Snam announces results for the first nine months and the third quarter of 2013
30
Oct
San Donato Milanese, 30 October 2013 – At yesterday's meeting chaired by Lorenzo Bini Smaghi, the Snam Board of Directors approved the consolidated results for the first nine months and the third quarter of 2013 [1] (unaudited).
Financial highlights
·
Total revenue: €2,633 million
[2]
(+3.8%)
·
EBITDA: €2,083 million (+2.5%)
·
EBIT: €1,516 million, in line with the first nine months of 2012
·
Net profit: €674 million (+31.4%)
·
Cash flow from operating activities: +€1,480 million (+144.2%)
Operating highlights
·
Gas injected into the transportation network: 50.34 billion cubic metres (-12.4%)
·
Number of active meters: 5.915 million (+0.4%)
·
Available storage capacity: 11.4 billion cubic metres (+6.5%)
Significant events
·
Completed on 30 July 2013 the acquisition from Total of TIGF (Transport et Infrastructures Gaz
France), a gas transportation and storage company in the south-west of France, for a total of €597
million
·
The Group continues to optimise its financial structure
Carlo Malacarne, Snam CEO, made the following comments on the results:
"Thanks to our continuous commitment to operating and financial efficiency we have delivered
solid results in the first nine months of 2013, as demonstrated by the increase of 2.5% in EBITDA
and of 31% in Net Profit. This performance has been achieved despite the impact of the ongoing
economic downturn and a lower volume of gas injected into the network.
We continue to invest with the aim of creating value for our shareholders, while preserving our
solid capital structure. We confirm our capex plan, which remains focused on strengthening Italian
gas infrastructure, and our objective to promote closer integration of the European networks�?.
Financial highlights
(€ million)
|
||||||||
Third quarter
|
|
First nine months
|
|
|
||||
2012
|
2013
|
|
2012
|
2013
|
Change
|
% change
|
||
892
|
930
|
Total revenue
|
2,755
|
2,835
|
80
|
2.9
|
||
820
|
858
|
Total revenue net of the effects of IFRIC 12
|
2,536
|
2,633
|
97
|
3.8
|
||
802
|
848
|
|
- of which revenue from regulated activities (*)
|
|
2,488
|
2,603
|
115
|
4.6
|
218
|
243
|
Operating costs
|
723
|
752
|
29
|
4.0
|
||
146
|
171
|
Operating costs net of the effects of IFRIC 12
|
504
|
550
|
46
|
9.1
|
||
499
|
496
|
EBIT
|
1,512
|
1,516
|
4
|
0.3
|
||
5
|
212
|
Net profit (**)
|
513
|
674
|
161
|
31.4
|
||
218
|
212
|
Adjusted net profit (**) (***)
|
726
|
674
|
(52)
|
(7.2)
|
||
0.148
|
0.147
|
EBIT per share
(****)
|
(€)
|
0.448
|
0.449
|
0.001
|
0.1
|
|
0.065
|
0.062
|
Adjusted net profit per share (****)
|
(€)
|
0.215
|
0.199
|
(0.016)
|
(7.4)
|
|
(8)
|
561
|
Net cash flow from operating activities
|
606
|
1,480
|
874
|
|||
276
|
285
|
Investments
|
800
|
775
|
(25.0)
|
(3.1)
|
||
3,378.7
|
3,379.7
|
Number of shares outstanding at the end of the
period
|
(millions)
|
3,378.7
|
3,379.7
|
1.0
|
||
3,378.7
|
3,379.7
|
Average number of shares outstanding during the
period
|
(millions)
|
3,378.7
|
3,379.3
|
0.6
|
||
|
|
(*) Revenue from regulated activities in the distribution segment in
the first nine months of 2013 includes capital gains on the sale of plants to municipalities
granting distribution concessions. Accordingly, the corresponding values for 2012 have been
reclassified from “Revenue from non-regulated activities�?.
(**) Net profit is attributable to Snam.
(***) Adjusted net profit for the first nine months and the third quarter of 2012
excludes the financial expense (€213 million, net of the related tax effect) relating to the early
extinguishment of 12 interest rate swap (IRS) contracts between Snam and its subsidiaries and Eni.
This extinguishment gives rise to the contractual provisions in the event that Eni loses control of
Snam.
(****) Calculated based on the average number of shares outstanding during the
period.
EBIT
EBIT totalled €1,516 million in the first nine months of 2013, in line with the same period in
2012 (+€4 million; +0.3%). Third-quarter EBIT in 2013 was down slightly (-€3 million; -0.6%)
compared with the same period in 2012 to €496 million.
The increase in revenue from regulated activities, which was driven by all business segments,
was partly offset by higher amortisation and depreciation and by higher operating costs, primarily
in the distribution segment.
EBIT reflects the robust performance of the storage segment (+€30 million, or +14.4%, in the
first nine months; +€16 million, or +32.0%, in the third quarter) and an improvement in the
transportation segment (+€28 million, or +3.2%, in the first nine months; +€24 million, or +8.5%,
in the third quarter), despite lower gas demand. This was partly offset by a decline in EBIT from
the distribution segment
[3] (-€43 million, or -10.2%, in the
first nine months; -€36 million, or -22.1%, in the third quarter).
Net profit
Net profit totalled €674 million in the first nine months of 2013, an increase of €161 million
(+31.4%) on the corresponding period of the previous year. Compared with adjusted net profit for
the first nine months of 2012, net profit decreased by €52 million (-7.2%). The reduction was due
essentially to higher net financial expense (-€66 million), partly offset by lower income taxes
(+€21 million) primarily as a result of lower pre-tax profit. Excluding the effects of the early
extinguishment, in April 2013, of a €1.5 billion term loan undertaken by Snam in July 2012, net
financial expense rose by €35 million. This increase was due primarily to higher average debt
during the period.
Net profit totalled €212 million in the third quarter of 2013, up by €207 million on the same
period in the previous year. Compared with adjusted net profit for the third quarter of 2012, net
profit decreased by €6 million (-2.8%).
Investments
Investments in the first nine months of 2013 totalled €775 million (€285 million in the third
quarter of 2013). Incentivised investments
[4]represented around 67% of total
investments.
Net financial debt
Net financial debt was €12,877 million at 30 September 2013
[5], compared with €12,398 million at
31 December 2012.
The positive cash flow from operating activities (€1,480 million) enabled the Group to fully
cover its financial requirements for net investments and for developing foreign activities (€1,456
million in total). After payment to shareholders of the balance of the 2012 dividend (€507
million), net financial debt was €479 million higher than on 31 December 2012.
Net financial debt increased by €317 million during the third quarter of 2013.
Operating highlights
(a)
Third quarter
|
|
First nine months
|
|
|
||
2012
|
2013
|
|
2012
|
2013
|
Change
|
% change
|
|
|
|
|
|
|
|
Natural gas transportation (b)
|
|
|
|
|||
16.60
|
15.85
|
Natural gas injected into the national gas transportation network (billions of
cubic metres) (c)
|
57.45
|
50.34
|
(7.11)
|
(12.4)
|
32,154
|
32,277
|
Transportation network (kilometres in use)
|
32,154
|
32,277
|
123
|
0.4
|
864.1
|
866.9
|
Installed power in the compression stations (MW)
|
864.1
|
866.9
|
2.8
|
0.3
|
|
Liquefied Natural Gas (LNG) regasification (b)
|
|
||||
0.21
|
LNG regasification (billions of cubic metres)
|
1.00
|
0.05
|
(0.95)
|
(95.0)
|
|
|
|
Natural gas storage (b)
|
|
|
||
10.7
|
11.4
|
Available storage capacity (billions of cubic metres) (d)
|
10.7
|
11.4
|
0.7
|
6.5
|
3.19
|
4.08
|
Natural gas passed through the storage system (billions of cubic metres)
|
12.86
|
15.32
|
2.46
|
19.1
|
|
|
Natural gas distribution
|
|
|
|
|
5.890
|
5.915
|
Active meters (millions)
|
5.890
|
5.915
|
0.025
|
0.4
|
1,434
|
1,435
|
Gas distribution concessions (number)
|
1,434
|
1,435
|
1
|
0.1
|
52,478
|
52,766
|
Distribution network (kilometres) (e)
|
52,478
|
52,766
|
288
|
0.5
|
|
|
|
||||
6,034
|
6,018
|
Employees in service at end of period (number) (f)
|
6,034
|
6,018
|
(16)
|
(0.3)
|
|
by business segment:
|
|
||||
1,975
|
1,947
|
- Transportation
|
1,975
|
1,947
|
(28)
|
(1.4)
|
79
|
77
|
- Regasification
|
79
|
77
|
(2)
|
(2.5)
|
295
|
298
|
- Storage
|
295
|
298
|
3
|
1.0
|
3,014
|
2,999
|
- Distribution
|
3,014
|
2,999
|
(15)
|
(0.5)
|
671
|
697
|
- Corporate
|
671
|
697
|
26
|
3.9
|
(a) The changes indicated in the table, as well as those below in this press
release, must be considered changes from the first nine months of 2012 to the first nine months of
2013. Percentage changes, unless otherwise specified, are calculated in relation to the data
indicated in the related tables.
(b) Gas volumes are expressed in standard cubic metres (SCM) with an average higher
heating value (HHV) of 38.1 and 39.3 MJ/SCM respectively for the businesses of natural gas
transportation and regasification and natural gas storage.
(c) The figures for the first nine months of 2013 are correct as at 2 October 2013. The
figures for the first nine months and the third quarter of 2012 are in line with those published in
the national transportation network report.
(d) Working gas capacity for modulation, mining and balancing services. Available
capacity at 30 September 2013 is the capacity declared to the Electricity and Gas Authority at the
start of the 2013-2014 thermal year, pursuant to Resolution ARG/gas 119/10. The figures for 2012
refer to the available and transferable capacity declared to the Electricity and Gas Authority in
relation to the 2012-2013 thermal year.
(e) This figure refers to the kilometres of network operated by
Italgas.
(f) Fully consolidated companies.
Natural gas injected into the national gas transportation network
A total of 50.34 billion cubic metres of natural gas was injected into the national gas
transportation network during the first nine months of 2013, down by 7.11 billion cubic metres
(-12.4%) on the same period of the previous year (15.85 billion cubic metres in the third quarter;
-4.5%). The reduction was due to lower demand for natural gas in Italy (-8.2%), owing primarily to
lower consumption in the thermoelectric sector, which was partly offset by higher consumption in
the residential and tertiary sectors, and to lower net injections from storage.
Liquefied Natural Gas (LNG) regasification
During the first nine months of 2013, the LNG terminal at Panigaglia (SP) regasified 0.05
billion cubic metres of natural gas (1.00 billion cubic metres in the first nine months of 2012),
unloading one LNG tanker (28 in the first nine months of 2012).
The reduction in regasified volumes is due mainly to the global demand for LNG, which has
risen sharply, particularly in the Far East.
Natural gas storage
In total, 15.32 billion cubic metres of natural gas passed through the storage system in the
first nine months of 2013, an increase of 2.46 billion cubic metres (+19.1%) on the same period of
the previous year. This increase was due to higher withdrawals (+2.43 billion cubic metres; +49.3%)
as a result of weather conditions.
A total of 4.08 billion cubic metres of gas was moved through the storage system in the third
quarter of 2013, up by 0.89 billion cubic metres (+27.9%) on the same period of the previous year.
The increase was due entirely to more injections into the
system.
Natural gas distribution
At 30 September 2013, Snam held a gas distribution concession in 1,435 municipalities
(unchanged from 31 December 2012), of which 1,337 had operational networks and 98 had networks to
be completed and/or constructed. At 30 September 2013, the number of active meters located at
end-user gas redelivery points (households, businesses, etc.) stood at 5.915 million (5.890 million
at 30 September 2012).
Main events
International growth
Completion of the TIGF acquisition
Following an agreement signed on 5 April 2013 with the Total group, on 30 July 2013 TIGF
Holding, which is controlled by Snam (45%), Singapore sovereign wealth fund GIC (35%) and EDF (20%,
through its fund dedicated to the liabilities arising from the dismantling of nuclear reactors),
acquired (through TIGF Investissements, a wholly owned subsidiary of TIGF Holding) the entire share
capital of TIGF, a gas transportation and storage company in the south-west of France. TIGF
Investissements paid Total around €1.6 billion for the equity acquisition in a deal with an
enterprise value of around €2.4 billion. Snam's total consideration for its 45% stake in TIGF
Holding was €597 million.
Euro Medium Term Notes (EMTN) programme
As part of the EMTN programme, Snam launched two taps of existing fixed-rate bonds on 9
September 2013, for a total incremental amount of €750 million, of which €250 million related to
the four-year bond maturing on 30 July 2017 with a fixed-rate annual coupon of 2.375% and €500
million related to the 6.5-year bond maturing on 13 February 2020 with a fixed-rate annual coupon
of 3.5%.
The private placement of a €70 million five-year bond maturing on 10 September 2018, with a
fixed-rate annual coupon of 2.625%, was completed on 10 September 2013.
October 2013 also saw the completion of two private placements: (i) a €300 million three-year
bond maturing on 17 October 2016 with a variable quarterly coupon equal to Euribor plus 85 bps; and
(ii) a JPY 10 billion six-year bond maturing on 25 October 2019 with a fixed-rate half-yearly
coupon of 1.115%, converted fully into euros (approximately €75 million) by a hedging
derivative.
These operations enabled the Group to continue the debt structure optimisation programme it
began in the first half of 2013, significantly reducing cost and exposure to interest-rate
fluctuations while extending the average length of borrowing.
The Board of Directors' decision on 11 June 2013 to extend the EMTN programme enables the
Group to place a further €1.3 billion with European institutional investors by 30 June 2014.
European Investment Bank (EIB) loans
On 24 October 2013, the EIB entered into two loan agreements with Snam, worth €300 million and
€65 million respectively, to fund projects at Italgas and Snam Rete Gas. The two loans, which are
in addition to the €283 million loan granted to Stogit in August, are part of the Snam Group's
policy to optimise its financial structure given that they provide longer repayment schedules (up
to 20 years) and more favourable rates than bonds and bank loans.
Outlook
Management’s priorities are to expand the Group’s business by constructing significant new gas
infrastructure in Italy and assessing strategic growth opportunities in Europe.
Gas demand
On the basis of information currently available, natural gas demand on the Italian market at
the end of 2013 will be down on 2012, due mainly to lower consumption in the thermoelectric
sector.
Investments
The major investment programme for the four-year period 2013-2016 is proceeding according to
schedule, with overall projected expenditure of approximately €6.2 billion on a consolidated
basis.
Efficiency
Snam reaffirms its commitment to maximising the value creation through both operating
efficiency and an efficient capital structure.
***
This press release on the consolidated results for the first nine months and the third quarter
of 2013 (unaudited) represents the interim directors' report pursuant to Article 154-
ter of the Consolidated Finance Act (TUF).
The financial statements were compiled in accordance with the recognition and measurement
criteria established by the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) and adopted by the European Commission under
Article 6 of Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July
2002.
The income statement relates to the first nine months and the third quarter of 2012 and to the
first nine months and the third quarter of 2013, while the balance sheet refers to 31 December 2012
and 30 September 2013. The accounting statements are presented in the same format as those included
in the interim directors' report in the half-year report and the directors' report in the annual
report.
The recognition and measurement criteria adopted for the preparation of the interim directors’
report at 30 September 2013 are the same as those used for the 2012 annual report, which should be
referred to for a description thereof, except for the international accounting standards that came
into force on 1 January 2013, as described in the “Recently issued IFRS�? section of the 2012
annual report. There was no effect from the application of these standards, except for the changes
to IAS 19 “Employee Benefits�? approved by the European Commission through Regulation (EU) No
475/2012 of 5 June 2012. These new measures, effective as of 1 January 2013 and to be applied
retrospectively, resulted in the restatement of the balance sheet items as at 1 January 2012 and 31
December 2012 and of the 2012 statement of comprehensive income.
In relation to the Snam Group’s existing defined-benefit plans (severance pay, or TFR, and the
supplementary healthcare provision for company executives of Eni, or FISDE), the restatement of
these balances was as follows: (i) as at 1 January 2012, an increase of €2 million in employee
benefit liabilities and a reduction of €1 million in shareholders’ equity, net of tax effect; and
(ii) as at 31 December 2012, an increase of €21 million in employee benefit liabilities and a
reduction of €14 million in shareholders’ equity, net of tax effect.
The effects of these changes are attributable mainly to the recognition of unrecognised
actuarial gains and losses, which are recorded in other components of comprehensive income.
The consolidation scope at 30 September 2013 was the same as on 30 September 2012 and 31
December 2012.
Given their size, amounts are expressed in millions of euro.
Pursuant to Article 154-bis
, paragraph 2 of the TUF, the CFO, Antonio Paccioretti, declares that the accounting information
included in this press release corresponds to documents, accounting ledgers and other
records.
Disclaimer
This press release includes forward-looking statements, especially in the “Outlook�? section,
relating to: natural gas demand, investment plans, future operating performance and project
execution. Such statements are, by their very nature, subject to risk and uncertainty as they
depend on whether future events and developments take place. The actual results may therefore
differ from those forecast as a result of several factors, including: foreseeable trends in natural
gas demand, supply and price, actual operating performance, general macroeconomic conditions,
geopolitical factors such as international conflicts, the effect of new energy and environmental
legislation, the successful development and implementation of new technologies, changes in
stakeholders' expectations and other changes in business conditions.
A conference call will take place at 14:00 today, 30 October 2013, to present the results of
the first nine months and the third quarter of 2013 to investors and financial analysts. An audio
webcast of the presentation will be available on the Company’s website (www.snam.it). In conjunction with the start of the
conference call, the presentation support material will also be made available in the “Investor
Relations/Presentations�? section of the website.
Summary of results for the first nine months and the third quarter of 2013
INCOME STATEMENT
|
|
(€ million)
|
|||||||
Third quarter
|
|
First nine months
|
|
|
|||||
2012
|
2013
|
|
2012
|
2013
|
Change
|
% change
|
|||
856
|
905
|
|
Core business revenue
|
2,647
|
2,744
|
97
|
3.7
|
||
36
|
25
|
|
Other revenue and income
|
108
|
91
|
(17)
|
(15.7)
|
||
892
|
930
|
|
Total revenue
|
|
2,755
|
2,835
|
80
|
2.9
|
|
820
|
858
|
|
Total revenue net of the effects of IFRIC 12 (*)
|
|
2,536
|
2,633
|
97
|
3.8
|
|
(218)
|
(243)
|
|
Operating costs
|
(723)
|
(752)
|
(29)
|
4.0
|
||
(146)
|
(171)
|
|
Operating costs net of the effects of IFRIC 12 (*)
|
(504)
|
(550)
|
(46)
|
9.1
|
||
674
|
687
|
|
EBITDA
|
|
2,032
|
2,083
|
51
|
2.5
|
|
(175)
|
(191)
|
|
Amortisation, depreciation and impairment losses
|
(520)
|
(567)
|
(47)
|
9.0
|
||
499
|
496
|
|
EBIT
|
|
1,512
|
1,516
|
4
|
0.3
|
|
(465)
|
(101)
|
|
Net financial expense
|
(632)
|
(363)
|
269
|
(42.6)
|
||
15
|
(7)
|
|
Net income (expense) from equity investments
|
39
|
28
|
(11)
|
(28.2)
|
||
49
|
388
|
|
Profit before taxes
|
|
919
|
1,181
|
262
|
28.5
|
|
(44)
|
(176)
|
|
Income taxes
|
(406)
|
(507)
|
(101)
|
24.9
|
||
5
|
212
|
|
Net profit (**)
|
|
513
|
674
|
161
|
31.4
|
|
218
|
212
|
|
Adjusted net profit (**)
|
|
726
|
674
|
(52)
|
(7.2)
|
|
|
|||||||||
(*) The adoption of international accounting standard IFRIC 12 “Service Concession
Arrangements�?, applicable since 1 January 2010, has had no effect on the consolidated results,
except for the recognition, in equal measure, of revenue and costs relating to the construction and
upgrading of distribution infrastructure for €219 million and €202 million in the first nine months
of 2012 and 2013 respectively (€72 million in the third quarters of 2012 and 2013).
(**) Net profit is attributable to Snam.
EBIT totalled €1,516 million in the first nine months of 2013, in line with the same period
of 2012 (+€4 million; +0.3%). Third-quarter EBIT in 2013 was down slightly (-€3 million; -0.6%)
compared with the same period in 2012 to €496 million.
Higher revenue (+€71 million in the first nine months, net of components offset in costs; +€25
million in the third quarter), owing to the positive contribution from regulated activities across
all the business segments (+€80 million in the first nine months; +€24 million in the third
quarter), were offset by higher amortisation and depreciation (-€47 million in the first nine
months; -€16 million in the third quarter) and by higher operating costs (-€20 million, net of
components offset in revenue; -€12 million in the third quarter). The increase in amortisation and
depreciation was due in particular to new infrastructure becoming operational and to the effects of
the costs incurred for the award of the concession for Rome, where Italgas no longer owns the
assets but is licensed to use them (-€15 million). These costs, net of the reimbursement as
determined by the agreement with the Municipality of Rome, are amortised over the duration of the
concession (12 years).
EBIT reflects the robust performance of the storage segment (+€30 million, or +14.4%, in the
first nine months; +€16 million, or +32.0%, in the third quarter) and an improvement in the
transportation segment (+€28 million, or +3.2%, in the first nine months; +€24 million, or +8.5%,
in the third quarter), despite lower gas demand (-8.2%) and lower volumes of gas injected into the
network. This was partly offset by a fall in the distribution segment (-€43 million, or -10.2%, in
the first nine months; -€36 million, or -22.1%, in the third quarter).
Net profit totalled €674 million in the first nine months of 2013, up by €161 million
(+31.4%) compared with the first nine months of 2012 (+€207 million in the third quarter). The
increase was due essentially to lower net financial expense (+€269 million in the first nine
months; +€364 million in the third quarter), partly offset by higher income taxes (-€101 million in
the first nine months; -€132 million in the third quarter) as a result of higher pre-tax profit.
The reduction in net financial expense was due largely to the recognition in the third quarter of
2012 of the costs associated with the early extinguishment of IRS contracts between Snam and its
subsidiaries and Eni (€335 million; €213 million net of the related tax effect), giving rise to the
contractual provisions in the event that Eni loses control of Snam.
Net profitdecreased by €52 million (-7.2%) compared with the adjusted net profit in the first
nine months of 2012. This reduction was due essentially to higher net financial expense (-€66
million). Excluding the effects of the early extinguishment of a €1.5 billion term loan undertaken
by Snam in July 2012, net financial expense rose by €35 million. This increase was due primarily to
higher average debt during the period. Net profit also fell because of lower income from equity
investments (-€11 million) relating to the share of net profit for the period of equity-accounted
investments, with the value of Snam's stake in TIGF Holding affected by the costs incurred during
the acquisition of TIGF S.A. These factors were partly offset by lower income taxes (+€21 million)
owing primarily to a fall in pre-tax profit.
Net profit in the third quarter of 2013 was €212 million, down by €6 million (-2.8%) compared
with the adjusted net profit in the third quarter of 2012, owing primarily to lower income from
equity investments (-€22 million) and higher income taxes (-€10 million), the effects of which were
partly offset by lower net financial expense (+€29 million). The reduction in net financial expense
was attributable mainly to lower costs for the bridge loan undertaken in July 2012 and replaced by
successive bond issues in 2012, and to the optimisation of the Group's financial structure.
The tax rate was 42.9% (44.2% in the first nine months of 2012). This reduction was due
essentially to higher net financial expense in the first nine months of 2012,non-deductible for
regional production tax (IRAP) purposes.
The following information concerns the operating and financial performance of Snam's business
segments in the first nine months and the third quarter of 2013.
Information by business segment
Natural gas transportation
|
|
(€ million)
|
||||
Third quarter
|
First nine months
|
Change
|
% change
|
|||
2012
|
2013
|
2012
|
2013
|
|||
472
|
497
|
Core business revenue (*)
|
1,433
|
1,487
|
54
|
3.8
|
469
|
494
|
- of which natural gas transportation
|
1,423
|
1,477
|
54
|
3.8
|
90
|
94
|
Operating costs (*)
|
288
|
307
|
19
|
6.6
|
281
|
305
|
EBIT
|
870
|
898
|
28
|
3.2
|
149
|
156
|
Investments (*)
|
450
|
395
|
(55)
|
(12.2)
|
119
|
116
|
- of which with incentives
|
372
|
301
|
(71)
|
(19.1)
|
30
|
40
|
- of which without incentives
|
78
|
94
|
16
|
20.5
|
16.60
|
15.85
|
Natural gas injected into the national gas transportation network (billions of
cubic metres)
|
57.45
|
50.34
|
(7.11)
|
(12.4)
|
32,154
|
32,277
|
Transportation network (kilometres in use)
|
32,154
|
32,277
|
123
|
0.4
|
9,191
|
9,474
|
- of which national network
|
9,191
|
9,474
|
283
|
3.1
|
22,963
|
22,803
|
- of which regional network
|
22,963
|
22,803
|
(160)
|
(0.7)
|
|
|
(*) Before consolidation adjustments.
Results
Natural gas transportation revenue totalled €1,477 million in the first nine months of 2013,
an increase of €54 million (+3.8%) on the first nine months of 2012. Third-quarter natural gas
transportation revenue in 2013 amounted to €494 million, up by €25 million (+5.3%) on the third
quarter of 2012. The increase was mainly due to the contribution of investments made in 2011 (+€76
million in the first nine months; +€26 million in the third quarter), the effects of which were
partly offset by lower volumes of natural gas transported (-€23 million in the first nine months;
-€3 million in the third quarter) and by tariff updates (-€15 million in the first nine months; -€5
million in the third quarter). Higher revenue from components offset in costs (+€16 million in the
first nine months; +€5 million in the third quarter) also contributed to the increase in
transportation revenue.
EBIT
[6] totalled €898 million in the first
nine months of 2013, an increase of €28 million (+3.2%) compared with the same period of 2012.
Third-quarter EBIT in 2013 rose by €24 million (+8.5%) compared with the previous year to €305
million. Higher transportation revenue (+€38 million in the first nine months; +€20 million in the
third quarter) and lower operating costs (+€13 million in the first nine months; +€10 million in
the third quarter), owing mainly to changes in provisions for risks and charges, were partly offset
by higher amortisation and depreciation (-€17 million in the first nine months; -€6 million in the
third quarter), primarily as a result of new infrastructure becoming operational.
Operating review
Natural gas injected into the national gas transportation network
[7]
|
(billions of m
3)
|
|||||||
Third quarter
|
First nine months
|
Change
|
% change
|
|||||
2012 (*)
|
2013
|
2012 (*)
|
2013
|
|||||
2.09
|
1.9
|
|
Domestic output
|
6.15
|
5.64
|
(0.51)
|
(8.3)
|
|
15.41
|
13.95
|
|
Imports (entry points)
|
51.30
|
44.70
|
(6.60)
|
(12.9)
|
|
5.20
|
6.97
|
Tarvisio
|
17.21
|
22.06
|
4.85
|
28.2
|
||
3.24
|
1.45
|
Mazara del Vallo
|
15.66
|
8.96
|
(6.70)
|
(42.8)
|
||
2.64
|
2.71
|
Gries Pass
|
7.93
|
4.86
|
(3.07)
|
(38.7)
|
||
1.52
|
1.61
|
Gela
|
4.69
|
4.65
|
(0.04)
|
(0.9)
|
||
1.25
|
1.2
|
Cavarzere (LNG)
|
4.66
|
4.11
|
(0.55)
|
(11.8)
|
||
0.21
|
0
|
Panigaglia (LNG)
|
1.00
|
0.05
|
(0.95)
|
(95.0)
|
||
0.04
|
0.01
|
Gorizia
|
0.15
|
0.01
|
(0.14)
|
(93.3)
|
||
16.60
|
15.85
|
|
|
57.45
|
50.34
|
(7.11)
|
(12.4)
|
|
(*) The data for 2012 have been aligned with those published in the national
transportation network report.
A total of 50.34 billion cubic metres of natural gas was injected into the national gas
transportation network during the first nine months of 2013, down by 7.11 billion cubic metres
(-12.4%) on the same period of the previous year (15.85 billion cubic metres in the third quarter;
-4.5%). The reduction was due to lower natural gas demand in Italy (-8.2%), owing primarily to
lower consumption in the thermoelectric sector (-20.9%) because of lower demand for electricity and
the increasing production of energy from renewable sources, and to lower consumption in the
industrial sector (-3.3%) as a result of a downturn in manufacturing, offset in part by higher
consumption in the residential and tertiary sectors (+1.1%). The considerable drop in net
injections from storage compared with the first nine months of 2012 (-2.59 billion cubic metres)
also contributed to the reduction.
Natural gas injected into the national network from domestic production fields or their
collection and treatment centres was 5.64 billion cubic metres, down by 0.51 billion cubic metres
(-8.3%) compared with the first nine months of 2012.
Imports decreased by 6.60 billion cubic metres (-12.9%) compared with the first nine months of
2012. The reduction was attributable mainly to lower volumes injected at the Mazara del Vallo
(-6.70 billion cubic metres; -42.8%) and Gries Pass (-3.07 billion cubic metres; -38.7%) entry
points, as a result of falling gas imports from northern Europe, and to lower volumes regasified at
the Panigaglia and Cavarzere terminals (-0.95 billion and -0.55 billion cubic metres respectively).
There was an increase in imports from the Tarvisio entry point (+4.85 billion cubic metres; +28.2%)
as a result of greater gas imports from Russia.
Investments
(€ million)
|
||||||
Third quarter
|
First nine months
|
Change
|
% change
|
|||
2012
|
2013
|
2012
|
2013
|
|||
91
|
84
|
Development
|
293
|
210
|
(83)
|
(28.3)
|
73
|
60
|
Investments with
3% incentive
|
233
|
147
|
(86)
|
(36.9)
|
18
|
24
|
Investments with
2% incentive
|
60
|
63
|
3
|
5.0
|
|
|
|
|
|||
58
|
72
|
Maintenance and other
|
157
|
185
|
28
|
17.8
|
28
|
32
|
Investments with
1% incentive
|
79
|
91
|
12
|
15.2
|
30
|
40
|
Investments with
no incentives
|
78
|
94
|
16
|
20.5
|
149
|
156
|
|
450
|
395
|
(55)
|
(12.2)
|
Investmentstotalled €395 million in the first nine months of 2013, a reduction of €55
million (-12.2%) compared with the first nine months of 2012.
Investments were classified in accordance with Resolution ARG/gas 184/09 of the Electricity
and Gas Authority, which identified various categories of projects with different incentive
levels.
A total of 76% of investments are expected to benefit from incentive-based returns.The
breakdown of investments by category for 2012 and 2013 will be submitted to the Electricity and Gas
Authority when it approves the tariff proposals for 2014 and 2015, and may differ from the
breakdown in the current regulatory period, which ends on 31 December 2013.
The main investments with
a 3% incentive (€147 million) were:
· as part of the upgrading of national
transportation infrastructure in the Po Valley (€85 million): (i) materials for and construction
work on the Zimella-Cervignano pipeline from Veneto to Lombardy; and (ii) continuation of
construction work on the Poggio Renatico-Cremona pipeline from Emilia-Romagna to Lombardy;
· as part of the upgrading of import
infrastructure in southern Italy (€29 million): renovation work on and materials for the Enna
station in Sicily;
· as part of the Northern Exports
initiative (€11 million): continuation of planning and materials for plants for the
Cervignano-Mortara pipeline and costs relating to the repositioning of pipes by Stogit for its new
station at Minerbio in Lombardy;
· the continuation of additional work on
the main line and materials for connection points for the Massafra-Biccari pipeline, as part of the
new transportation infrastructure project on the Adriatic coast (€11 million), in Puglia and
Basilicata.
The main investments with
a 2% incentive (€63 million) relate to a number of works to upgrade the network and to
connect to new regional and national redelivery points, including:
· the continuation of construction work
on natural gas pipelines and associated connections as part of the natural gas conversion project
in Calabria (€11 million);
· materials for the “Potenziamento
Gavi-Pietralavezzara�? pipeline in Piedmont (€7 million);
· the continuation of construction work
on the “Derivazione per Sapri�? pipeline in Campania (€4 million);
· the continuation of construction work
on the Monsummano-Lamporecchio pipeline in Tuscany (€3 million).
The investments with
a 1% incentive (€91 million) involved projects aimed at maintaining adequate safety and
quality levels at the plants, including:the provision of turbo compressors as part of the project
to replace/transform the Messina compression station in Sicily (€15 million) and compensation for
third parties (€17 million).
Investments without incentive(€94 million) included projects to replace assets and plants,
as well as projects relating to the implementation of new IT systems, the development of existing
ones and the purchase of other key operating assets.
Liquefied Natural Gas (LNG) regasification
(€ million)
|
|||||||
Third quarter
|
|
First nine months
|
Change
|
% change
|
|||
2012
|
2013
|
|
2012
|
2013
|
|||
10
|
7
|
|
Core business revenue (*) (**)
|
27
|
23
|
(4)
|
(14.8)
|
7
|
5
|
|
- of which LNG regasification revenue
|
18
|
17
|
(1)
|
(5.6)
|
5
|
4
|
|
Operating costs (**)
|
19
|
15
|
(4)
|
(21.1)
|
3
|
1
|
|
EBIT
|
5
|
4
|
(1)
|
(20.0)
|
1
|
2
|
|
Investments
|
1
|
3
|
2
|
|
0.21
|
|
|
Volumes of LNG regasified (billions of cubic metres)
|
1.00
|
0.05
|
(0.95)
|
(95.0)
|
5
|
|
|
Tanker loads (number)
|
28
|
1
|
(27)
|
(96.4)
|
|
|
|
(*) Core business revenue includes the recharging to customers of expenses relating
to natural gas transportation services provided by Snam Rete Gas S.p.A. For the purposes of the
consolidated financial statements, this revenue is eliminated, together with transportation costs,
within GNL Italia S.p.A. in order to represent the substance of the operation.
(**) Before consolidation adjustments.
Results
Revenue from LNG regasification amounted to €17 million, down by €1 million, or 5.6%,
compared with the first nine months of 2012 (-€2 million in the third quarter; -28.6%), and related
primarily to capacity fees
[8].
EBIT amounted to €4 million, down by €1 million compared with the first nine months of 2012
(-€2 million in the third quarter) due to lower revenue from regasification (-€1 million in the
first nine months; -€2 million in the third quarter).
Operating review
In the first nine months of 2013, the LNG terminal at Panigaglia (SP) regasified 0.05 billion
cubic metres of natural gas (1.00 billion cubic metres in the first nine months of 2012), unloading
one LNG tanker (compared with 28 in the first nine months of 2012).
The reduction in volumes regasified was due to the global trend in demand for LNG, which
resulted in particularly strong demand in the markets of the Far East, to the detriment of the
European market.
Regulation
Resolution 438/2013/R/gas
–
“Regulation criteria for liquefied natural gas regasification tariffs for the 2014-2017
period�?.
With this resolution, which was published on 9 October 2013, the Electricity and Gas Authority
defined the criteria for regasification service tariffs applicable in the fourth regulatory period
(1 January 2014 – 31 December 2017). For the purposes of determining the relevant revenues, the
mechanisms already in force for the third period were essentially confirmed. With regard to the
weighted average cost of capital (WACC), a rate of 7.3% in real terms, before tax, was set for
investments made up to 31 December 2013, and a rate of 8.3% was set for investments made after that
date (versus 7.6% in the third regulatory period). A revision of the WACC will also be introduced
halfway through the regulatory period via an update solely of the return from risk-free assets
(average of the April 2014-March 2015 period).
With regard to the tariff structure, 100% of the total revenue is allocated to the capacity
component (versus 90% to capacity and 10% to commodity in the third regulatory period). The tariffs
are updated using the “price cap�? method, applied exclusively to the component relating to
operating costs. The revenue component relating to the return and amortisation and depreciation is
updated on the basis of an annual recalculation of invested capital and additional revenues from
the incentives for investments realised in prior regulatory periods.
New investments made from the 2014 financial year onwards, and aimed at expanding the
regasification capacity of existing terminals by more than 30% or building new terminals, are
incentivised by means of a rate that is 2 percentage points higher than the base WACC, for 16
years.
The guarantee factor for covering revenue is set at 64% of total revenue.
Ministerial Decree 13/09/2013
–
Amendments to the emergency plan, as per Annex 2 of the Decree of 19 April 2013, relating to the
emergency plan to deal with unfavourable events for the natural gas system (Official Gazette No 232
of 3 October 2013).
With this decree, the Ministry of Economic Development introduced certain changes concerning
the rules for dispatching in emergency conditions and the security obligations of the national
natural gas system. Specifically, a “peak shaving�? measure was introduced in relation to the usage
of LNG stocks. This measure may be activated by using partially used regasification terminals or
dedicated LNG tanks. New measures were also introduced to increase gas imports via pipelines
connected directly to the Italian gas transportation network, as well as via regasification
terminals, including through contractual options for deferred deliveries.
Natural gas storage
(€ million)
|
|||||||
Third quarter
|
|
First nine months
|
Change
|
% change
|
|||
2012
|
2013
|
|
2012
|
2013
|
|||
82
|
110
|
|
Core business revenue (*) (**)
|
302
|
362
|
60
|
19.9
|
82
|
97
|
|
- of which natural gas storage
|
302
|
337
|
35
|
11.6
|
16
|
30
|
|
Operating costs (**)
|
46
|
76
|
30
|
65.2
|
50
|
66
|
|
EBIT
|
209
|
239
|
30
|
14.4
|
47
|
50
|
|
Investments
|
110
|
155
|
45
|
40.9
|
10
|
10
|
|
Concessions (number)
|
10
|
10
|
||
8
|
8
|
|
- of which operational (***)
|
8
|
8
|
|
|
3.19
|
4.08
|
|
Natural gas moved through the storage system
(billions of cubic metres) |
12.86
|
15.32
|
2.46
|
19.1
|
3.19
|
4.08
|
|
- of which injected
|
7.93
|
7.96
|
0.03
|
0.4
|
|
|
|
- of which withdrawn
|
4.93
|
7.36
|
2.43
|
49.3
|
10.7
|
11.4
|
|
Available storage capacity (billions of cubic metres) (****)
|
10.7
|
11.4
|
0.7
|
6.5
|
|
|
|
(*) As of 1 April 2013, pursuant to Resolution 297/2012/R/gas of
19 July 2012, core business revenue includes the recharging to storage users of the costs relating
to the natural gas transportation service provided by Snam Rete Gas S.p.A. For the purposes of the
consolidated financial statements, this revenue is eliminated, together with transportation costs,
within Stogit S.p.A. in order to represent the substance of the operation.
(**) Before consolidation adjustments.
(***) Working gas capacity for
modulation services.
(****) Working gas capacity for modulation, mining and balancing services. The figure
indicated represents the maximum available and transferrable capacity, and may not correspond to
the maximum replenishment carried out.
Results
Revenue from natural gas storage in the first nine months of 2013 totalled €337 million
[9], up by €35 million, or 11.6%,
compared with the first nine months of 2012 (+€15 million in the third quarter; +18.3%). This
increase was due to the contribution from investments made in 2011 (+€24 million in the first nine
months of the year; +€8 million in the third quarter). The revenue from storage related to
modulation storage (€288 million, or +14.3% in the first nine months; €82 million, or +20.6% in the
third quarter) and to strategic storage (€47 million, or +4.4% in the first nine months; €15
million, or +7.1% in the third quarter).
EBIT in the first nine months of 2013 totalled €239 million, up by €30 million, or 14.4%,
compared with the corresponding period of 2012. In the third quarter of 2013, EBIT rose by €16
million, or 32.0%, compared with the third quarter of 2012. Higher storage revenue (+€34 million in
the first nine months, net of revenue offset in costs; +€15 million in the third quarter) was
partly offset by an increase in operating costs (-€3 million in the first nine months, net of
components offset in revenue; unchanged in the third quarter) and by higher amortisation and
depreciation for the period (-€2 million in the first nine months; unchanged in the third
quarter).
Operating review
Natural gas moved through the storage system
The volumes of gas moved through the storage system in the first nine months of 2013 amounted
to 15.32 billion cubic metres, an increase of 2.46 billion cubic metres (19.1%) compared with the
volumes moved in the first nine months of 2012 (12.86 billion cubic metres). The increase was due
mainly to higher withdrawals from storage (+2.43 billion cubic metres; +49.3%) as a result of the
temperatures recorded in March and April 2013, which were colder than in the corresponding period
of the previous year.
In the third quarter of 2013, the amount of gas moved through the storage system amounted to
4.08 billion cubic metres, up by 0.89 billion cubic metres (+27.9%) compared with the corresponding
period of the previous year. This increase was due entirely to higher volumes injected into
storage.
Total storage capacity at 30 September 2013, including strategic storage, was 15.9 billion
cubic metres (+0.2 billion cubic metres; +1.3%), of which 9.9 billion cubic metres related to
available capacity allocated (10.7 billion cubic metres in thermal year 2012-2013), 1.5 billion
cubic metres related to available capacity not yet allocated and 4.5 billion cubic metres related
to strategic storage (unchanged compared with thermal year 2012-2013).
Investments
(€ million)
|
|||||||
Third quarter
|
|
First nine months
|
Change
|
% change
|
|||
2012
|
2013
|
|
2012
|
2013
|
|||
20
|
35
|
|
Development of new fields (4% incentive over 16 years)
|
47
|
97
|
50
|
|
22
|
7
|
|
Upgrading of capacity (4% incentive over 8 years)
|
49
|
37
|
(12)
|
(24.5)
|
5
|
8
|
|
Maintenance and other
|
14
|
21
|
7
|
50.0
|
47
|
50
|
|
|
110
|
155
|
45
|
40.9
|
Investments in the first nine months of 2013 amounted to €155 million, an increase of €45
million, or 40.9%, compared with the first nine months of 2012.
Investments were classified in accordance with Resolution ARG/gas 119/10 of the Electricity
and Gas Authority, which identified various categories of projects with different incentive
levels.
A total of 86% of investments are expected to benefit from incentive-based returns. The
breakdown of investments for 2013 will be submitted to the Authority when it approves the proposed
tariff for 2015 and may differ from the tariff in the current regulatory period, which ends on 31
December 2014.
Investments with a
4% incentive over 16 years (€97 million) relate mainly to development activities at the
Bordolano and Fiume Treste fields for drilling, the acquisition of materials and the execution of
work on the plants, as well as to engineering activities relating to the development of the
Alfonsine field.
Investments with a
4% incentive over 8 years (€37 million) relate to drilling and repowering activities at the
Fiume Treste, Sabbioncello, Minerbio and Settala fields.
Withdrawals of strategic gas reserves from storage in 2010-2011
With Resolution 91/2013/S/gas, published on 7 March 2013, the Electricity and Gas Authority
initiated proceedings for the adoption of prescriptive measures against Speia S.p.A. and Stogit
S.p.A. in relation to possible anomalies in the management of withdrawals of strategic gas reserves
in the 2010-2011 thermal year for storage.
The proceedings in question resulted from the survey launched by Resolutions 282/2012/R/gas
and 444/2012/R/gas, with regard to anomalies observed on the balancing market in the period from 1
December 2011 to 23 October 2012, and from the need to carry out an investigation. The purpose of
the proceedings is to ascertain the facts concerning withdrawals of strategic gas by Speia during
the 2010 thermal year for storage and for the Authority to adopt prescriptive measures to protect
one company or the other under combined sanctions, in derogation of the regulations in force and in
order to avoid irregular expense and consequences for end customers. On 20 May 2013, Stogit
appeared before the body in charge of the proceeding for a hearing.
With Resolution 463/2013/E/gas of 22 October 2013, the Authority closed the proceeding started
with Resolution 91/2013/S/gas, and confirmed, in line with the investigation results, that there is
no basis for prescriptive measures against Stogit.
Regulation
Resolution 350/2013/R/gas
–
Approval of business fees and determination of unit fees for the storage service for
2014.
With this resolution, which was published on 2 August 2013, the Electricity and Gas Authority
approved the storage tariffs for 2014. The RAB as at 31 December 2012 for natural gas storage
activities was €3.7 billion. The storage tariffs for 2014 were determined based on reference
revenues of around €453 million.
Natural gas distribution
(€ million)
|
|||||||
Third quarter
|
|
First nine months
|
Change
|
% change
|
|||
2012
|
2013
|
|
2012
|
2013
|
|||
307
|
320
|
Core business revenue (*)
|
926
|
944
|
18
|
1.9
|
|
299
|
310
|
|
- of which natural gas distribution
|
900
|
914
|
14
|
1.6
|
235
|
248
|
|
Core business revenue net of IFRIC 12
|
707
|
742
|
35
|
5.0
|
227
|
238
|
|
- of which natural gas distribution
|
681
|
712
|
31
|
4.6
|
199
|
143
|
Operating costs (*)
|
495
|
427
|
(68)
|
(13.7)
|
|
127
|
71
|
Operating costs net of IFRIC12
|
276
|
225
|
(51)
|
(18.5)
|
|
92
|
127
|
EBIT (**)
|
351
|
379
|
28
|
8.0
|
|
78
|
78
|
Investments
|
235
|
221
|
(14)
|
(6.0)
|
|
608
|
680
|
Gas distribution (millions of cubic metres)
|
5,155
|
5,160
|
5
|
0.1
|
|
52,478
|
52,766
|
Distribution network (***) (kilometres)
|
52,478
|
52,766
|
288
|
0.5
|
|
5.890
|
5.915
|
Active meters (millions)
|
5.890
|
5.915
|
0.025
|
0.4
|
|
|
|
(*) Before consolidation adjustments.
(**) EBIT for the first nine months and third quarter of 2012 includes provisions for
environmental expenses (€71 million) paid as indemnification, net of tax effect, by Eni to Snam
pursuant to contractual agreements entered into when completing the acquisition of Italgas.
(***) This figure refers to the
kilometres of network managed by Italgas.
Results
Revenue from natural gas distribution in the first nine months of 2013 totalled €914
million, up by €14 million, or +1.6%, compared with the first nine months of 2012 (+€11 million in
the third quarter; +3.7%). Excluding the effects of applying IFRIC 12, distribution revenue rose by
€31 million, or 4.6%, due mainly to tariff updating mechanisms (+€11 million in the third quarter;
+4.8%).
EBIT in the first nine months of 2013 amounted to €379 million, up by €28 million, or 8.0%,
compared with the corresponding period of 2012. This increase was due mainly to higher revenue from
natural gas transmission (+€31 million) and to the reduction in operating costs (+€51 million)
attributable to provisions for risks and charges, which were considerably lower in the first nine
months of 2013 because of the provisions for environmental expenses set aside in the first nine
months of 2012 (€71 million). These expenses are not recorded for the purposes of the consolidated
financial statements, since they were paid as indemnification, net of tax effect, by Eni to Snam
pursuant to agreements entered into between the parties upon completion of the acquisition of
Italgas.
These factors were partly offset by higher amortisation and depreciation for the period (-€28
million) and greater capital gains on natural gas distribution concessions (-€20 million). The
increase in amortisation and depreciation was also due in particular to new infrastructure becoming
operational and to the effects of the costs incurred for the award of the concession for Rome,
where Italgas no longer owns the assets but is licensed to use them (-€15 million). These costs,
net of the reimbursement as determined by the agreement with the Municipality of Rome, are
amortised over the duration of the concession (12 years).
In the third quarter of 2013, EBIT increased by €35 million, or 38.0%, compared with the
corresponding period of 2012. The higher revenue from natural gas transmission (+€11 million) and
reduced operating costs (+€56 million) were partly offset by lower capital gains on natural gas
distribution concessions (-€20 million).
Operating review
Natural gas distribution
In the first nine months of 2013, 5,160 million cubic metres of gas were distributed, an
increase of 5 million cubic metres, or 0.1%, compared with the same period in 2012.
At 30 September 2013, Snam held a gas distribution concession in 1,435 municipalities
(unchanged from 31 December 2012), of which 1,337 with operational networks and 98 with networks to
be completed and/or constructed. At 30 September 2013, the number of active meters located at
end-user gas redelivery points (households, businesses, etc.) stood at 5.915 million (5.890 million
at 30 September 2012).
Distribution network
At 30 September 2013, the gas distribution network covered 52,766 kilometres (52,586
kilometres at 31 December 2012). The increase of 180 kilometres compared with the end of 2012 is
due to the construction of new networks, specifically in Calabria, and to the extension of networks
for concession commitments.
Investments
(€ million)
|
|||||||
Third quarter
|
|
|
First nine months
|
Change
|
% change
|
||
2012
|
2013
|
|
2012
|
2013
|
|||
58
|
55
|
|
Distribution
|
167
|
148
|
(19)
|
(11.4)
|
48
|
40
|
|
Network maintenance and development
|
133
|
113
|
(20)
|
(15.0)
|
10
|
15
|
|
Replacement of cast-iron pipes (2% incentive)
|
34
|
35
|
1
|
2.9
|
14
|
17
|
|
Metering (8% remuneration)
|
52
|
54
|
2
|
3.8
|
6
|
6
|
|
Other investments
|
16
|
19
|
3
|
18.8
|
78
|
78
|
|
|
235
|
221
|
(14)
|
(6.0)
|
Investments in the first nine months of 2013 amounted to €221 million, a decrease of €14
million, or 6%, compared with the first nine months of 2012.
Investments in distribution (€148 million) mainly involved development projects (extensions
and new networks) and the renovation of old sections of pipe, including the replacement of
cast-iron pipes.
Investments in metering (€54 million) primarily concerned the meter replacement programme
and the remote meter-reading project.
Other investments (€19 million) mainly concerned investments in IT, property and
vehicles.
Regulation
Consultation Document 359/2013/R/gas
–
“Final guidelines for defining the cost and tariffs for gas distribution and metering services
in the fourth regulatory period�?.
On 7 August, the Authority published the fourth consultation document on the final guidelines
for defining the cost and tariffs for gas distribution and metering services in the fourth
regulatory period.
Other information
Litigation
Snam is involved in civil, administrative and criminal cases and legal actions related to its
normal business activities. Below is a description of the most significant proceedings in which
developments have taken place since they were described in the 2012 annual report and the half-year
report as at 30 June 2013.
Competition Authority
Italgas S.p.A. – Investigation of the gas distribution segment in Italy
In October 2010, the Competition Authority started an investigation to determine whether
Italgas had abused its dominant position, obstructing the Municipalities of Rome and Todi in
preparing their calls for tenders for the contracting of the gas distribution service.
The decision was taken in light of indications sent to the Competition Authority by two local
entities accusing the company, as gas distribution service concessionaire, of having delayed or
refused to give the necessary information to the authorities to prepare calls for tenders for
contracting the service.
Italgas contested the Competition Authority’s charges, justifying its behaviour both with
regard to the delay and the refusal to send certain data and information, and with reference to the
existence of a plan to shut out its competitors.
Through measures taken on 14 December 2011, the Competition Authority imposed a penalty on
Italgas of approximately €5 million, for having conducted supposedly abusive practices in the
context of tenders for the allocation of the gas distribution service held by the Municipality of
Rome and the Municipality of Todi. The company had made sufficient provisions for risks.
Furthermore, in compliance with the Competition Authority's measures, on 16 March 2012 the
company provided the Municipality of Todi with data relating to private contributions received, and
Italgas subsequently wrote to the Competition Authority providing proof that it had fulfilled this
obligation.
Italgas proceeded to pay the penalty, as required by law, and lodged an appeal against the
decision with the administrative judge. A hearing on the merits took place on 20 February
2013.
On 11 October 2013, the Lazio regional administrative court handed down a ruling reducing the
penalty issued to Italgas to around €1.5 million. This decision is subject to the terms of the law
for appeals to the Council of State.
The following summary tables show the reclassified consolidated income statement items.
Revenue
(€ million)
|
|||||||
Third quarter
|
|
First nine months
|
|||||
2012
|
2013
|
|
2012
|
2013
|
Change
|
% change
|
|
856
|
905
|
|
Core business revenue
|
2,647
|
2,744
|
97
|
3.7
|
|
|
|
Business segments
|
|
|
|
|
472
|
497
|
|
Transportation
|
1,433
|
1,487
|
54
|
3.8
|
10
|
7
|
|
Regasification
|
27
|
23
|
(4)
|
(14.8)
|
82
|
110
|
|
Storage (*)
|
302
|
362
|
60
|
19.9
|
307
|
320
|
|
Distribution
|
926
|
944
|
18
|
1.9
|
72
|
72
|
|
- of which effects of IFRIC 12
|
219
|
202
|
(17)
|
(7.8)
|
49
|
42
|
|
Corporate
|
129
|
122
|
(7)
|
(5.4)
|
(64)
|
(71)
|
|
Consolidation adjustments
|
(170)
|
(194)
|
(24)
|
14.1
|
36
|
25
|
|
Other revenue and income
|
108
|
91
|
(17)
|
(15.7)
|
892
|
930
|
|
Total revenue
|
2,755
|
2,835
|
80
|
2.9
|
(*) As of 1 April 2013, the core business revenue of the storage segment includes
the recharging of the transportation service provided by Snam Rete Gas pursuant to Resolution
297/2012/R/gas of the Electricity and Gas Authority of 19 July 2012. This recharging (€24 million
and €12 million in the first nine months and the third quarter of 2013 respectively) is offset in
operating costs associated with the purchase of the transportation capacity provided by Snam Rete
Gas.
Revenue – Regulated and non-regulated activities
|
(€ million)
|
|||||
Third quarter
|
First nine months
|
|||||
2012
|
2013
|
2012
|
2013
|
Change
|
% change
|
|
874
|
920
|
Revenue from regulated activities
|
2,707
|
2,805
|
98
|
3.6
|
469
|
511
|
Transportation
|
1,469
|
1,544
|
75
|
5.1
|
7
|
5
|
Regasification
|
18
|
17
|
(1)
|
(5.6)
|
71
|
87
|
Storage
|
266
|
299
|
33
|
12.4
|
327
|
317
|
Distribution
|
954
|
945
|
(9)
|
(0.9)
|
72
|
72
|
- of which effects of IFRIC 12
|
219
|
202
|
(17)
|
(7.8)
|
18
|
10
|
Revenue from non-regulated activities
|
48
|
30
|
(18)
|
(37.5)
|
892
|
930
|
|
2,755
|
2,835
|
80
|
2.9
|
(*) Revenue from regulated activities in the distribution segment in the first
nine months of 2013 includes capital gains on the sale of plants to municipalities granting
distribution concessions. Accordingly, the corresponding values for 2012 have been reclassified
from “Revenue from non-regulated activities�?.
Operating costs
(€ million)
|
|||||||
Third quarter
|
|
First nine months
|
|||||
2012
|
2013
|
|
2012
|
2013
|
Change
|
% change
|
|
|
|
|
Business segments
|
|
|
|
|
90
|
94
|
|
Transportation
|
288
|
307
|
19
|
6.6
|
5
|
4
|
|
Regasification
|
19
|
15
|
(4)
|
(21.1)
|
16
|
30
|
|
Storage (*)
|
46
|
76
|
30
|
65.2
|
199
|
143
|
|
Distribution
|
495
|
427
|
(68)
|
(13.7)
|
72
|
72
|
|
- of which effects of IFRIC 12
|
219
|
202
|
(17)
|
(7.8)
|
46
|
44
|
|
Corporate
|
121
|
124
|
3
|
2.5
|
(138)
|
(72)
|
|
Consolidation adjustments and eliminations
|
(246)
|
(197)
|
49
|
(19.9)
|
218
|
243
|
|
|
723
|
752
|
29
|
4.0
|
(*) As of 1 April 2013, operating costs in the storage segment include the costs
associated with purchasing the transportation capacity provided by Snam Rete Gas pursuant to
Resolution 297/2012/R/gas of the Electricity and Gas Authority of 19 July 2012.
Operating costs – Regulated and non-regulated activities
|
(€ million)
|
|||||
Third quarter
|
First nine months
|
|||||
2012
|
2013
|
2012
|
2013
|
Change
|
% change
|
|
216
|
237
|
Regulated business costs
|
695
|
727
|
32
|
4.6
|
104
|
108
|
Controllable fixed costs
|
334
|
336
|
2
|
0.6
|
7
|
25
|
Variable costs
|
61
|
88
|
27
|
44.3
|
105
|
104
|
Other costs
|
300
|
303
|
3
|
1.0
|
72
|
72
|
- of which effects of IFRIC 12
|
219
|
202
|
(17)
|
(7.8)
|
2
|
6
|
Non-regulated business costs
|
28
|
25
|
(3)
|
(10.7)
|
218
|
243
|
|
723
|
752
|
29
|
4.0
|
Amortisation, depreciation and impairment losses
(€ million)
|
||||||
Third quarter
|
First nine months
|
|||||
2012
|
2013
|
2012
|
2013
|
Change
|
% change
|
|
175
|
191
|
Amortisation and depreciation
|
520
|
567
|
47
|
9.0
|
|
|
Business segments
|
|
|
||
112
|
118
|
Transportation
|
336
|
353
|
17
|
5.1
|
2
|
2
|
Regasification
|
4
|
4
|
||
16
|
16
|
Storage
|
47
|
49
|
2
|
4.3
|
44
|
54
|
Distribution
|
131
|
159
|
28
|
21.4
|
1
|
1
|
Corporate
|
2
|
2
|
||
175
|
191
|
|
520
|
567
|
47
|
9.0
|
EBIT
(€ million)
|
||||||
Third quarter
|
First nine months
|
|||||
2012
|
2013
|
2012
|
2013
|
Change
|
% change
|
|
|
|
Business segments
|
|
|
|
|
281
|
305
|
Transportation
|
870
|
898
|
28
|
3.2
|
3
|
1
|
Regasification
|
5
|
4
|
(1)
|
(20.0)
|
50
|
66
|
Storage
|
209
|
239
|
30
|
14.4
|
92
|
127
|
Distribution
|
351
|
379
|
28
|
8.0
|
2
|
(3)
|
Corporate
|
6
|
(4)
|
(10)
|
|
71
|
|
Consolidation adjustments
|
71
|
|
(71)
|
(100.0)
|
499
|
496
|
|
1,512
|
1,516
|
4
|
0.3
|
Net financial expense
(€ million)
|
||||||
Third quarter
|
First nine months
|
|||||
2012
|
2013
|
2012
|
2013
|
Change
|
% change
|
|
105
|
111
|
Financial expense related to financial debt
|
239
|
376
|
137
|
57.3
|
105
|
111
|
- Expense on short- and long-term financial debt
|
239
|
376
|
137
|
57.3
|
363
|
Expense on IRS contracts (*)
|
406
|
|
(406)
|
(100.0)
|
|
7
|
(1)
|
Other financial expense (income)
|
14
|
13
|
(1)
|
(7.1)
|
(10)
|
(9)
|
Financial expense capitalised
|
(27)
|
(26)
|
1
|
(3.7)
|
465
|
101
|
632
|
363
|
(269)
|
(42.6)
|
(*) The figure for the first nine months and third quarter of 2012 includes
financial expense arising from the early extinguishment of 12 IRS contracts (€335
million).
Net income from equity investments
(€ million)
|
||||||
Third quarter
|
First nine months
|
|||||
2012
|
2013
|
2012
|
2013
|
Change
|
% change
|
|
15
|
(7)
|
Equity method valuation effect
|
39
|
28
|
(11)
|
(28.2)
|
15
|
(7)
|
|
39
|
28
|
(11)
|
(28.2)
|
Income taxes
|
(€ million)
|
|||||
Third quarter
|
First nine months
|
|||||
2012
|
2013
|
2012
|
2013
|
Change
|
% change
|
|
49
|
197
|
Current taxes
|
444
|
566
|
122
|
27.5
|
|
(Prepaid) deferred taxes
|
|
||||
(17)
|
(24)
|
Deferred taxes
|
(54)
|
(60)
|
(6)
|
11.1
|
12
|
3
|
Prepaid taxes
|
16
|
1
|
(15)
|
(93.8)
|
(5)
|
(21)
|
|
(38)
|
(59)
|
(21)
|
55.3
|
44
|
176
|
|
406
|
507
|
101
|
24.9
|
Reclassified balance sheet
The reclassified balance sheet set out below combines the assets and liabilities of the
condensed consolidated balance sheet based on how the business operates, split into the three basic
functions: investment, operations and financing.
Management believes that this format presents useful additional information for investors as
it allows identification of the sources of financing (equity and third-party funds) and the
application of such funds for fixed and working capital.
The reclassified balance sheet is used by management to calculate the key leverage and
profitability ratios.
RECLASSIFIED BALANCE SHEET
30.06.2013
|
(€ million)
|
31.12.2012
|
30.09.2013
|
Change
|
19,707
|
Fixed capital
|
19,567
|
20,374
|
807
|
14,543
|
Property, plant and equipment
|
14,522
|
14,581
|
59
|
363
|
Compulsory inventories
|
363
|
363
|
|
4,616
|
Intangible assets
|
4,593
|
4,630
|
37
|
430
|
Equity investments
|
473
|
1,012
|
539
|
2
|
Financial receivables held for operations
|
2
|
13
|
11
|
(247)
|
Net payables for investments
|
(386)
|
(225)
|
161
|
(1,166)
|
Net working capital (*)
|
(1,139)
|
(1,636)
|
(497)
|
(130)
|
Provisions for employee benefits (*)
|
(129)
|
(133)
|
(4)
|
15
|
Assets held for sale and directly related liabilities
|
15
|
15
|
|
18,426
|
Net invested capital
|
18,314
|
18,620
|
306
|
5,866
|
Shareholders’ equity (including minority interests) (*)
|
5,916
|
5,743
|
(173)
|
12,560
|
Net financial debt
|
12,398
|
12,877
|
479
|
18,426
|
Coverage
|
18,314
|
18,620
|
306
|
(*) The figures recorded at 31 December 2012 were restated following the
retrospective application of the new provisions of IAS 19. The restatement resulted in: (i) an
increase in provisions for employee benefits (€21 million); (ii) an improvement in net working
capital (€7 million) following the reduction in deferred tax liabilities; and (iii) a reduction in
shareholders’ equity (€14 million) in terms of net effect. More details can be found in Note 1 to
the condensed interim consolidated financial statements, “Basis of presentation and accounting
principles�?.
Fixed capital(€20,374 million) rose by €807 million compared with 31 December 2012, mainly
due to the increase in equity investments (+€539 million) and the reduction in net payables for
investments (+€161 million), associated primarily with payment trends.
Equity investments
The equity investments item (€1,012 million) includes the valuation of equity investments
using the equity method and refers in particular to TIGF Holding SAS (€557 million)
[10], Toscana Energia S.p.A. (€148
million), Azienda Energia e Servizi Torino S.p.A. (€118 million), Gasbridge 1 B.V. (€67 million)
and Gasbridge 2 B.V. (€67 million).
Net working capital
30.06.2013
|
(€ million)
|
31.12.2012
|
30.09.2013
|
Change
|
1,977
|
Trade receivables
|
1,921
|
1,952
|
31
|
183
|
Inventories
|
202
|
163
|
(39)
|
44
|
Tax receivables
|
125
|
37
|
(88)
|
322
|
Other assets
|
193
|
217
|
24
|
(897)
|
Trade payables
|
(764)
|
(820)
|
(56)
|
(790)
|
Deferred tax liabilities
|
(827)
|
(769)
|
58
|
(748)
|
Provisions for risks and charges
|
(757)
|
(726)
|
31
|
(145)
|
Tax payables
|
(81)
|
(340)
|
(259)
|
(266)
|
Accruals and deferrals from regulated activities
|
(309)
|
(235)
|
74
|
(846)
|
Other liabilities
|
(842)
|
(1,115)
|
(273)
|
(1,166)
|
|
(1,139)
|
(1,636)
|
(497)
|
Net working capital decreased by €497 million compared with 31 December 2012 to -€1,636
million, owing mainly to: (i) an increase in other liabilities (-€273 million), due mainly to the
provision set aside for the payable due to shareholders in relation to the 2013 interim dividend,
equal to €0.10 euro per share (-€338 million), which was partly offset by payment of the residual
payable due to Eni for the early extinguishment of hedging derivatives (+€141 million); (ii) an
increase in tax payables (-€259 million), due essentially to higher income tax payables (-€242
million) as a result of lower advance tax payments made; and (iii) a reduction in tax receivables
(-€88 million), due mainly to the payment of VAT receivables in existence as at 31 December 2012 in
relation to the distribution segment.
These factors were partly offset by the reduction in accruals and deferrals from regulated
activities (+€74 million) and in deferred tax liabilities (+€58 million).
Statement of comprehensive income
(€ million)
|
First nine months
|
|
2012
|
2013
|
|
Net profit
|
513
|
674
|
Other components of comprehensive income
|
|
|
Components that can be reclassified to the income statement:
|
|
|
Change in fair value of cash flow hedge derivatives (effective share)
|
(77)
|
|
Reclassification to income statement of expense arising from fair-value
measurement of hedging derivatives (*)
|
215
|
|
Share of “Other components of comprehensive income�? on equity accounted
entities
|
(6)
|
|
Tax effect
|
32
|
|
Total other components of comprehensive income, net of tax effect
|
170
|
(6)
|
Total comprehensive income
|
683
|
668
|
attributable to:
|
||
- Snam
|
683
|
668
|
- Minority interests
|
||
683
|
668
|
(*) Pursuant to IAS 39, from the time that hedge accounting ceases,
an entity must discontinue hedge accounting prospectively. The shareholders' equity reserve
resulting from the fair-value measurement of hedging derivatives up to that date must be
reclassified to the income statement in full.
Shareholders’ equity
(€ million)
|
||
Shareholders’ equity at 31 December 2012
|
5,916
|
|
Increases owing to:
|
||
- Comprehensive income for the first nine months of 2013
|
668
|
|
- Other changes
|
4
|
|
672
|
||
Decreases owing to:
|
||
- Distribution of balance of 2012 dividend
|
(507)
|
|
- 2013 interim dividend
|
(338)
|
|
(845)
|
||
Shareholders’ equity including minority interests at 30 September 2013
|
|
5,743
|
attributable to:
|
|
|
- Snam
|
|
5,742
|
- Minority interests
|
|
1
|
5,743
|
Other changes (+€4 million) relate to the exercise of 988,500 stock options by Snam
executives. At 30 September 2013, Snam had a total of 1,918,050 treasury shares (compared with
2,906,550 at 31 December 2012), equivalent to 0.06% of its share capital. The market value at 30
September 2013 was around €7.1 million
[11].
Net financial debt
30.06.2013
|
(€ million)
|
31.12.2012
|
30.09.2013
|
Change
|
12,564
|
Financial liabilities
|
12,413
|
12,880
|
467
|
798
|
Short-term financial liabilities
|
364
|
1,192
|
828
|
250
|
Current share of long-term financial liabilities
|
110
|
236
|
126
|
11,516
|
Long-term financial liabilities
|
11,939
|
11,452
|
(487)
|
(4)
|
Financial receivables and cash and cash equivalents
|
(15)
|
(3)
|
12
|
(4)
|
Cash and cash equivalents
|
(15)
|
(3)
|
12
|
12,560
|
|
12,398
|
12,877
|
479
|
Net financial debt was €12,877 million at 30 September 2013, compared with €12,398 million at
31 December 2012.
The net cash flow from operations (€1,480 million) allowed us to fully cover the financial
requirements associated with net investments and the development of overseas activities for the
period (€1,456 million in total) and to generate a free cash flow of €24 million. After payment to
shareholders of the balance of the 2012 dividend (€507 million), net financial debt was €479
million higher than on 31 December 2012.
Financial liabilities at 30 September 2013, which totalled €12,880 million, were denominated
entirely in euros and consisted mainly of bonds (€8.4 billion, or 65.4%), payables to banks (€3.5
billion, or 26.8%) and loan agreements concerning European Investment Bank (EIB) funding (€1.0
billion, or 7.6%).
Long-term financial liabilities of €11,688 million, including short-term portions, make up
approximately 90.7% of financial debt (around 97% at 31 December 2012) and have an average duration
of 4.7 years (compared with approximately five years at 31 December 2012).
The breakdown of debt by type of interest rate at 30 September 2013 is as follows:
(€ million)
|
31.12.2012
|
%
|
30.09.2013
|
%
|
Change
|
Floating rate
|
6,365
|
51
|
4,457
|
35
|
(1,908)
|
Fixed rate
|
6,048
|
49
|
8,423
|
65
|
2,375
|
|
|||||
|
12,413
|
100
|
12,880
|
100
|
467
|
Fixed-rate debt (€8,423 million) rose by €2,375 million after new bonds were issued (+€2,345
million).
Floating-rate debt (€4,457 million) fell by €1,908 million compared with 31 December 2012,
owing essentially to the early extinguishment of the term loan (-€1,483 million) and to the net
repayment of long-term revolving credit lines (-€1,534 million). These effects were partly offset
by the stipulation of a long-term loan agreement concerning EIB funding (+€283 million) and by the
increase in short-term debt (+€828 million), due essentially to the stipulation of a new loan
(+€600 million) and the use of uncommitted credit lines (+€210 million).
At 30 September 2013, Snam had unused committed long-term credit lines worth €4.5 billion.
There are no bonds due to mature in the 18 months after 30 September 2013.
Covenants
The main bilateral and syndicated loans in place with banks and other financial institutions
as at 30 September 2013 included covenants, in line with international practice. These concern,
inter alia, compliance with financial covenants and
pari passu, negative pledge and change of control clauses. Some covenants are also provided
for the bonds issued by Snam under the EMTN programme.
All the checks carried out on the financial covenants provided for under the financial
contracts in place confirmed that the said covenants had been complied with.
Reclassified statement of cash flows and change in net financial debt
The reclassified statement of cash flows set out below summarises the legally required format.
It shows the connection between the opening and closing cash and cash equivalents and the change in
net financial debt during the period. The two statements are reconciled through the free cash flow,
i.e. the cash surplus or deficit left over after servicing capital expenditure. The free cash flow
closes either: (i) with the change in cash for the period, after adding/deducting all cash flows
related to financial liabilities/assets (taking out/repaying financial receivables/payables) and
equity (payment of dividends/capital injections); or (ii) with the change in net financial debt for
the period, after adding/deducting the debt flows related to equity (payment of dividends/capital
injections).
RECLASSIFIED STATEMENT OF CASH FLOWS
Third quarter
|
First nine months
|
|||
2012
|
2013
|
(€ million)
|
2012
|
2013
|
5
|
212
|
Net profit
|
513
|
674
|
adjusted by:
|
||||
163
|
201
|
- amortisation, depreciation and other non-monetary components
|
485
|
543
|
(19)
|
4
|
- net capital losses (capital gains) on asset sales and eliminations
|
(19)
|
2
|
139
|
269
|
- interest and income taxes
|
660
|
822
|
(141)
|
(96)
|
Change in working capital due to operating activities
|
(330)
|
6
|
(155)
|
(29)
|
Dividends, interest and income taxes collected (paid)
|
(703)
|
(567)
|
(8)
|
561
|
Net cash flow from operating activities
|
606
|
1,480
|
(262)
|
(263)
|
Investments
|
(755)
|
(701)
|
(134)
|
(586)
|
Equity investments
|
(134)
|
(586)
|
2
|
1
|
Change in consolidation scope and business units
|
(24)
|
(9)
|
(11)
|
Financial investments held for operations
|
(11)
|
||
29
|
2
|
Divestments
|
56
|
12
|
10
|
(22)
|
Other changes relating to investment activities
|
(176)
|
(161)
|
(363)
|
(318)
|
Free cash flow
|
(427)
|
24
|
355
|
316
|
Change in short- and long-term financial debt
|
906
|
467
|
0
|
1
|
Equity cash flow
|
(473)
|
(503)
|
(8)
|
(1)
|
Net cash flow for the period
|
6
|
(12)
|
CHANGE IN NET FINANCIAL DEBT
Third quarter
|
First nine months
|
|||
2012
|
2013
|
(€ million)
|
2012
|
2013
|
(363)
|
(318)
|
Free cash flow
|
(427)
|
24
|
1
|
Equity cash flow
|
(473)
|
(503)
|
|
(363)
|
(317)
|
Change in net financial debt
|
(900)
|
(479)
|
IFRS financial statements
Balance sheet
30.06.2013
|
(€ million)
|
31.12.2012
|
30.09.2013
|
|
ASSETS
|
|
|
|
Current assets
|
|
|
4
|
Cash and cash equivalents
|
15
|
3
|
2,237
|
Trade and other
receivables
|
2,048
|
2,132
|
183
|
Inventories
|
202
|
163
|
10
|
Current income tax
assets
|
11
|
3
|
5
|
Other current tax
assets
|
89
|
5
|
84
|
Other current assets
|
115
|
63
|
2,523
|
|
2,480
|
2,369
|
|
Non-current assets
|
|
|
14,543
|
Property, plant and equipment
|
14,522
|
14,581
|
363
|
Compulsory inventories
|
363
|
363
|
4,616
|
Intangible
assets
|
4,593
|
4,630
|
430
|
Equity-accounted investments
|
473
|
1,012
|
165
|
Other non-current
assets
|
130
|
172
|
20,117
|
|
20,081
|
20,758
|
23
|
Non-current assets held for sale
|
23
|
23
|
|
|
||
22,663
|
TOTAL ASSETS
|
22,584
|
23,150
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
Current liabilities
|
|
|
798
|
Short-term financial liabilities
|
505
|
1,192
|
250
|
Short-term portion of long-term financial liabilities
|
110
|
236
|
1,517
|
Trade and other
payables
|
1,477
|
1,720
|
97
|
Current income tax
liabilities
|
46
|
287
|
48
|
Other current tax
liabilities
|
28
|
53
|
147
|
Other current
liabilities
|
218
|
99
|
2,857
|
|
2,384
|
3,587
|
|
Non-current liabilities
|
|
|
11,516
|
Long-term financial liabilities
|
11,939
|
11,452
|
748
|
Provisions for risks and
charges
|
757
|
726
|
130
|
Provisions for employee
benefits
|
129
|
133
|
790
|
Deferred tax
liabilities
|
827
|
769
|
748
|
Other non-current
liabilities
|
624
|
732
|
13,932
|
|
14,276
|
13,812
|
8
|
Liabilities directly associated with assets held for sale
|
8
|
8
|
16,797
|
TOTAL LIABILITIES
|
16,668
|
17,407
|
|
SHAREHOLDERS’
EQUITY
|
|
|
|
Snam shareholders’ equity
|
|
|
3,571
|
Share capital
|
3,571
|
3,571
|
1,840
|
Reserves
|
1,915
|
1,843
|
462
|
Net profit
|
779
|
674
|
(8)
|
Treasury shares
|
(12)
|
(8)
|
|
Interim dividend
|
(338)
|
(338)
|
5,865
|
Total Snam shareholders’ equity
|
5,915
|
5,742
|
1
|
Capital and reserves attributable to minority interests
|
1
|
1
|
5,866
|
TOTAL SHAREHOLDERS’ EQUITY
|
5,916
|
5,743
|
22,663
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
22,584
|
23,150
|
|
|
|
Income statement
Third quarter
|
First nine months
|
|||
2012
|
2013
|
(€ million)
|
2012
|
2013
|
|
REVENUE
|
|
||
856
|
905
|
Core business revenue
|
2,647
|
2,744
|
36
|
25
|
Other revenue and income
|
108
|
91
|
892
|
930
|
Total revenue
|
2,755
|
2,835
|
|
OPERATING COSTS
|
|
||
(130)
|
(151)
|
Purchases, services and other costs
|
(458)
|
(490)
|
(88)
|
(92)
|
Personnel expense
|
(265)
|
(262)
|
(175)
|
(191)
|
AMORTISATION, DEPRECIATION AND IMPAIRMENT LOSSES
|
(520)
|
(567)
|
499
|
496
|
EBIT
|
1,512
|
1,516
|
|
|
FINANCIAL INCOME (EXPENSE)
|
|
|
(2)
|
2
|
Financial income
|
5
|
|
(100)
|
(103)
|
Financial expense
|
(226)
|
(368)
|
(363)
|
Derivatives
|
(406)
|
|
|
(465)
|
(101)
|
(632)
|
(363)
|
|
|
INCOME FROM EQUITY INVESTMENTS
|
|
||
15
|
(7)
|
Equity method valuation effect
|
39
|
28
|
15
|
(7)
|
|
39
|
28
|
49
|
388
|
PRE-TAX PROFIT
|
919
|
1,181
|
(44)
|
(176)
|
Income
taxes
|
(406)
|
(507)
|
5
|
212
|
Net profit
|
513
|
674
|
5
|
212
|
- Snam
|
513
|
674
|
|
- Minority interests
|
|
||
|
Earnings per share
|
|
||
…
|
0.06
|
- basic (€ per share)
|
0.15
|
0.2
|
…
|
0.06
|
- diluted (€ per share)
|
0.15
|
0.2
|
|
|
|
Statement of comprehensive income
First nine months
|
||
(€ million)
|
2012
|
2013
|
Net profit
|
513
|
674
|
Other components of comprehensive income
|
|
|
Components that can be reclassified to the income statement:
|
|
|
Change in fair value of cash flow hedge derivatives (effective share)
|
(77)
|
|
Reclassification to income statement of expense arising from fair-value
measurement of hedging derivatives
|
215
|
|
Share of “Other components of comprehensive income�? on equity accounted
entities
|
(6)
|
|
Tax effect
|
32
|
|
Total other components of comprehensive income, net of tax effect
|
170
|
(6)
|
Total comprehensive income
|
683
|
668
|
. attributable to:
|
||
- Snam
|
683
|
668
|
- Minority interests
|
||
683
|
668
|
Statement of cash flows
Third quarter
|
First nine months
|
|||
2012
|
2013
|
(€ million)
|
2012
|
2013
|
5
|
212
|
Net profit
|
513
|
674
|
|
Adjustments for reconciling profit for the period with cash flow from operating
activities:
|
|
||
175
|
191
|
Amortisation and depreciation
|
520
|
567
|
(15)
|
7
|
Equity method valuation effect
|
(39)
|
(28)
|
(19)
|
4
|
Net capital losses (capital gains) on asset sales, cancellations and
eliminations
|
(19)
|
2
|
2
|
(2)
|
Interest income
|
(5)
|
|
93
|
95
|
Interest expense
|
254
|
320
|
44
|
176
|
Income taxes
|
406
|
507
|
|
Changes in working capital:
|
|
||
8
|
16
|
- Inventories
|
43
|
63
|
(62)
|
25
|
- Trade receivables
|
(493)
|
(31)
|
(188)
|
(77)
|
- Trade payables
|
33
|
56
|
(9)
|
(4)
|
- Provisions for risks and charges
|
3
|
(3)
|
(240)
|
(56)
|
- Other assets and liabilities
|
(266)
|
62
|
(491)
|
(96)
|
Working capital cash flow
|
(680)
|
147
|
3
|
3
|
Change in provisions for employee benefits
|
4
|
4
|
11
|
67
|
Dividends collected
|
13
|
68
|
(3)
|
Interest collected
|
1
|
||
(93)
|
(95)
|
Interest paid
|
(254)
|
(310)
|
(70)
|
(1)
|
Income taxes paid net of reimbursed tax credits
|
(462)
|
(326)
|
(358)
|
561
|
Net cash flow from operating activities
|
256
|
1,621
|
|
Investments:
|
|
||
(75)
|
(77)
|
- Intangible assets
|
(217)
|
(211)
|
(187)
|
(186)
|
- Property, plant and equipment
|
(538)
|
(490)
|
(134)
|
(586)
|
Equity investments
|
(134)
|
(586)
|
2
|
1
|
- Change in scope of consolidation and business units
|
(24)
|
(9)
|
(11)
|
- Financial receivables held for operations
|
(11)
|
||
15
|
(23)
|
- Change in payables and receivables relating to investments
|
(171)
|
(162)
|
(379)
|
(882)
|
Cash flow from investment activities
|
(1,084)
|
(1,469)
|
|
Divestments:
|
|
||
5
|
1
|
- Property, plant and equipment
|
5
|
2
|
24
|
1
|
- Intangible assets
|
51
|
10
|
(5)
|
1
|
- Change in payables and receivables relating to divestments
|
(5)
|
1
|
24
|
3
|
Cash flow from divestments
|
51
|
13
|
(355)
|
(879)
|
Net cash flow from investment activities
|
(1,033)
|
(1,456)
|
8,370
|
1,133
|
Taking on long-term financial debt
|
9,891
|
2,997
|
(6,700)
|
(1,211)
|
Repaying long-term financial debt
|
(7,927)
|
(3,358)
|
(965)
|
394
|
Increase (decrease) in short-term financial debt
|
(708)
|
687
|
705
|
316
|
|
1,256
|
326
|
1
|
Net equity capital injections
|
4
|
||
Dividends paid to Snam shareholders
|
(473)
|
(507)
|
||
705
|
317
|
Net cash flow from financing activities
|
783
|
(177)
|
(8)
|
(1)
|
Net cash flow for the period
|
6
|
(12)
|
16
|
4
|
Cash and cash equivalents at start of period
|
2
|
15
|
8
|
3
|
Cash and cash equivalents at end of period
|
8
|
3
|
[1] This press release constitutes the
interim directors’ report pursuant to Article 154-
ter of the Italian code for securities and exchanges (Testo Unico della Finanza -
TUF).
[2] Total revenue, including revenue
arising from the construction and upgrading of distribution infrastructure pursuant to IFRIC 12,
amounted to €2,835 million (+2.9%) and €930 million (+4.3%) in the first nine months and the third
quarter respectively.
[3] EBIT for the natural gas distribution
segment in the first nine months and the third quarter of 2012 includes the positive effect of the
consolidation adjustment relating to provisions for environmental expenses (€71 million) that Eni
repaid to Snam, net of tax effect, pursuant to contractual agreements entered into when completing
the acquisition of Italgas.
[4] These include investments in metering
and are classified on the basis of current regulations.
[5] More information on the net financial
debt can be found on page 30.
[6] EBIT is analysed by considering only
those components that have changed it, since the application of the gas sector tariff rules
generates revenue and cost items that offset each other: modulation, interconnection and balancing.
Specifically, revenue from the balancing business (€70 million in the first nine months of 2013;
€46 million in the first nine months of 2012) relates to sales of natural gas made for the purposes
of balancing the gas network and is matched to operating costs linked to withdrawals from the gas
storage system.
[7] Gas volumes are expressed in standard
cubic metres (SCM) with a traditional higher heating value (HHV) of 38.1 MJ/SCM. The basic figure
is measured in energy (MJ) and obtained by multiplying the physical cubic metres actually measured
by the relative heating value.
[8] Capacity fees include revenue related
to the regasification commitment for an annual volume of LNG and a share of revenue related to the
activity of docking and unloading methane tankers.
[9] Including payments totalling €2
million received from Eni in addition to storage revenue for the thermal year from 1 April 2012 –
31 March 2013 (€5 million for the thermal year from 1 April 2011 – 31 March 2012) in respect of the
contractual agreements signed by Eni and Stogit relating to activities connected to Legislative
Decree 130/2010, “
Measures for greater competition in the natural gas market and the transfer of resulting
benefits to end customers, pursuant to Article 30, paragraphs 6 and 7 of Law 99 of 23 July
2009".
[10] TIGF Holding SAS, which was
incorporated in July 2013, is a jointly owned associate company in which Snam holds 45%,
Singaporean sovereign fund GIC holds 35% and EDF holds 20%, through its fund dedicated to the
liabilities arising from the dismantling of nuclear reactors. The company owns 100% of the share
capital of TIGF Investissements, the special-purpose entity that has acquired 100% of TIGF.
[11] Calculated by multiplying the
number of treasury shares by the period-end official price of €3.72 per share.
Page Alert
updated
05 August 2016 - 16:19 CEST
05 August 2016 - 16:19 CEST