Company Contacts:

Snam Rete Gas Investor Relations
Tel: +39.02.520.67272 - Fax: +39.02.520.67650
e-mail: investor.relations@snamretegas.it

 

Snam Rete Gas External Relations

Tel: +39 02 520.67691 - Fax +39.02.520.69227

e-mail: relazioni.esterne@snamretegas.it

 

Eni Press Office
Tel: +39 02.52031875 – +39 06.5982398
e-mail: ufficio.stampa@eni.it

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05 August 2016 - 16:18 CEST