Snam announces results for the first nine months and the third quarter of 2017

Price sensitive

San Donato Milanese, 7 November 2017 – Snam’s Board of Directors, at yesterday's meeting chaired by Carlo Malacarne, approved the consolidated results for the first nine months and the third quarter of 2017 (unaudited). The Board also resolved to distribute an interim dividend for 2017 of €0.0862 per share, which will be paid out as of 24 January 2018.

Financial highlights 1

  • Total revenue: €1,896 million (+1.9% compared with adjusted pro-forma total revenue for the first nine months of 2016, due to continued investments and greater volumes of gas injected)
  • EBIT: €1,063 million (+3.3% compared with adjusted pro-forma EBIT for the first nine months of 2016, due to a reduction in operating costs resulting from the efficiency measures implemented to date)
  • Net profit: €755 million (+18.2% compared with the adjusted pro-forma net profit for the first nine months of 2016, thanks to lower net financial expenses resulting from a reduction in the average cost of borrowing)
  • Technical investments: €683 million (+15.0%)
  • Free Cash Flow: €818 million
  • Interim dividend: €0.0862 per share

Operating highlights

  • Natural gas demand: 52.28 billion cubic metres (+8.1% compared with the first nine months of 2016, up for the eleventh consecutive quarter)
  • Gas injected into the transportation network: 55.48 billion cubic metres (+7.9% compared with the first nine months of 2016)
  • Available storage capacity: 12.2 billion cubic metres (99.98% of the available capacity)

Significant events

  • In accordance with the share buyback programme launched on 7 November 2016, 84,788,366 treasury shares, equal to 2.42% of the share capital, were purchased on 30 September 2017 at a total cost of €313 million and an average unit cost of €3.69 per share
  • On 13 October 2017, Snam completed the acquisition of 100% of the share capital of Infrastrutture Trasporto Gas S.p.A. and 7.3% of Adriatic LNG S.r.l. from Edison
  • The buyback of outstanding Snam bonds for a total nominal value of €607 million was successfully concluded. The buyback price, equal to €656 million in total, was largely financed through a bond issue with a nominal value of €650 million

Marco Alverà, Snam's CEO, made the following comments on the results:
“Our positive results in the first 9 months reflect the investments we have made and our increased efforts on operating and financial efficiency. We are continuing to invest in Italy - in line with our strategic plan - with the goal of improving the competitiveness and supply security of natural gas, supporting its central role in the energy transition. These solid results confirm our commitment to delivering profitable growth and strong returns for our shareholders.”

1 Unless stated otherwise, the 2016 results pertain to continuing operations (natural gas transportation, regasification and storage) and consequently they do not include the contribution from the natural gas distribution sector stated as "discontinued operations" in accordance with the provisions of the IFRS 5 accounting standard "Non-Current Assets Held for Sale and Discontinued Operations". Please refer to page 11 of the pdf document for the reconciliation of the Reported Income Statement with the Adjusted Pro-Forma Income Statement for the first nine months of 2016.

Page Alert
05 March 2018 - 16:42 CET