The Snam Rete Gas Outdoor Investor Days: institutional investors tour the Dispatching Centre and LNG terminal in Panigaglia
A group of Italian and international institutional investors of Snam Rete Gas met the top management of the company for an investor site visit, which includes a tour of the San Donato Milanese Dispatching Centre and the LNG terminal in Panigaglia.
During this site visit, Chairman Alberto Meomartini and CEO Carlo Malacarne described to investors the development plans for the company and the network, and gave an overview of the management of the national gas pipeline network and the activities at the LNG plant in Panigaglia. The LNG plant in Panigaglia is currently the only terminal for the regassification of liquefied natural gas in operation in Italy and is managed by GNL Italia, a company wholly controlled by Snam Rete Gas.
The Snam Rete Gas transportation system, composed of an 8,000-km national network, a 22,000-km regional network and 11 compressor stations, is continuously under remote control and adjusted in real time by the Dispatching Centre , the “network brain�?, in order to provide the quantities of gas required at any moment and in any point of the network. All of this is made possible by the work of the Dispatching control room, equipped with sophisticated systems for control and demand prediction, and manned 24 hours a day by specialised personnel.
Chairman Alberto Meomartini pointed out the increase in investments from the IPO (1.6 billion euro in 2001-2004) up to the expected 3.5 billion euro in the 2006-2009 Plan. Today, the primary backbone network transports 85 billion cubic metres of gas per year, with a daily capacity of 260 million cubic metres; in three years this capacity will exceed 300 million cubic metres per day, and is expected to reach over 400 million cubic metres per day in 2015. The number of shippers operating on the network has risen from about twenty in 2001 to the current fifty.
Snam Rete Gas carries out infrastructure planning aimed at guaranteeing the availability of transport capacity over time, as required by shippers, to satisfy the growing need for natural gas over the next few years. We estimate that consumption in 2010 will reach 95 billion cubic metres, rising to 106 billion in 2015.
The CEO, Carlo Malacarne pointed out that the company’s to create value is provided by:
- the development of transport networks, which benefits of a premium over the base rate of allowed return set by the current regulatory regime (6.7%);
- the growth in transported volumes;
- the increased operating efficiency as compared to the target set by the authority;
- financial efficiency in terms of outperformance of the cost of capital of the company compared to the level of WACC used by the regulatory authority.
The investment plan is funded by cash flows from current operations. The new investment plan of Snam Rete Gas will be released at the beginning of 2007.
Snam Rete Gas distributed an ordinary dividend for 2005 of 0.17 euro/share, which is expected to increase annually, at least in line with inflation, during the 2006-2008 period.
The infrastructure planning and construction process is aided by the company’s expertise in the design and construction of large transportation networks; by research and use of the most advanced technologies for materials, by innovative technologies for excavation and laying of natural gas pipelines and by environmental recovery of the areas used. Within a policy for sustainable development, the planning, localisation, construction, management and disposal of each activity and plant is carried out in full respect of the company’s internal and external environment, to protect the health and safety of employees and third parties.
Welcome to Snam Rete Gas Dispatching Centre Investor Site Visit
05 August 2016 - 16:35 CEST