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12 Property, plant and equipment

Property, plant and equipment of €15,399 million (€14,851 million at 31 December 2013) breaks down as follows:

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31.12.2013

(€ million)

Land

Buildings

Plant and equipment

Industrial and commercial equipment

Other assets

Non-current assets under construction and payments on account

Total

Cost at 31.12.2012

153

612

17,702

226

96

1,650

20,439

Investments

4

3

 

11

1

877

896

Disposals

 

 

(17)

(8)

(3)

(3)

(31)

Other changes and reclassifications

3

40

549

(3)

15

(635)

(31)

Cost at 31.12.2013

160

655

18,234

226

109

1,889

21,273

 

 

 

 

 

 

 

 

Provisions for amortisation and depreciation at 31.12.2012

 

(204)

(5,473)

(162)

(67)

 

(5,906)

Amortisation and depreciation

 

(12)

(486)

(21)

(9)

 

(528)

Disposals

 

 

12

7

3

 

22

Other changes and reclassifications

 

(1)

10

4

(2)

 

11

Provisions for amortisation and depreciation at 31.12.2013

 

(217)

(5,937)

(172)

(75)

 

(6,401)

 

 

 

 

 

 

 

 

Provision for impairment losses at 31.12.2012

 

(5)

(6)

 

 

 

(11)

(Impairment losses)/reversals

 

 

(10)

 

 

 

(10)

Provision for impairment losses at 31.12.2013

 

(5)

(16)

 

 

 

(21)

Net balance at 31.12.2012

153

403

12,223

64

29

1,650

14,522

Net balance at 31.12.2013

160

433

12,281

54

34

1,889

14,851

  Download XLS (24 kB)

 

31.12.2014

(€ million)

Land

Buildings

Plant and equipment

Industrial and commercial equipment

Other assets

Non-current assets under construction and payments on account

Total

Cost at 31.12.2013

160

655

18,234

226

109

1,889

21,273

Investments

1

2

2

14

 

894

913

Change in scope of consolidation

2

38

 

12

3

 

55

Disposals

 

 

(34)

(11)

(7)

1

(51)

Other changes and reclassifications

2

26

1,051

(5)

17

(955)

136

Cost at 31.12.2014

165

721

19,253

236

122

1,829

22,326

 

 

 

 

 

 

 

 

Provisions for depreciation at 31.12.2013

 

(217)

(5,937)

(172)

(75)

 

(6,401)

Amortisation and depreciation

 

(14)

(489)

(16)

(11)

 

(530)

Change in scope of consolidation

 

(18)

 

(5)

(3)

 

(26)

Disposals

 

 

26

9

7

 

42

Other changes and reclassifications

 

8

 

4

3

 

15

Provisions for depreciation at 31.12.2014

 

(241)

(6,400)

(180)

(79)

 

(6,900)

 

 

 

 

 

 

 

 

Provision for impairment losses at 31.12.2013

 

(5)

(16)

 

 

 

(21)

(Impairment losses)/reversals

 

 

(6)

 

 

 

(6)

Provision for impairment losses at 31.12.2014

 

(5)

(22)

 

 

 

(27)

Net balance at 31.12.2013

160

433

12,281

54

34

1,889

14,851

Net balance at 31.12.2014

165

475

12,831

56

43

1,829

15,399

Property, plant and equipment (€15,399 million, compared with €14,851 million at 31 December 2013) relates mainly to transportation (€12,385 million), storage (€2,696 million), distribution (€226 million) and regasification (€88 million) infrastructure.

Investments18 (€913 million) refer mainly to the transportation (€664 million), storage (€229 million) and distribution segments (€12 million).

During the year, Snam capitalised €36 million of financial expenses (€34 million in 2013).

Depreciation (€530 million) refers to economic and technical depreciation determined on the basis of the useful life of the assets or their remaining possible use by the Company.

During the year, there were no changes in the estimated useful life of assets or in the depreciation rates applied and explained by category in Note 3 – “Measurement criteria – Property, plant and equipment”.

Capital contributions from government authorities and other entities (€76 million and €282 million; €75 million and €257 million respectively at 31 December 2013) are recorded as a deduction in the net value of property, plant and equipment.

Changes in the scope of consolidation of €29 million relate to the acquisition by Italgas S.p.A. of control of A.E.S.19

Disposals (€9 million) relate mainly to sections of pipelines and some components of compression stations.

Impairment losses and reversals (€6 million) refer essentially to the impairment of auxiliary piping in the transportation segment.

The value of plant and equipment includes site dismantling and restoration costs (€322 million), relating mainly to natural gas storage (€196 million) and transportation (€123 million) sites.

Other changes and reclassifications (€151 million) relate essentially to: (i) the change in estimated (discounted) costs for site restoration and dismantling (+€157 million) in the natural gas storage and transportation segments, which are offset by the recognition of a specific provision20; (ii) the change in stocks of pipes and related accessory materials purchased for investment purposes and not yet used in the production of plants in the natural gas transportation segment (+€35 million); and (iii) grants for the period (−€31 million).

Contractual commitments to purchase property, plant and equipment, and to provide services related to the construction thereof, are reported in Note 24 – “Guarantees, commitments and risks”.

Property, plant and equipment by business segment

Pursuant to the provisions of IFRS 8 – “Operating segments”, a breakdown of property, plant and equipment by business segment appears below:

  Download XLS (23 kB)

(€ million)

31.12.2013

31.12.2014

Historical cost

21,273

22,326

Transportation

17,447

18,133

Storage

3,187

3,512

Distribution

490

532

Regasification

136

142

Corporate and other activities

13

7

Provision for depreciation and impairment losses

(6,422)

(6,927)

Transportation

(5,314)

(5,748)

Storage

(767)

(816)

Distribution

(282)

(306)

Regasification

(49)

(54)

Corporate and other activities

(10)

(3)

Net balance

14,851

15,399

Transportation

12,133

12,385

Storage

2,420

2,696

Distribution

208

226

Regasification

87

88

Corporate and other activities

3

4

18 Investments by business segment are shown in the “Business segment operating performance” section of the Directors’ Report.

19 For further information, see Note 23 – “Business combinations”.

20 Further information can be found in Note 19 – “Provisions for risks and charges”.

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