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Financial results

Natural gas distribution (Photo)

Natural gas distribution revenue amounted to €1,271 million in 2013, a decrease of €127 million, equal to 9.1%, compared with 2012. Excluding revenue from the application of IFRIC 12, distribution revenue decreased by €121 million, or 11.3%. The reduction was due to the effects of the recognition in 2012 of adjustments relating to the 2009-2011 period (€143 million) pursuant to Resolutions 315/2012/R/gas and 450/2012/R/gas of the Electricity and Gas Authority21, which amended some of the tariff determination criteria for the third regulatory period (2009-2012). These effects were partly offset by higher revenue from tariff updating mechanisms (+€22 million).

Adjusted net profit in 2013, which excludes special items22, amounted to €516 million, down €110 million, or 17.6%, compared with 2012.

The reduction is mainly due to: (i) lower revenue for the natural gas transmission service (-€121 million); (ii) the reduction in other revenue and income (-€35 million), due mainly to lower capital gains on natural gas distribution concessions; and (iii) higher amortisation, depreciation and impairment losses (-€27 million) due to both the entry into service of new infrastructure and the effects (-€15 million) of the costs incurred in the awarding of the concession for Rome, where Italgas no longer owns assets but holds a concession to use them. 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).

These factors were partly offset by the reduction in operating costs (+€65 million) attributable to provisions for risks and charges, which were considerably lower 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.

21 For further details, see the “Regulation” section.

22 Information on the nature of the special item and the reconciliation of EBIT with adjusted profit can be found under the heading “Reconciliation of EBIT and net profit with adjusted EBIT and adjusted net profit” in the “Financial review” section.

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Key performance indicators

 

 

 

 

 

 

(€ million)

2011

2012

2013

Change

% Change

(*)

Before consolidation adjustments.

(**)

EBIT for 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.

(***)

The 2012 figure was restated following the retrospective application of the new provisions of IAS 19.

(****)

This figure refers to the kilometres of network managed by Italgas.

Core business revenue (*)

1,297

1,434

1,315

(119)

(8.3)

- of which natural gas distribution revenue

1,263

1,398

1,271

(127)

(9.1)

Core business revenue net of IFRIC 12

937

1,109

996

(113)

(10.2)

- of which natural gas distribution revenue

903

1,073

952

(121)

(11.3)

Operating costs (*)

633

698

638

(60)

(8.6)

Operating costs net of the effects of IFRIC 12

273

373

319

(54)

(14.5)

EBIT (**)

559

626

505

(121)

(19.3)

- of which special items

 

 

11

11

 

Adjusted EBIT (**)

559

626

516

(110)

(17.6)

Technical investments

394

359

358

(1)

(0.3)

Net invested capital at 31 December (***)

3,589

3,850

4,019

169

4.4

Gas distribution (millions of cubic metres)

7,450

7,462

7,352

(110)

(1.5)

Distribution network (kilometres) (****)

52,516

52,586

52,993

407

0.8

Active meters (millions)

5.897

5.907

5.928

0.021

0.4

Employees in service at 31 December (number)

3,005

3,016

3,008

(8)

(0.3)

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